Fidor - current account w/o credit check

Archi_Bald

There's a new kid on the block for those who have difficulties getting a current account. The website promises "Free account, easy sign-up, no credit check, attractive interest rate and no maximum balance". Fidor have a german banking licence and there's no mention of FSCS protection, so it wouldn't be a place to keep much money in.

The "attractive interest rate" is 0.25%, but if more people like Fidor on Facebook, the rate can go to the dizzy heights of 0.5% (honest!).

That's not the only thing that's different - - the T&Cs stretch to 48 pages and I lost the will to live reading through them.

I have signed up for a laugh, and now will apparently receive a security code by snail mail before my account is fully usable. The entire look & feel of the site is very "social networky", so might appeal to people who love that kind of thing.

There's a free fiver in my account now but I haven't yet figured out whether I can actually use that money.

https://www.fidorbank.uk/personal-banking/smart-account

Facebook: https://www.facebook.com/fidoruk?fref=ts

Price and Bonus List: https://www.fidorbank.uk/document-center/documents#pricelist

Kendall80

I looked into this earlier this morning. It seems a good idea for the young social network types and maybe the way banking is heading. I'm going to wait on the sidelines for now as the interest rates are on the low side. Their savings bonds do however offer up over 2% if you're willing to lock money away for a few years.

Former_MSE_Helen

Fidor Bank is an online-only bank established in Germany in 2009, but it's not covered by the UK's FSCS protection...

Read the full story:

Challenger bank 'Fidor' launches in the UK today: But how good is it?




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Archi_Bald

Kendall80 wrote: »

Their savings bonds do however offer up over 2% if you're willing to lock money away for a few years.

They have no FSCS protection so if Fidor went bellies up, you'd need to try your luck with the german equivalent to FSCS ("Fidor is a member of the deposit protection fund of German banks (Entschädigungseinrichtung deutscher Banken GmbH)".

Having burnt my fingers in the Icelandic debacle, I would never again rely on a foreign depositor protection scheme, not even if it's inside the EU.

Archi_Bald

MSE wrote:

It's not backed by the German government as is the case with the UK's FSCS.

How is FSCS backed by the UK government? It's a statutory scheme, just like the German (and other EU countries') one, but it is entirely funded by the industry. The FSCS might need a loan if there is an extreme compensation situation but they have no guarantee that they'd get such a loan from the Treasury. Similar applies in all other EU countries.

Former_MSE_Sam_M

Archi_Bald wrote: »

How is FSCS backed by the UK government? It's a statutory scheme, just like the German (and other EU countries') one, but it is entirely funded by the industry. The FSCS might need a loan if there is an extreme compensation situation but they have no guarantee that they'd get such a loan from the Treasury. Similar applies in all other EU countries.

Thanks for flagging. We've removed that line from the story.

System

You also mention the UKs 85k limit when it's about to reduce to a near identical 75k limit to the €100,000 German scheme.

MSE_Sam_M wrote: »

Thanks for flagging. We've removed that line from the story.

ChiefGrasscutter

the Fidor CEO was interviewed on Radio 4 today program early morning.
I was only half listening
Said were going to "launch" in UK in a few weeks time as I recall - online only. (mmmm I thought all in all just like Icesave used to operate then)

I think the rest was the usual CEO twaddle and tw*t-speak probably something about innovative solutions to engage with your focus group customers so I mentally switched off.

JuicyJesus

I'm really not sure how much more innovative an approach someone could have to a current account without either being unsustainable or simply not an actual bank, and therefore exactly what value Fidor adds to the market.

djpailo

Looks a load of nonsense. First MetroBank came along with their casino-like branches and now this company comes along with their amateurish website and pathetic "like me on facebook" interest rate.

Who in their right mind would invest money, not protected by FSCS, for only a lousy 2% interest when many current accounts offer superior rates and their are a few savings accounts with better rates than that, all protected.

Archi_Bald

It's a current account in the first place, and might be of use to those who are unable to get a bank account anywhere else, due to their credit records. For them, FSCS protection and interest isn't so relevant.

It's no use for savers, not least because there is no FSCS protection.