First Save newsletter

peaksoft

I have about £40,000 invested with First Save, which has been FSCS covered since I first opened the account.

However, out of the blue I have suddenly received a "newsletter" from First Save, with no news other than one item that starts...

Important information about compensation arrangements

We are covered by the Financial Services Compensation Scheme (FSCS). The FSCS can pay compensation to depositors if a bank is unable to meet its financial obligations. Most depositors - including most individuals and small businesses - are covered by the scheme.



I have emailed them to ask why they are giving me this "news" but I have received no reply. Could it be that they are in trouble, and are trying to forestall a flood of anxious inquiries?

premierfella

More likely it is either a requirement by the regulator (I have had a few of these emails from other banks and building societies of late) or FirstSave have a policy of advising customers regularly that they are covered under the FSCS simply as a reassurance reminder.

I certainly wasn't unduly concerned when I received the email today (although I admit my savings with them are only nominal at the moment).

MGCP

I think First Save (who I also have an account with) are particularly conscious of the need to reassure people that they are covered by the scheme, particularly as their association with Nigeria makes people think (rightly or wrongly!) about all the scams that seem to emanate from there!

jema_2

as in the title, i'm not too happy with the no new accounts ... as stated on their web site

jimjames

jema wrote: »

as in the title, i'm not too happy with the no new accounts ... as stated on their web site

So it does. I guess what happened was that they realised they would have to stop taking on new accounts but sent out the email to reassure people that this didn't mean they had gone bust. Looks like it might have backfired!

Due to the success of FirstSave, new accounts are currently unavailable until further notice.

peaksoft

So why should a bank turn away money completely?

If their present interest rates are unsustainable, wouldn't the normal practice be for them to reduce them?

Lokolo

peaksoft wrote: »

So why should a bank turn away money completely?

If their present interest rates are unsustainable, wouldn't the normal practice be for them to reduce them?

They need to have people borrowing the money. Whats the point in having all that cash when they can't lend it out to people at a higher rate?

peaksoft

Fine. So if they can't lend it, how do they repay the people who lent it to them in the first place?