Agribank savings bond 3.35% fixed 3 years inquiry

Meri

Hi I have been looking for savings bond at highest interest possible for over £10,000 over three years.


Found Agribank on moneysupermarket.com


But its not yet highlighted on this site so wondered if there may be a reason it may not be suitable for UK resident.


So far always used this site for my savings guidance but need to now move some capital by middle of this month.


So is it new do you think or because it USA not suitable or covered by insurance?


Was thinking of doing a second 123 Santander acct too but obviously this 3.35% useful for capital.


Any thoughts appreciated, thanks

Masomnia

It's an investment security, rather than a savings account. So you are not covered by the FSCS.

You'll have to weigh up the risks of the investment and decide whether you think it's worth the extra risk for the extra interest.

Ifts

One of the top rates for a 3 year fix is 2.71% offered by Secure Trust Bank:

http://moneyfacts.co.uk/savings/fixed-rate-bonds/

the rate is 0.64% lower but this one is covered by the FSCS.

alanq

Meri wrote: »

Found Agribank on moneysupermarket.com
...
So is it new do you think or because it USA not suitable or covered by insurance?

The Agribank that I have found on MoneySupermarket.com has a Maltese banking licence and as far as I am aware has no connection with the US organisation of the same name.
http://agribankplc.com/about-us/

Previously discussed here
https://forums.moneysavingexpert.com/discussion/4458753

Meri

Hi, thanks all for answers, thought there may be issue I not aware of.

I have seen the secure trust bank site and that's my top one so far after opening second Santander 123.

I got small inheritance after mum died, just done the capital gains tax return.

Used BM savings for last year and got Santander fixed rate three per cent Isa last year.

Now need to find if there another Isa for this coming tax year as cannot add to Santander one as fixed for another year.

As someone who never had any savings had to learn a lot to make this capital last till and earn interest.

I have always used this site for money saving advice as well as read forum.

Thanks for links will have good read.

Happy New Year all 😊

marzammit

On the Times of Malta and the official AgriBank site it says that the bank is now covered by a depositor scheme
'' Agribank customers are now covered by the MFSA’s Depositor Guarantee Scheme, two-and-a-half years after the bank got its licence. ''
on the article it also states that this applies to all uk customers

alanq

marzammit wrote: »

On the Times of Malta and the official AgriBank site it says that the bank is now covered by a depositor scheme
'' Agribank customers are now covered by the MFSA’s Depositor Guarantee Scheme, two-and-a-half years after the bank got its licence. ''
on the article it also states that this applies to all uk customers

I would still avoid.

"AgriBank PLC the specialist lender to UK farmers,..." so why is it not registered as a UK bank?

As we saw with Iceland, sometimes deposit guarantee schemes can have difficulty meeting their obligations when things go wrong.

The Saver Bond transfer form on its website has not yet been updated and still says "The AgriBank Saver Bond does not qualify as “an eligible deposit” as provided for in the Depositor Compensation Scheme Regulations and hence is not guaranteed by the Malta Depositor Compensation Scheme, the UK Financial Services Compensation Scheme or any other compensation scheme".
http://agribankplc.com/transfer-forms/

The "applies to all uk customers" only refers to Saver Bonds. The 5% 5Y Co-Invest bonds listed under "Savings" are investments not savings and as the site says "The AgriBank Co-Invest Bonds is a transferable senior debt security of AgriBank PLC and is not protected by the Malta Depositor Compensation Scheme, the UK Financial Services Compensation Scheme or any other deposit compensation scheme. The AgriBank Co-Invest Bonds is not protected by an investor compensation scheme. "

Would the UK Ombudsman be able to assist in any dispute?
"Excluded from the jurisdiction are firms based outside the United Kingdom which do not have an establishment in the UK but which direct sales into the United Kingdom. This means that these firms are not subject to the Compulsory Jurisdiction of the Financial Ombudsman Service and cannot become a VJ participant."
http://www.financial-ombudsman.org.uk/publications/guidance/complaint-handling-rules.htm

colsten

alanq wrote: »

I would still avoid.

Agree 100%. Excellent analysis by you.

You also got to wonder what motivates somebody to sign up to the MSE Forum just to post some partial facts.