Shawbrook Bank - 1 Year Fixed ISA

suyintalks

Hi!

I've recently inherited 20k, which I'd like to invest into a fixed rate ISA, to hold safely. I'm looking at Shawbrook Bank's 1 year fixed rate ISA, because it has a good interest rate compared with others (especially high street banks). 

Question is -- I haven't heard of Shawbrook Bank before (to be fair, I'm new to investing), is it risky to invest in a competitor bank? What's people's experience with them been like? 

Thanks!

suyintalks

I guess the main question -- realistically in a year, the difference between 0.35% interest (Virgin Money Fixed ISA), and 0.93% (Shawbrook) is very minimal, so is it better to just go with Virgin Money? And both are still below inflation.

cattie

I've been using Shawbrook bank for some years now. Very happy with them, especially when they offer market leading rates.

As with most UK banks, you are covered for sums up to £85k by the FSCS, so no risk whatsoever.

Albermarle

There are many smaller banks that most people have never heard of . No problem with Shawbrook , in fact they have a good reputation.
Couple of other points though .
to be fair, I'm new to investing)
What you are talking about is saving not investing ( which refers to putting money in stocks and shares etc )

If you are a 20% taxpayer , you can earn up to £1000 in interest tax free per tax year even outside an ISA. So unless you have substantial savings you may well be better off in a non ISA account which tend to pay better rates of interest .
For example Shawbrook's one year fixed rate bond is paying 1.13% and some are paying up to 1.3%

Best 1 Year Fixed Rate Bonds Up To 1.55% Fixed | moneyfacts.co.uk

refluxer

I have no personal experience of Shawbrook but they seem like a respectable outfit and (most importantly) have FSCS protection. You'll be around £116 better off by taking a 1 Year Fixed Rate ISA with Shawbrook instead of Virgin so choosing that is a no-brainer, IMO. 

Virgin haven't had competitive fixed rate savings accounts for quite a while now - you can actually find better interest rates in easy access products elsewhere than they current offer in their fixed products.

The main question is do you definitely need the tax-free status a Cash ISA provides ? Are you earning close to your Personal Savings Allowance with interest from your other accounts ? If not, then the best standard 1 Year Fixed Rate account currently pays 1.35% which would earn you £270, compared with £186 in the Shawbrook ISA.

Malchester

Have used Shawbrook many times. Currently have 2 ISA's with them. Superb customer service on private message or telephone. Would recommend them

Edi81

You’re not investing. You are saving with them. 

SallySunshine

Another thumbs up for Shawbrook, been with them for years with all types of accounts.
Never any problems.