Online only banks, Atom ZOPA etc

SydSnott

Attempting to squeeze the best out of my savings, I have decided to venture into the scary world of online only accounts!
First foray was Atom and having downloaded the App to my phone, I was irked to find that they would not proceed with the install until I had set up and activated the phone's security features and I had to uninstall it to start again!
My view is that they should take care of their own app security and allow me to do the same.
The account I was wishing to open was a one year fixed rate account to which I (or for that matter anyone else) would have no access what so ever until the account matured.

On top of this, the very day I had taken this step, the bank was in a state of meltdown over spurious messages received by savers who were then not able to communicate with the Bank.
Sounds a bit flaky.

Next on the horizon is ZOPA, having looked them up on the FSCS site, it seems they are not covered by the savings protection scheme!
I might be wrong there because the FSCS site is somewhat obscure.
Following a link from the SOPA Site, it seems they are indeed covered, but I would have more confidence if that information was directly available to me.
Are they covered by the scheme?
Any advice would be gratefully received.

jimjames

Zopa is not a savings account. If you are worried about online accounts being scary then a peer to peer investment with the possibility of capital loss might not be your thing. 
Edit - just seen they do savings too.
Really depends if you are investing or saving though. Saving is covered, investment is not as per below.
  https://www.zopa.com/invest

• Fully regulated by the Financial Conduct Authority
• Not protected by the Financial Services Compensation Scheme

Albermarle

Virtually all banks and financial institutions operate on line savings and currents accounts nowadays , not sure there is any particular advantage to being online only .
So you should first look where the best savings rates are .https://moneyfacts.co.uk/savings-accounts/

epm-84

Albermarle said:

Virtually all banks and financial institutions operate on line savings and currents accounts nowadays , not sure there is any particular advantage to being online only .

Online only accounts have lower costs for the banks so quite often offer a slightly higher interest rate than accounts which allow you to access them by branch. Virgin Money are usually a good example of a bank offering better rates for online only accounts than branch based accounts.

Some of the online only banks are challenger banks like Starling so offer incentives to get customers to use them ahead of traditional banks. No charge for using your card for foreign currency transactions is Starling's main selling point.

The disadvantage of online only accounts is if you can't get online for whatever reason. However, if that's due to a fault with the bank's website or app then they'll normally allow you to phone them up to complete the transaction instead.

SydSnott

Thanks guys,
I do have savings with several "Online only" accounts/banks, the scary thing about Atom was that it was exclusively via an "App", I detest the dratted word; I consider to be a "pseudo word" and not it seems without good reason if earlier this week was anything to go by!
Their App's intransigence deterred me from further consideration. However, I wonder just for devilment, if one could activate the phone's security in order to "appease the App into submission", and then disable said security since it really is a nuisance, having to make eyes at you phone all the time! After all, there is nothing you can do with the "App" except look at your account!

Checking one year fixed rate savings accounts, ZOPA seems to come out tops at 0.86%, I really can't believe I just said that!! Such are the times we live in. It was the company's involvement in Peer to Peer lending which unsettled me into needing absolute confirmation of their cover under the FSCS compensation scheme.
I think that question is now answered, thanks.


 

moneysavinghero

Zopa were originally a peer-to-peer platform. This side of the  business still exists and is NOT covered by the FSCS.
They have also recently opened a mainstream bank with a normal savings account. This IS covered the by the FSCS.

clowning

I have held accounts with Atom for a number of years and never had any problem. I was aware there had been some sort of glitch last week but I wasn't affected and I understand they have paid compensation to those that were.

Albermarle

epm-84 said:

Albermarle said:

Virtually all banks and financial institutions operate on line savings and currents accounts nowadays , not sure there is any particular advantage to being online only .

Online only accounts have lower costs for the banks so quite often offer a slightly higher interest rate than accounts which allow you to access them by branch. Virgin Money are usually a good example of a bank offering better rates for online only accounts than branch based accounts.

Some of the online only banks are challenger banks like Starling so offer incentives to get customers to use them ahead of traditional banks. No charge for using your card for foreign currency transactions is Starling's main selling point.

The disadvantage of online only accounts is if you can't get online for whatever reason. However, if that's due to a fault with the bank's website or app then they'll normally allow you to phone them up to complete the transaction instead.

Yes you are right . I think what I meant to say was that there are plenty of banks, including smaller ones with better interest rates , that you can access via your computer , but not necessarily by an app only.

Preacher64

As mentioned above, one minor glitch in two years with Atom and they’ve sent an apology via email and credited account holders with £15 by way of apology. I’ve been happy with their service and reliability and wouldn’t discourage anyone from joining them if they identify a suitable and competitive account.

SydSnott

Thanks for your advice folks, decided on Zopa since that way I didn't have to involve my Mobile phone!
...or so I thought.
The set up process requires a mobile number, I gave my Landline expecting rejection, but it was accepted.
Sadly though, it seems that TalkTalk no longer support "spoken text" delivery, can't  understand that backward step especially with the rise in two stage verification.
So, since it seems that TT are dinosaurs, to continue the wildlife theme, looks like I'm goosed!   
I'll have to offer up my mobile number despite being totally unable to interact with my funds due to the very nature of a FIXED term investment!

csgohan4

Used starling for years and use their business accounts too. Free and easy too, win win.  No issues either