The Top Easy Access Savings Discussion Area

The_Green_Hornet

worriednoob said:

OceanSound said:

TiVo_Lad said:

OceanSound said:

wmb194 said:

worriednoob said:

Let's leave the pronoun business to a different topic/different day  .  

As a saver, I'm extremely worried with what @wmb194 has recently posted on THIS THREAD about Chip's finances on Companies House.  The company is making colossal losses according to their full accounts (upto Dec 2022) released at end of April 2023.

Isn't this a cause for concern for other savers?  I thought as a bank, they would have been financially stress-tested to ensure that they wouldn't go bust and leave customers out of pocket? 

Chip isn't a bank, it's an intermediary. IIRC deposits are held with ClearBank. If Chip goes '!!!!!!' it shouldn't be a problem, the biggest danger is probably that you might lose access for a week or two whilst the returning of deposits is being sorted out.

Can you expand on the highlighted please?

I keep hearing this 'x is not a bank'. Is what you say in the highlighted bit what makes it different from a bank?
Plus of course, not having 'direct' FSCS protection, but through ClearBank.

Is the additional time frame to return deposits the ONLY factor that is different to a bank (or building society) offering 'direct' FSCS protection on an account. e.g. HSBC, Natwest, Lloyds, Santander, Nationwide?

ClearBank are a Bank. They are no different in terms of FSCS cover than the others that you mention. The delay is the time it takes for the FSCS protection to kick in. If any financial institution that's covered by the FSCS scheme fails, you may not have access to your money for a short period while the scheme refunds your deposits.

Money that you deposit via CHIP is held by ClearBank who are directly FSCS protected.

So the delay to do with returning deposits applies to all financial institutions covered by FSCS. From the post I was replying to it seemed there would be an extended delay if chip goes under because in the case of Chip the FSCS isn't applied directly. I.e. it kicks in through ClearBank.

Thank you for clarifying 

So just for my understanding, let's say god-forbid that Chip/Clearbank went bust today - When you say there is a short period of delay for FSCS to refund, how long are we talking about? Days? Weeks? Months?  Also where is this information mentioned?

Thanks

How long will it take?

FSCS aims to pay compensation within 7 days of a bank or building society failing. More complex cases will take longer.

https://www.fscs.org.uk/what-we-cover/banks-building-societies/

puzl

Quick question. I successfully applied for a Shawbrook savings account yesterday (Sunday) and transferred the initial deposit from my linked bank. Nothing there as of this morning. I assume this is a Sunday + Bank Holiday Monday related delay, but how long does it normally take to move+update funds with Shawbrook?

janusdesign

puzl said:

Quick question. I successfully applied for a Shawbrook savings account yesterday (Sunday) and transferred the initial deposit from my linked bank. Nothing there as of this morning. I assume this is a Sunday + Bank Holiday Monday related delay, but how long does it normally take to move+update funds with Shawbrook?

https://help.shawbrook.co.uk/hc/en-gb/articles/5600608425618-How-quickly-will-the-funds-show-in-my-account-and-when-will-I-start-to-earn-interest-

Funds are credited to your account the same working day, if you send them before 3.30pm. If you send the funds after this time or not on a working day (Saturday and Sunday or English bank holiday), the funds will credit your account the following working day.

For example, if you send funds from your bank account on Friday after 3.30pm, your account will show that the money has left, but it won’t show that we’ve received it in your Shawbrook account until the Monday, when we’ve applied it to your account.

If the Monday is an English public holiday, it won’t show until Tuesday.

You will begin to earn interest once the credit has been applied to your account.

If you've registered a mobile number with us, we'll send you a text to let you know the funds have been credited.

Futuristic

Minty33 said:

Investec Online Flexi Saver 3.51%. min £5000

Looks good, feel like many will increase ahead of the next meeting so I might just hold out 2 weeks. 

Band7

Futuristic said:

Minty33 said:

Investec Online Flexi Saver 3.51%. min £5000

Looks good, feel like many will increase ahead of the next meeting so I might just hold out 2 weeks. 

What would you hold out for? It's an instant access account with unlimited deposits and withdrawals

Futuristic

Band7 said:

Futuristic said:

Minty33 said:

Investec Online Flexi Saver 3.51%. min £5000

Looks good, feel like many will increase ahead of the next meeting so I might just hold out 2 weeks. 

What would you hold out for? It's an instant access account with unlimited deposits and withdrawals

Signing up to yet another bank, having to move in and out large sums of money all over again and facing bank reviews. 

Band7

Futuristic said:

Band7 said:

Futuristic said:

Minty33 said:

Investec Online Flexi Saver 3.51%. min £5000

Looks good, feel like many will increase ahead of the next meeting so I might just hold out 2 weeks. 

What would you hold out for? It's an instant access account with unlimited deposits and withdrawals

Signing up to yet another bank, having to move in and out large sums of money all over again and facing bank reviews. 

Crikey         

patpalloon

Minty33 said:

Investec Online Flexi Saver 3.51%. min £5000

That's not far behind their 90 day notice account! Come on Atom, get your finger out.

Bridlington1

Futuristic said:

Band7 said:

Futuristic said:

Minty33 said:

Investec Online Flexi Saver 3.51%. min £5000

Looks good, feel like many will increase ahead of the next meeting so I might just hold out 2 weeks. 

What would you hold out for? It's an instant access account with unlimited deposits and withdrawals

Signing up to yet another bank, having to move in and out large sums of money all over again and facing bank reviews. 

I've had the odd account freeze in the past as many (including people who only ever bank with one bank and never chase rates) have suffered but I certainly wouldn't let the fear of bank reviews stop you getting a top rate of interest on your savings.

In the past year I have bounced the bulk of my easy access savings (low 5-figure sums usually) in and out of easy access accounts with YBS, Coventry, Virgin, Al Rayan bank, Santander, Monmouthshire BS, Cynergy bank, Skipton, tandem and even Chip among others, before it has all ended up spread out around 2 dozen regular savers. The longest this money has stayed in any one EA account has been around 2 months, on some occasions it has only stayed put for a few days.

Not one payment has been held up in the last year. Even Santander, which seems to have gotten a reputation for being heavy handed on the fraud checks, let me deposit over £20k in their e-saver before transferring it all out to Al Rayan within weeks (may have even been days) without any issues whatsoever last autumn.

Personally if someone is offering me a market leading EA rate I take it, if someone else trumps them next week I move my money again. You are entitled to keep your savings with whichever bank(s) will let you and most EA accounts only require a quick faster payment to be funded so for me it's a no brainer.

allegro120

Futuristic said:

Band7 said:

Futuristic said:

Minty33 said:

Investec Online Flexi Saver 3.51%. min £5000

Looks good, feel like many will increase ahead of the next meeting so I might just hold out 2 weeks. 

What would you hold out for? It's an instant access account with unlimited deposits and withdrawals

Signing up to yet another bank, having to move in and out large sums of money all over again and facing bank reviews. 

I know what you mean. It happened several times to me when I opened an account, moved funds there and in a couple of hours there was a better deal from somewhere else. Having long conversations with fraud departments is also annoying especially if they call at a very inconvenient time.  Sometimes I prefer to compromise on efficiency in favour of convenience.