My Community Bank

houseowner

I have a fixed rate bond maturing soon and have come across 'My Community Bank' offering 2.35% for 24 months. Seems good compared to the known banks. I believe they are linked to credit unions but can't find much about them. Anyone know anything about them please?

george4064

It looks like its 2.35% in total over the 2 year fixed account, equates roughly 1.175% per annum interest which isn't great at all.


Also note that you are not directly protected by the FSCS protection scheme, someone else should be able to better explain what this might mean for you but personally I wouldn't go near based on the poor interest on offer and the indirect FSCS protection. (Effectively you would be much more secure if the company had FSCS protection itself rather than being a subsidiary of a company that has FSCS protection).

In addition, on FSCS's website (https://protected.fscs.org.uk/tools/check-your-money-is-protected/) I can't seem to find either My Community Bank or Brent Shrine Credit Union Ltd on their website, which only raises my suspicions.

My Community Bank is the trading name of Brent Shrine Credit Union Ltd. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Reference number 213245. Member of Association of British Credit Unions Limited.

© My Community Bank 2014.

houseowner

Thank you George, it looked to good to be true! Didn't realise the rate was overall not per year. I'll steer well clear and look again the usual crew.

Thanks again.

george4064

houseowner wrote: »

Thank you George, it looked to good to be true! Didn't realise the rate was overall not per year. I'll steer well clear and look again the usual crew.

Thanks again.

Best savings accounts here: http://www.moneysavingexpert.com/savings/savings-accounts-best-interest

eskbanker

george4064 wrote: »

It looks like its 2.35% in total over the 2 year fixed account, equates roughly 1.175% per annum interest which isn't great at all.

https://www.communitybanknetwork.co.uk/faqs states:

What is AER?

AER – short for Annual Equivalent Rate – illustrates what the interest rate would be if interest were paid and compounded once each year.

Every advertisement for a savings product which quotes an interest rate will contain an AER, to allow you to compare more easily what return you can expect from your savings over time.

so while I agree it's far from clear, I'd conclude that, in the absence of multiple representations being shown, the 2.35% is an annual rate, especially when they're offering 1.90% for a one year fix!

george4064 wrote: »

Also note that you are not directly protected by the FSCS protection scheme, someone else should be able to better explain what this might mean for you but personally I wouldn't go near based on the poor interest on offer and the indirect FSCS protection. (Effectively you would be much more secure if the company had FSCS protection itself rather than being a subsidiary of a company that has FSCS protection).

https://www.communitybanknetwork.co.uk/faqs states:

How is my money protected?

We are covered by the Financial Services Compensation Scheme (FSCS).

Under this scheme, the FSCS will compensate depositors, if a credit union is unable to meet its financial obligations to its depositors. Most depositors – including most individuals and small businesses – are covered by the scheme.

george4064 wrote: »

In addition, on FSCS's website (https://protected.fscs.org.uk/tools/check-your-money-is-protected/) I can't seem to find either My Community Bank or Brent Shrine Credit Union Ltd on their website, which only raises my suspicions.

Brent Shrine show as being FSCS-covered at that site when I key it in.

As far as the FCA is concerned, they appear to see Brent Shrine Credit Union Limited and My Community as effectively synonymous rather than parent and subsidiary if that's what you were suggesting: https://register.fca.org.uk/ShPo_FirmDetailsPage?id=001b000000MfM5LAAV

Not trying to defend them here, but they do at least appear legitimate and protected....

george4064

@eskbanker, fair enough. The FSCS website was playing up a bit when I using it so I'm not overly surprised you managed to find Brent Shrine Credit Union Ltd on there.


And noted on the AER bit, the website is a bit thin in explaining whether this is an overall rate or an annual one!

Zanderman

houseowner wrote: »

Thank you George, it looked to good to be true! Didn't realise the rate was overall not per year. I'll steer well clear and look again the usual crew.
Thanks again.

George is completely wrong and is misleading you. Don't thank him!

As Eskbanker says, this is all legit, suggestions otherwise are (unwarranted, and still uncorrected) scaremongering.

It's a Credit Union, fully protected.

And interest rates are AER.

Zanderman

And, to add to my comment above, for a bit more info on My Community Bank have a look at this thread:

https://forums.moneysavingexpert.com/discussion/5975007/my-community-bank-brent-shrine-credit-union

Note the caveats that Credit Unions do go bust now and then, but also that you are fully protected, up to 85k, even if they do.

Some are very low interest (my local one only pays very modest divvies to savers), others are competitive - e.g RetailCURE Credit Union offer (all maxed out now) good rates a year or so ago.

All only accept people if they are part of a Common Bond - usually a geographic area or profession. My Community Bank have an unusually broad Common Bond, so are more accessible to more people.

Zanderman

And, just to re-emphasise all the points above:

I've queried this with My Community Bank - and they confirm all interest rates are AER.

They also suggested using their new (apparently - though you'd think they could link the old site direct to it) website which is at https://www.mycommunityfinance.co.uk/savings

This is more explicit than the one referenced above - and does confirm the AERs.

(George, you really should correct your post suggesting they're not protected and they're not AER - it's not at all helpful and you may have done the OP out of a load of interest)

(By the way, I'm not defending My Community Bank's rather shoddy original website, just trying to make sure the info in response to the OP is actually accurate and thought-through, not spontaneous and misleading)