Using a savings App

Malthusian

PRAISETHESUN wrote: »

They don't have full FSCS protection that I know of, but they ring-fence their money in big banks that are unlikely to go under so the money should be safe.

Lehman Brothers, HBOS and Northern Rock were big banks that everyone (including rating agencies and other experts) agreed were unlikely to go under.

Chip and Plum (I know Chip is non-FSCS protected, not sure about Plum) are high risk loans to a single company and are unsuitable for anyone who would use them.

londoninvestor

Malthusian wrote: »

Lehman Brothers, HBOS and Northern Rock were big banks that everyone (including rating agencies and other experts) agreed were unlikely to go under.

True, although with "e-money" apps I'd say the likelihood of the "big bank" going under is less than the chance that the money isn't actually ring-fenced, because the e-money provider has failed to segregate the assets, either through error or fraud.

In that case, the money wouldn't be recoverable by depositors, except by joining the long queue of unsecured creditors.

The FSCS, by contrast, protects you against the loss of your deposit for any reason at all, whether it's process error, bad business judgement or fraud.