Investec

[Deleted User]

It's the comprehensive list of charges I don't understand that makes me a bit suspicious. I get the feeling I'm a naive saver who's going to get eaten for breakfast by the big boys.
And what about the employers address, are they really asking them for references? My last employer has closed down, so I don't want them pocketing the interest on a £25k deposit whilst they faff around writing to empty premises.

Farway

I suspect as they are aimed at high net worth individuals the HNWI have minions to worry about the charges and presumably they could be the employer rather than employee

All things relative, like do Rolls Royce owners care about road tax or petrol prices? Same with this bank maybe

Myrmidon_J

sailv8 wrote: »

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.

This is true.

But I thought that the credit rating attached to any institution - financial or otherwise - also took into account 'assets' (in the general sense) that could be sold to meet liabilities.

So although RBS, Lloyds etc. have "capital issues", they can at least sell branches / assets under management (etc.) to repay creditors...

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.

I would - if I knew where to find these (recent) financial statements! Any ideas?

...

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 on people.

Thanks - that's useful information.

I might go for it anyway. I think the 'High 5' account is a great place to stash cash savings, without having to worry about chasing the best rate.

[Deleted User]

Farway wrote: »

HNWI have minions to worry about the charges
All things relative, like do Rolls Royce owners care about road tax or petrol prices?

I just wonder at people who will fret over finding the best rates, but then ignore all the other loopholes.

Another catch is the amount of time your cash spends "in limbo" earning no interest whilst transferring between accounts, it can be up to a month in some cases. That's like reducing your interest rate from 4% to 3.66%, but it seems like it's only me who notices or cares.

Now as I'm trying to switch to fixed rates, I've discovered a new catch: the rate's not fixed until they open the account, and not at the time they receive the application. Again, that can be up to a month different, so with interest rates dropping at the rate they are that's potentially another huge loss.

[Deleted User]

I sent them an email enquiring about some of their more obscure charges. They haven't replied, which probably says enough, really.

martyn4764

jack_pott wrote: »

They haven't replied, which probably says enough, really.

They never replied to either of my emails either, doesn't bode well for good service, does it?

I did, OTOH, get a very prompt response from
ConnectUK AT investec DOT co DOT za
if that's of any use.

G_M

I had a very quick reply from Investec:
"
Thank you for your email.
Our charge sheet relates to all our accounts and not specifically the High 5 account.
When opening the account with a cheque deposit there is no charge and neither is there a charge when depositing funds further at a later stage.
Should you place your funds on 3 months notice for withdrawal the BACS transfer will be at no cost and neither will there be a charge for a BACS deposit into the account.
Should you have any further queries please contact the banking team on +44 207 597 4131 at your convenience."

I have now opened an account (very quick/efficient), and deposited funds via BACS with no charge applied. I also received £50 which they give all new applicants who are referred by an existing account-holder. If you want to use me as a referree to get this, PM me.

5fEtsd9Hs1LOR3SQftY9

Myrmidon_J wrote: »

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.

I am attracted by their High 5 Account - just what I need. But like Myrmidon I am finding it hard to assess their financial position. Can any one help?

The parent company seems about 30% UK, 60% South Africa, and nearly 10% Australia. Australia seems to have suffered a bit. Uk seems to be strong as of 30 September trading report. I listened to the statement and followed the viewgraphs from the website - and it all sounded great with not much exposure to USA or bad positions in Uk mortgages. The speaker said they have a 35% downturn in house prices built in to their risk considerations. But I agree with Myrmidon, that being rated by Moody's and by Fitch as only a little above the investment Grade/Junk bond boundary does not sound so good.

I know my money is going to be covered by the FSCS compensation scheme, but I am not keen on the whole idea of that, since if I save with a risky bank which goes bust, then all the other UK registered banks have to cough up, i.e. the safe banks bail out the savers in the dodgy banks - this is a unjust system which I dont want to be part off, hence I need to know if Investec are likely to fail in the next year or so.

G_M

$1M question! If you had asked most experts if Northern Rock would fail a month before they failed, most would have said 'no'! Anyone on this site who can answer your question would not be on this site - they'd be on their yacht in the Bahamas!

5fEtsd9Hs1LOR3SQftY9

Well you are right, I can't expect a definitive answer, but I thought someone with a bit more experience of reading financial documents and statements might shed some light.

I adivsed my son not to send his money to Iceland about a month before the dam broke there, but it was not hard to see that they were going into a very poor situation and as UK banks had already failed it did not seem worth taking the risk with Iceland. I also advised him not to go with the Irish banks despite the Irish guarantee.

However a few months later I find the High 5 Account rate very attactive and have been trying to understand their business, but I am no expert. I have googled quite a bit have not found anything adverse in the news.