My community finance - 1.11% one year fixed.

MoJoeGo

Afternoon all - looking at helping someone open a 1 year fixed account today - saw the one linked below, but it's not in the best buy list on MSE - anyone know if there is a reason to be cautious here?

https://www.mycommunityfinance.co.uk/saving-products/fixed-term/S-0013?cu=mcb&aggr=MNYUK

ColdIron

There is a credit union prerequisite, do they satisfy the conditions?

Who can apply for a savings account?

You’ll need to be 18 or over, have a UK address (excluding the Isle of Man), and be eligible to become a member of one of the credit unions in our Community Finance Network.

You can become a member by meeting one of the following criteria:

• being a member of an applicable trade union or association (e.g. Coop, National Trust, UNISON)
• having an occupation that matches the membership requirements
• sharing a household with an existing member of My Community Bank or Castle Community Bank.

colsten

There is something odd about them.



Neither Amplifi Capital (UK) Ltd nor 08641995 seem to be on the FCA Register. Note the subtle differences in the spelling of the 'Amplifi' companies which are on the register.

You should research them further before committing any money to them. 

colsten

You can get 1.10% fixed at Gatehouse Bank, who are definitely 'proper'. Islamic bank, so they pay profit rather than interest.

https://moneyfacts.co.uk/savings-accounts/1-year-fixed-rate-bonds/?quick-links-first=false

colsten

Depending on how much you want to deposit, a 1.0% account via HL Active Savings might be of interest as they are paying a bonus to new customers.

MoJoeGo

Thanks for the responses. Between questions over eligibility and legitimacy, I'm not going to chase after this particular rate...

Colsten - agreed re Gatehouse but it won't fly with the individual I'm helping... 1.06% with Zopa or UBL will do for the sake of a few pounds interest either way...

colsten

If gatehouse won't fly because it's an islamic bank, UBL can't fly either. 

MoJoeGo

colsten said:

If gatehouse won't fly because it's an islamic bank, UBL can't fly either. 

No, it could go to the Bank of Cthulhu and Beelzebub as far as they are concerned, provided it was FCA/PRA regulated, FSCS protected, and most importantly had a clear and unambiguous guarantee on the rate.

I'm well aware of the mental gymnastics that goes on around 'expected profit rate' meaning that it's a bankers way to achieve Sharia compliance in letter if not in spirit. But it's not my money and for a mere few basis points difference in interest, it's also not worth my time and effort trying to explain it to others.

 If it were a full percentage point then maybe I'd try a bit harder...

Side note - I can see My Community Finance now in the MSE table so I guess it is at least legitimate. Sadly in this case, eligibility will be the sticking point.

Eyeful

 FSCS "check your money is protected website" 
   https://www.fscs.org.uk/check-your-money-is-protected/

 Type in :    My community finance        Indicates "not protected"   The FRN is 902841

colsten

MoJoeGo said:

Side note - I can see My Community Finance now in the MSE table so I guess it is at least legitimate. Sadly in this case, eligibility will be the sticking point.

Sorry but appearing on a random website, even if it is a well known one like MSE, does not mean a company is legitimate. 

The only reliable source is the FCA Register.

colsten

Eyeful said:

 FSCS "check your money is protected website" 
   https://www.fscs.org.uk/check-your-money-is-protected/

 Type in :    My community finance        Indicates "not protected"   The FRN is 902841

Good spot.

I suspect it might be the underlying Credit Unions who actually hold the money who provide the FSCS protection as they state on their website "Savings accounts offered by credit unions in our network are protected by The Financial Services Compensation Scheme (FSCS) up to a value of £85,000 per person." But is is all highly confusing, and they will not see one penny of my money.