Are overseas savings accounts a bad idea?

mexiojone

I've been interested in opening a savings account that's just an easy sign-up, easy access savings account - not directly attached to a current account. I'm looking for this standalone type of account mostly to help me along with self control and not dipping in (saving can be tough on minimum wage!).

I noticed this is what the fairly new RCI Bank offer and with decent rates.

It seems appealing to me but upon looking it up and reading some articles there are a couple that shine a negative light on the idea claiming RCI is a risky choice to store your nest egg. Some warn about possible complications because their accounts aren't under the protection of FSCS too. What's the likelihood of there being a big problem?

Sanctioned_Parts_List

1% to 1.5%? Decent rates? Umm....

Anyway, while it's not covered by the UK FSCS, it's covered by the French equivalent, so while it might be a bit of a faff getting your money back if the bank folds, it'll happen eventually, care of the French taxpayer.

mexiojone

Sanctioned_Parts_List wrote: »

1% to 1.5%? Decent rates? Umm....

Anyway, while it's not covered by the UK FSCS, it's covered by the French equivalent, so while it might be a bit of a faff getting your money back if the bank folds, it'll happen eventually, care of the French taxpayer.

Well taking into account the amount of money I have to work with, how much I plan to save, the type of account I'm looking for and compared to others.. yes, for now.. not bad rates.

Besides, for now interest rates don't.. interest me as much as just having a place to build a little bit more then go from there

YorkshireBoy

mexiojone wrote: »

Well taking into account the amount of money I have to work with, how much I plan to save, the type of account I'm looking for and compared to others.. yes, for now.. not bad rates

It's no better than the best FSCS backed 'savings' accounts is it?

How large is the lump and what will you be adding monthly?

mexiojone

YorkshireBoy wrote: »

It's no better than the best FSCS backed 'savings' accounts is it?

How large is the lump and what will you be adding monthly?

I'm not really here to talk specifically about what money I have to invest.. I was simply drawn to RCI and wanted to know if it's really that much more of a risk to go with a newer, lesser known bank

YorkshireBoy

mexiojone wrote: »

I'm not really here to talk specifically about what money I have to invest..

Your OP implied it wouldn't be much going forward (but didn't allude to the likely size of an initial lump sum). I was intending to try and suggest a better alternative that's all.

I was simply drawn to RCI and wanted to know if it's really that much more of a risk to go with a newer, lesser known bank

Yes it is, in my opinion. Not so much because it's new (to you), but because it doesn't have UK FSCS protection. And, moreover, its an unnecessary risk.

Sanctioned_Parts_List

"I'm not really here to give you the information you require to give informed advice, but I want an answer anyway."

OK.

RCI's only new in Britain. It's 52 years old in France and backed by Renault. So provided people keep buying weird-shaped, slightly unreliable French cars, it's as safe as a bank can be.

mexiojone

Sanctioned_Parts_List wrote: »

"I'm not really here to give you the information you require to give informed advice, but I want an answer anyway."

OK.

While I appreciate any help offered, my original reason for posting wasn't for a recommendation based upon interest rates/saving goals. It was more about accounts like these that RCI offer I apologise if I'm ruffling any feathers by being awkward

dunstonh

I'm not really here to talk specifically about what money I have to invest.

How do you expect people to engage in discussion if you do not provide info to help the discussion.

You are on minimum wage and are asking if introducing currency fluctuation in an attempt to get an extra 0.5-1%. interest rate is viable. You say saving is tough. So, the amount is unlikely to be that large. So, on that basis, the answer is no. It would be daft. The movement in sterling has shown you how much you could lose by doing this. Your comments suggest you do not have the capacity for loss that such a transaction.

Ballard

The OP asked a very specific question about a specific bank so I'm not sure why there is the need to know what sort of amount they are thinking of depositing. Information about protection limits are all that's required, surely?

As far as I can tell, the bank take deposits in Sterling so currency fluctuations wouldn't be an issue.

There may well be better rates out there but they haven't asked for that advice so I don't see any need to provide it.

I really find it odd that a simple question by a new poster creates so much irritation.

fwor

Ballard wrote: »

I really find it odd that a simple question by a new poster creates so much irritation.

I think it's because with actual figures, people could say - for example - "while it's less than £2k you would be better off with a TSB current account" or similar, but with no figure at all that's more difficult.

I've opened an account with RCI and I don't see any problem with it - if you're saving tens of £k's then the extra half percent is IMO worth it. If the sum is a few £k's then it's probably not worth the effort.

As others have said, RCI take deposits in Sterling and pay back out in Sterling, so currency fluctuations are their problem, not yours.