Shawbrook Bank

eskbanker

2010 said:

I can`t see where Shawbrook are currently offering 1.15%, maybe you could provide a link.

They said over 1.15% rather than exactly 1.15%, and https://www.shawbrook.co.uk/direct/savings/personal-savings/fixed-term-accounts/ lists accounts at 1.25% and 1.35%.

bowlhead99

HUMBUG said:

There have been a glut of poor reviews on Trustpilot and worries about an 80+ % drop in profits, plus  some 'County Court Judgement ' against them for some piddly amount . 

Trustpilot has negative reviews for all banks as people often only write a review of their bank when they want to grumble about something and have complained; relatively few people can be bothered signing up to a review site just to say the service was fine or good. However as it happens, from 1000 reviews, 80% say excellent or great. The 200 people who were less enthusiastic and want to moan about something will represent a very small proportion of their total business and personal customer base.

A drop in profits is to be expected for all banks as net lending margin falls with lower interest rates and provisions for bad debts during times of uncertainty. We can tell from the fact you said 'some piddly amount' - a dismissive term for the derisory punishment - that you probably don't really believe that a small county court judgement is at all a risk to you the customer when the bank has ten billion of assets and nine billion of customer deposits, equity and loan finance.

Smaller banks are now giving me the 'Heebie Jeebies'. 
I was extremely lucky to get my money back when Icebank folded many years ago (wasn't covered by FSCS ) and thank you Alistair Darling for paying back all our monies and interest (I didn't lose a penny). 

Right, you had taken a risk by using a bank without FSCS coverage so when that foreign bank folded you really needed the government's generosity to get you paid out. In this case however, it does have FSCS coverage so you don't need to go cap in hand to the government if the bank goes under; the FSCS will pay you out and all the other banks will be forced to chip in to repay the FSCS, which will cost their customers instead.

The advertised rates over 1% are only available for newly-opened on the 5 or 7 year fixed term accounts; the other accounts have reduced their rates to ensure they don't overpay too much for customer money in this low-interest environment while still wanting to retain a large number of customers as a 'challenger' bank.

 I was tempted at the time by the 6% interest rates they were offering which was way above the norm , so seeing Shawbrook offer over 1.15% interest rates when there are rumours of them going negative made me think twice.

It's always good to think twice, but if you thought a third time you might reflect and consider that abandoning the account for one that paid a lower interest rate (and could still go bust and need an FSCS bailout) just because you noticed the profits had fallen and someone was bleating about them on trustpilot, is not necessarily the smartest course of action.

Please move your money to Lloyds. The savings rates are really low, but I am a shareholder and want to keep getting my dividend yield on the preference shares (over 6.6% at last glance)

HUMBUG

2010 said:

HUMBUG said:

There have been a glut of poor reviews on Trustpilot and worries about an 80+ % drop in profits, plus  some 'County Court Judgement ' against them for some piddly amount . 
I was going to renew my savings with them because the fixed rates were over 1% but now opted to move elsewhere , maybe to a larger bank or building society that might be able to cope with a downturn in profits for the next year . Smaller banks are now giving me the 'Heebie Jeebies'. 
I was extremely lucky to get my money back when Icebank folded many years ago (wasn't covered by FSCS ) and thank you Alistair Darling for paying back all our monies and interest (I didn't lose a penny).  I was tempted at the time by the 6% interest rates they were offering which was way above the norm , so seeing Shawbrook offer over 1.15% interest rates when there are rumours of them going negative made me think twice.

Think you`ll find you are covered with Shawbrook by the FSCS for £85k 
https://www.fscs.org.uk/
I can`t see where Shawbrook are currently offering 1.15%, maybe you could provide a link.

The offering was specific to existing savers on maturity of their old savings account . I know they are covered by FSCS but I'm not convinced we will get our money back if there is a 'run' on banks (especially if several small ones start to fail ). I think the larger ones might be in a stronger position to survive the inevitable crisis where many people will be defaulting on their loans.
PS. 
Bowlhead99 said below:
"Right, you had taken a risk by using a bank without FSCS coverage so when that foreign bank folded you really needed the government's generosity to get you paid out. In this case however, it does have FSCS coverage so you don't need to go cap in hand to the government if the bank goes under; the FSCS will pay you out and all the other banks will be forced to chip in to repay the FSCS, which will cost their customers instead."

Who says the banks will be forced to chip in?  What if they say "we can't because we don't have the money"?

greatcrested

HUMBUG said:

2010 said:

HUMBUG said:

There have been a glut of poor reviews on Trustpilot and worries about an 80+ % drop in profits, plus  some 'County Court Judgement ' against them for some piddly amount . 
I was going to renew my savings with them because the fixed rates were over 1% but now opted to move elsewhere , maybe to a larger bank or building society that might be able to cope with a downturn in profits for the next year . Smaller banks are now giving me the 'Heebie Jeebies'. 
I was extremely lucky to get my money back when Icebank folded many years ago (wasn't covered by FSCS ) and thank you Alistair Darling for paying back all our monies and interest (I didn't lose a penny).  I was tempted at the time by the 6% interest rates they were offering which was way above the norm , so seeing Shawbrook offer over 1.15% interest rates when there are rumours of them going negative made me think twice.

Think you`ll find you are covered with Shawbrook by the FSCS for £85k 
https://www.fscs.org.uk/
I can`t see where Shawbrook are currently offering 1.15%, maybe you could provide a link.

.....I know they are covered by FSCS but I'm not convinced we will get our money back if there is a 'run' on banks (especially if several small ones start to fail ). I think the larger ones might be in a stronger position to survive the inevitable crisis where many people will be defaulting on their loans.
....

The risk is that the government will fail. If that happens, we're all ****ed and having savings of any kind (gold perhaps?) will help no one.

But as long as the gov/bank of Eng is still operating, your savings to £85K will be OK

colsten

greatcrested said:

HUMBUG said:

2010 said:

HUMBUG said:

There have been a glut of poor reviews on Trustpilot and worries about an 80+ % drop in profits, plus  some 'County Court Judgement ' against them for some piddly amount . 
I was going to renew my savings with them because the fixed rates were over 1% but now opted to move elsewhere , maybe to a larger bank or building society that might be able to cope with a downturn in profits for the next year . Smaller banks are now giving me the 'Heebie Jeebies'. 
I was extremely lucky to get my money back when Icebank folded many years ago (wasn't covered by FSCS ) and thank you Alistair Darling for paying back all our monies and interest (I didn't lose a penny).  I was tempted at the time by the 6% interest rates they were offering which was way above the norm , so seeing Shawbrook offer over 1.15% interest rates when there are rumours of them going negative made me think twice.

Think you`ll find you are covered with Shawbrook by the FSCS for £85k 
https://www.fscs.org.uk/
I can`t see where Shawbrook are currently offering 1.15%, maybe you could provide a link.

.....I know they are covered by FSCS but I'm not convinced we will get our money back if there is a 'run' on banks (especially if several small ones start to fail ). I think the larger ones might be in a stronger position to survive the inevitable crisis where many people will be defaulting on their loans.
....

The risk is that the government will fail. If that happens, we're all ****ed and having savings of any kind (gold perhaps?) will help no one.

But as long as the gov/bank of Eng is still operating, your savings to £85K will be OK

FSCS is not a Government scheme. https://www.fscs.org.uk/about-us/funding/

whitesmith

Agree with Colsten - in fact if you want government backing then NS&I is the place to be. I suppose in the event of a general failure, the FSCS could run out of money and NS&I would be the only ones paying out - probably in printed money.

eskbanker

Perhaps worth noting that FSCS does ultimately have access to government funding if necessary, on a repayable loan basis, as seen in the 2008 financial crisis:

During the crisis, we had to borrow a large amount of money from HM Treasury so we could pay compensation quickly and not leave customers out of pocket.

The levy had to fund the interest on this loan while we made recoveries. The money we recovered from the failed banks paid back the vast majority of the money we borrowed:

• We paid out £20.9bn in compensation as a result of the crisis.
• We recovered £20bn from the failed banks.
• The levy covered the £0.9bn shortfall and £3.5bn interest.

ranciduk

I’m thinking of moving some cash out of a poor TSB savings account I’ve had for years earning nothing 

Shawbrook seem like a well respected bank and I may want to put some money in a fixed bond

I never opened one of these online bank accounts before 

once I setup an account etc - how do I transfer from TSB?

i don’t use online/internet banking with TSB - I just use telephone banking

i am hoping that you login with Shawbrook then using my TSB debit card details I can make a deposit?

i.e the same way you make deposits to Ns&i when buying premium bonds- or when buying funds online with Vanguard 

is this how it works?

or do you have to use online banking via TSB to make the deposits?

if so , this doesn’t appeal to me as I don’t want to use mobile/online banking with TSB 

Daliah

No debit card deposits into Shawbrook, I am afraid. You have to transfer your money from the account you have nominated in Shawbrook (it must be the account you will eventually use for withdrawals from Shawbrook). Once it is there, you can transfer it to your Shawbrook account. Whether you make the transfer yourself via online/app/telephone banking or ask your bank to transfer doesn’t matter. It just has to be transferred electronically. https://www.shawbrook.co.uk/direct/savings/help/faq/personal-savings/how-do-i-make-a-deposit-into-my-savings-account/

Billycock

ranciduk said:

I’m thinking of moving some cash out of a poor TSB savings account I’ve had for years earning nothing 

Shawbrook seem like a well respected bank and I may want to put some money in a fixed bond

I never opened one of these online bank accounts before 

once I setup an account etc - how do I transfer from TSB?

i don’t use online/internet banking with TSB - I just use telephone banking

i am hoping that you login with Shawbrook then using my TSB debit card details I can make a deposit?

i.e the same way you make deposits to Ns&i when buying premium bonds- or when buying funds online with Vanguard 

is this how it works?

or do you have to use online banking via TSB to make the deposits?

if so , this doesn’t appeal to me as I don’t want to use mobile/online banking with TSB 

Set up your online bank as your nominated account with Shawbrook, i.e. the same bank as you transfer funds into your Vanguard account. Then telephone banking from TSB into your nominated online bank, once transferred, your nominated online bank into Shawbrook Bank.