Butterfield Private Bank

baffcat

Hi

My financial adviser is recommending we put some of the money from the sale of a business premises into a Fixed Rate Interest Account with Butterfield Private Bank.

We've already started the process, but in the light of sub-prime mortgages and Northern Rock, I've begun to wonder how safe our money would be there.

Are private banks regulated in the same way as the big boys, and if so, is the level of security the same?

No doubt I'll be able to find this out tomorrow, but I thought there was bound to be some bright spark who could set my mind to rest today.

Thanks

Baff

FelOn_2

baffcat wrote: »

Hi

My financial adviser is recommending we put some of the money from the sale of a business premises into a Fixed Rate Interest Account with Butterfield Private Bank.

We've already started the process, but in the light of sub-prime mortgages and Northern Rock, I've begun to wonder how safe our money would be there.

Are private banks regulated in the same way as the big boys, and if so, is the level of security the same?

No doubt I'll be able to find this out tomorrow, but I thought there was bound to be some bright spark who could set my mind to rest today.

Thanks

Baff

You'll only get the standard protection (2k + 33k[90%]), so is it worth it with the substantial amount you must have from your premises sale? Looks like this bank has Bermudan connections :eek:

[Deleted User]

Whats the interest rate on the account, lots of 7% bonds around at the moment

Cook_County

Ask what size of introduction fee the IFA is getting and if this can be rebated?

Steve_xx

Butterfield bank has a British arm, and even if it's based in Bermuda, it's still essentially British since Bermuda is still a UK colony.

However, looking at their interest rates I cannot see anything startling or spectacular about them. There are far better term rates to be found elsewhere.

You did not say how much money you have to bank. My view is that you should spread the risk in order to minimise it. I certainly would not recommend that you put in excess of 30k in any one institution. Then, if the worst should happen in any one institution, you would be guaranteed to get most of your cash back.

Frankly I would not take too much heed of your Financial Advisor. You can have a 6 month fixed term account with Halifax that will pay 6.7% and there are several others like it.

dunstonh

The retail terms may not be the same as those available through the adviser. However, utilising a private bank for a deposit is an unusual recommendation. Be interesting to know what about your circumstances led to this recommendation.