Credibility of ISA providers

MDTDTD

I want to transfer my ISA to another provider due to a drop in rates. I'm currently with Coventry building society.

I'm considering transferring to Shawbrook bank and Family building society or possibly throwing my money into the Post Office or Charter Savings bank, I understand all of these institutions are covered by the FCSC £85,000 savings protection.

What are peoples experiences with these institutions. I just want to get the best rates with a reliable provider.

I also need to split my existing ISA between at least 2 providers due to the £85,000 savings protection.

Thanks for any answers

colsten

Apart from the Post Office, I would use any that have the £85K FSCS cover. PO are a shambles, both from a systems and from a CS point of view.

FairyCarol

We invested in a 3 Year ISA with an interest rate of 9% about a year ago. We have just had a letter to say that the company have been put into Administration by order fo the court. They said that they would contact us again mid June to let us know what is happening. We are pensioners (in our 70's) and this is our only savings. Is there any advice that you can offer to try and safe our money

Alexland

Oh dear sounds like you fell for a mini bond scam as there was nothing legitimate paying anywhere near 9% a year ago. Can you name the company and how you found it? As rates have been dropping these types of schemes seem to be promising around 5% now. Of course the percentage doesn't matter  if they don't return your money - it's just to make it almost believable as a good deal.

afis1904

FairyCarol said:

We invested in a 3 Year ISA with an interest rate of 9% about a year ago. We have just had a letter to say that the company have been put into Administration by order fo the court. They said that they would contact us again mid June to let us know what is happening. We are pensioners (in our 70's) and this is our only savings. Is there any advice that you can offer to try and safe our money

This sounds like an innovative finance ISA which is not FSCS protected. Make sure you check that that is what you took out. If it is you're unlikely to get all your money back.

MDTDTD

FairyCarol said:

We invested in a 3 Year ISA with an interest rate of 9% about a year ago. We have just had a letter to say that the company have been put into Administration by order fo the court. They said that they would contact us again mid June to let us know what is happening. We are pensioners (in our 70's) and this is our only savings. Is there any advice that you can offer to try and safe our money

Do you know whether the provider was covered by the FCSC?

MDTDTD

I have a hypothetical scenario.

If I deposited money with an institution who were FCSC covered in April 2020 but for whatever reason they were withdrawn in May 2020 and I didn't realize this until January 2021 and the institution announces that it's gone out of business.

What would happen to my money in this scenario? Would I lose my money? And is it a wise move to keep track of the FCSC status of the institutions you have desposited money with?

masonic

MDTDTD said:

I have a hypothetical scenario.

If I deposited money with an institution who were FCSC covered in April 2020 but for whatever reason they were withdrawn in May 2020 and I didn't realize this until January 2021 and the institution announces that it's gone out of business.

What would happen to my money in this scenario? Would I lose my money? And is it a wise move to keep track of the FCSC status of the institutions you have desposited money with?

The only way an FCA authorised firm with permission to take deposits can withdraw from the FSCS scheme is if they switch to protecting the money via an alternative EU compensation scheme. It seems unlikely a firm would do this, and if it did it would be required to inform you in advance of the change. If the FCA/PRA decided that a firm should no longer be eligible to take deposits (and thereby offer FSCS protection), then it would need to take enforcement action against the firm which would likely involve an FSCS payout to the extent those deposits had previously qualified for protection, if they could not be repaid.

dunstonh

Alexland said:

Oh dear sounds like you fell for a mini bond scam as there was nothing legitimate paying anywhere near 9% a year ago. Can you name the company and how you found it? As rates have been dropping these types of schemes seem to be promising around 5% now. Of course the percentage doesn't matter  if they don't return your money - it's just to make it almost believable as a good deal.

It should be noted that your comment is about a mini-bond scam and not relevant to the subject in this thread. It would be better that you post on your own thread and not on this one as you alrady have two responses (3 if you count this) on your subject and that risks taking the thread off topic and leaving the original poster with their questions unanswered.  This is known as thread hijacking and considered rude.   Start a new thread of your own and your question can be answered there.

Alexland

dunstonh said:

Alexland said...

It should be noted that your comment is about a mini-bond scam and not relevant to the subject in this thread.

I am assuming that feedback was for FairyCarol not me?

dunstonh

Alexland said:

dunstonh said:

Alexland said...

It should be noted that your comment is about a mini-bond scam and not relevant to the subject in this thread.

I am assuming that feedback was for FairyCarol not me?

It certainly was.  I was going to add something to yours but then realised the FairyCarol was not the OP and changed my response.  I forgot to edit the quote.