How do you rate these savings institutions? Smartsave, Zopa, Investec, Charter, Tandem?

janusd

masonic said:

I'm happy to take the plunge with any unfamiliar provider as long as they meet key criteria such as having clear FCA authorisation and FSCS protection (tend to avoid complex chains of counterparties providing the services), and reasonable terms.

I would agree with that.

masonic said:

Zopa is also fairly standard, one thing that is a bit different is that you can make deposits for 14 days after applying and the term starts at the end of those 14 days (interest is earned from the date of deposit). The application process is one of the best I've encountered.

of the five on that list, the only one i've had dealings with (in terms of fixed rate savings) would be Zopa - as masonic says, the application process is simple.

i've got two two-year fixed accounts with Zopa - only intended to have one, but they changed the rates significantly as I was funding the first account... they wouldn't update the rate paid on that account (no issue with that but thought it worth asking - especially as the term hadn't yet started*), so opened a second account at the newer rate.

* off-topic, but the only bank that i've come across that did update their rate on a newly opened fixed-rate account, during the 14-day funding cycle, was Hodge Bank - but the difference in the rates was trivial and I think only amounts to a £40 interest gain after one-year... so unexpected (I asked, but they said not - but logged in the next day to find the rate had been updated to the new higher rate).... a nice gesture by them - though possibly influenced by the funding method.

getting back to Zopa, interest is shown monthly in the account so you can see how much it's earning.

also worth noting that with Investec, you will definitely require valid photo ID (passport, driving license etc) in order to open any account with them directly.. that's not been the case with any other savings provider that i've come across so far.

SeriousHoax

I had an account with charter a few years back and found them to be ok with a good customer service.

Albermarle

bristolleedsfan said:

masonic said:

bristolleedsfan said:

masonic said:

Zopa is also fairly standard, one thing that is a bit different is that you can make deposits for 14 days after applying and the term starts at the end of those 14 days (interest is earned from the date of deposit).

Most of these types of Banks operate that policy, Cynergy Bank rare exception they require funds within 2 days of application, however they allow 14 day cooling off period within which if cancel they pay interest for the time they had the funds

My experience has been different, but then again over the past few years I've tended to go with the Sharia banks like BLME, Al Rayan, Gatehouse etc. where the rates were highest. All of these require the amount of funds stated in the application (which can be spread over more than one transfer if you are subject to a transaction limit), and more funds cannot be added once this balance has been received.

I have been looking at terms and conditions of several  best buys fixed rates over the course of last 3 weeks

Earlier this year , there was a thread where customers where able to add further funds to a fixed term account a long time after opening,  and even benefit from an interest rate level that had long disappeared from the market.
I think it was Shawbrook but I can not remember for sure.
Nobody really believed it, but a number of posters confirmed they were able to do it .
The providers T's & C's said something like - additional funds could be added at any time until the offer was closed, with no specific time limit mentioned.  Unusual to say the least !

P933alilli

Ive had accounts with Charter, Shawbrook and Paragon and all were fine. Some confusion with Zopa offering what i thought was monthly income from their fixed rate bonds but when you look closely its just paying monthly interest into the account which is compounded. Another queary for me on many fixed rate bonds is why the maximum allowed savings are £250,000 when only £85000 is FSCS protected?

Albermarle

Collyflower1 said:

Ive had accounts with Charter, Shawbrook and Paragon and all were fine. Some confusion with Zopa offering what i thought was monthly income from their fixed rate bonds but when you look closely its just paying monthly interest into the account which is compounded. Another queary for me on many fixed rate bonds is why the maximum allowed savings are £250,000 when only £85000 is FSCS protected?

The savings provider can set their own maximums that suits their business model/strategy.

The FSCS compensation limit is set by the government . The two things are unrelated.

fleemkt

DireEmblem said:

How have you shortlisted these companies already, as for example Hargreaves have their 'Active Savings' Product, not sure if any of these are 'suitable', or have you maxed out the 2% interest on a Virgin bank account up to £1000.

Just by having a quick look at This Is Money's list the other night.

Thanks everyone for your thoughts and experiences with these providers. 

fleemkt

janusdesign said:

also worth noting that with Investec, you will definitely require valid photo ID (passport, driving license etc) in order to open any account with them directly.. that's not been the case with any other savings provider that i've come across so far.

I was going to ask about Investec in this regard.  Is it a straightforward affair.

I'd imagine you'd have to download their app to scan in your photo ID?

fleemkt

Regarding Tandem, are there any more thoughts on Open Banking?