The Top Easy Access Savings Discussion Area

Daliah

noh said:

Daliah said:

noh said:

soulsaver said:

Well if your funds are protected 'in transit' why aren't Raisin on their own web site absolutely clear about how it's protected 'in limbo'?

Deposit protection - FSCS | Raisin UK

I'm not implying it's anything but legit, but it reads like one of those scam sites; words designed to instill false confidence while deflecting attention away from risk whilst (?(aggregated?) funds are held by Raisin awaiting deposit with your chosen bank.

The T+Cs of the Raisin account state that the customer deposits are initially paid into an account with Starling.
"2.4 We cooperate with our service bank, Starling Bank Limited, (‘Service Bank’) a UK banking institution fully licensed under UK law. The Service Bank hosts the current account of the customer."
https://www.raisin.co.uk/terms-and-conditions/

I don't believe this means that Starling gives you FSCS protection on this account. Your account, and the legal relationship, is with Raisin UK. The fact that they are using a Starling service is not really relevant for FSCS purposes.

These words "The Service Bank hosts the current account of the customer." indicate that the deposit is to a current account with Starling designated to the individual customer.

Sure, but it is not a Starling Bank account. Starling just provide the hosting service*. Your contractual relationship is with Raisin UK, which has no FSCS protection itself.

OK, I'll take it all back and agree with you.  "Banking as a Service" is one of Starling's business lines and does provide FSCS cover to £85k. Goodness knows whether it's just a single £85k for Raisin and 'real' Starling accounts.

It's unclear why Raisin do not clarify this on their website.

noh

Daliah said:

noh said:

Daliah said:

noh said:

soulsaver said:

Well if your funds are protected 'in transit' why aren't Raisin on their own web site absolutely clear about how it's protected 'in limbo'?

Deposit protection - FSCS | Raisin UK

I'm not implying it's anything but legit, but it reads like one of those scam sites; words designed to instill false confidence while deflecting attention away from risk whilst (?(aggregated?) funds are held by Raisin awaiting deposit with your chosen bank.

The T+Cs of the Raisin account state that the customer deposits are initially paid into an account with Starling.
"2.4 We cooperate with our service bank, Starling Bank Limited, (‘Service Bank’) a UK banking institution fully licensed under UK law. The Service Bank hosts the current account of the customer."
https://www.raisin.co.uk/terms-and-conditions/

I don't believe this means that Starling gives you FSCS protection on this account. Your account, and the legal relationship, is with Raisin UK. The fact that they are using a Starling service is not really relevant for FSCS purposes.

These words "The Service Bank hosts the current account of the customer." indicate that the deposit is to a current account with Starling designated to the individual customer.

Sure, but it is not a Starling Bank account. Starling just provide the hosting service*. Your contractual relationship is with Raisin UK, which has no FSCS protection itself.

OK, I'll take it all back and agree with you.  "Banking as a Service" is one of Starling's business lines and does provide FSCS cover to £85k. Goodness knows whether it's just a single £85k for Raisin and 'real' Starling accounts.

I edited my previous post to add more info. There is a seperate contract with the Service Bank (Starling)

2.8 You will enter into the following contracts to open a Savings Account provided by any Partner Bank:

1. Platform Agreement with Raisin UK by your acceptance of these Terms;
2. Current Account Contract with the Service Bank regarding the opening and provision of the free-of-charge Raisin UK Account; and,
3. Deposit Contract with a Partner Bank.

2.9 You should refer to the Terms and Conditions of the Service Bank for further information as this is a legally binding agreement between you and the Service Bank for the provision of your Raisin UK Account.

I too don't understand why it is not clarified on their website. The only reference I have says halfway down this page

https://www.raisin.co.uk/how-raisin-uk-works/

Raisin UK and Starling Bank

In 2018, we were one of the first companies in the UK to utilise Starling Bank’s innovative open banking services. Starling Bank provides the FSCS protected functionality of the Raisin UK Account that allows you to transfer money to and from our partner banks.

soulsaver

If Raisin use Starling Bank as the first port of call (no intermediary) for receipt of your funds, to an account opened and ring fenced in your name, you'd get FSCS protection.

If that's the process they should spell that out on their web page.

Not only so you know you've got that protection but also so you would be aware that if you already had deposits in your own Starling ac, you would be aware that you risk going over the £85k protection.

If they don't say clearly that's the process, then it likely isn't.

So, if it's aggregated funds in Raisin's name, which sounds like the last paragraph above, then your funds are not FSCS protected until they reach your chosen bank.

noh

soulsaver said:

If Raisin use Starling Bank as the first port of call (no intermediary) for receipt of your funds, and it's an account opened and ring fenced in your name, so FSCS protected, then they should spell that out on their web page.

Not only so you know you've got that protection but also so you would be aware that if you already had deposits in your own Starling ac, you would be aware that you could be  going over the £85k protection.

If they don't say that's the process, then I'd err on the side of safety.

Now, if it's aggregated funds in Raisin's name then your funds are not FSCS protected until they reach your chosen bank.

I agree that they do not spell it out on their webpage.

The T+Cs do state that deposits are made in to the customers current account with the Service Bank (Starling)

Im inclined to open a Raisin account in the interests of research to see what contractual info is provided.

Sea_Shell

Opens can of worms.....runs away!!

🤣🤣

Sorry!! 😇

noh

This is what MSE says

https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/#raisin

"Raisin UK accounts are provided by Starling Bank, which is regulated by the Financial Conduct Authority. When you add money to a Raisin account, before funding your chosen savings product, your funds will be covered by Starling's £85,000 Financial Services Compensation Scheme (FSCS) protection.

This gets complex, so stick with us. For the accounts above, payments are then automatically transferred via Meteor Investment Management (MIM), which passes your money to the bank offering the account you've chosen. It's then covered by that bank's £85,000 FSCS protection.

For the short time MIM holds your money, it's technically held in trust in a MIM client account with RBS. Yet the FSCS has confirmed in this type of structure you still get the UK £85,000 per person, per institution savings safety protection of the account provider (between leaving your Raisin UK account and arriving with the end bank, it's via RBS's protection).

We only feature UK-protected accounts in this guide, but be aware that not all banks Raisin has partnered with are covered by the FSCS – some are protected by European deposit schemes, so it could be harder to get your money back if the bank went bust."

soulsaver

That MSE statement still isn't enough for me, I'd at least want to see the words in the FSCS confirmation of their 'type of structure' protection.

I remain unconvinced and wouldn't touch it for a small increase in rate.

I'll be sticking with direct providers in the ToTPs unless something dramatically attractive comes along, then we can revisit the discussion. 

And obviously there's nothing stopping the offers being posted on this thread, when maybe we can give it another shake. :Thumb:

soulsaver

For me, as a 'saver' (as opposed to a forumite) my view is:

Too removed from the usual processes, too complicated, protection not clearly described on their web pages, not enough confidence that my funds are 100% protected 100% of the time and the rate vs the competition isn't attractive enough to tempt me.

typistretired

Raisin and all the Sharia accounts are a no no from me

Malchester

typistretired said:

Raisin and all the Sharia accounts are a no no from me

Never had a Raisin account, nor an account with any savings platform. They add a middleman where one is not needed. Most interest rates are lower than going direct and slower. They place an unnecessary step in the process of saving.

As for Sharia accounts I have had them with Gatehouse Bank (generally excellent and still have an account with them) and Al Rayan who are not as good