Investec

[Deleted User]

Anyone know anything about them? I've had scores of accounts with umpteen banks, but I've not come across one that gives me quite such an uneasy feeling as this lot.

There's a page of obscure charges that I don't understand for a start. As far as I can see if I send them a cheque that goes missing in the post, they want to charge me £25 minimum for confirming whether they've received it!

Then they want my employers name and address. To ask them for a reference?

They ask how I found out about them. Nothing odd about that, but the only options are an IFA or referral from another customer. Has a bit of an air of "How did someone like you find his way into our little clique?"

And then there's the name Investec Private Bank. Private??

Farway

Not sure if same company, but there used to be an Investec Investment Trust co, of which I was a holder, perhaps they have morphed into this or was part of it in first place?

dunstonh

Investec do a range of products. They are more well known for unit trusts and institutional investments. However, they have dipped into the structured capital market and deposits.

sailv8

Investec have been in the UK since 1992. Their parent company Investec plc listed on the London Stock Exchange in 2002. A week or two back Investec plc was number 106 on the FTSE. They have a sister company in South Africa called Investec Ltd. They are a specialist mid-size bank with operations mainly in the UK, Australia, Channel Islands, Switzerland, South Africa. They are not a retail bank, so no branches. They tend to cater for high net worth individuals, hence private bank. Financial results show a more conservative balance sheet than most UK banks, and especially the UK clearing banks. The group is profitable, even in these tough times for banks. According to the UK government website https://www.dmo.gov.uk/index.aspx?page=CGS/CGSEligible the bank is an eligible institution under the government Credit Guarantee Scheme.

Myrmidon_J

dunstonh wrote:

Investec do a range of products. They are more well known for unit trusts and institutional investments. However, they have dipped into the structured capital market and deposits.

I was wondering about Investec myself - particularly in view of their 'High 5' account, which appears (on the surface) to be a real winner, for those with over £25,000 to deposit.

Trying to assess their financial strength, however, I am baffled.

There seems to be no mention of any liquidity crisis or capital adequacy issues; the share price is down this year, but not excessively so - and certainly when compared to its sector and other financial institutions.

(The share price tanked today for some reason, which I don't quite understand.)

But Moody's rate the corporate debt of Investec Bank (UK) Ltd. as BBB. Investment grade - but only just.

Why is this?

sailv8

I'm not convinced the rating agencies have a clue how to rate banks. RBS, Lloyds, Citi, Bank of America, ING, etc, etc - all have had great ratings from the credit rating agencies but have required capital injections from governments.

The Investec balance sheet is far less risky (less gearing) than most other banks. Look at the financial statements yourself and make your mind up.

withnell

Because Investec is geared towards HighNetWorth individuals, and the forms you fill in are to start a relationship with them, not specifically for savings, they are excessively detailed. I had a look at this account for my father - wasn't happy with the £10 charge for a BACs withdrawal tho!

martyn4764

withnell wrote: »

wasn't happy with the £10 charge for a BACs withdrawal tho!

That paperwork's really badly worded, isn't it?

I queried the BACS withdrawal charge and they confirmed in an email:
"From a High 5 account there is NO BACS charge of £10. There is only a £20 CHAPS charge with the High 5 account"

HTH

neilsedaka

I have had two business current accounts with Investec for several years. No problems. I have not encountered any charges and they used to pay a reasonable rate of credit interest, but now of course that's a different story.

nrsql

I've had business accounts with investec for many years and their service is very good.
Several weeks ago they were the biggest faller in the ftse but suspect that was just a timing thing.

A concern would be that they bought Kensington some time ago (specialist in sub prime mortgages) but think that's been written off.
They also specialise in non standard loans - but for that they do look at the business sensibly rather than try to force money oin people.
They are not even a big bank in SA but do have a nice market.

Must admit I've moved a lot of money out of Investsc over the last couple of years but that's just due a general concern over banks rather than anything to do with Investec.
I wouldn't be any more worried about them than other banks.

alanji

Also, the first £50k is covered under the FSCS.