The Top Fixed Interest Savings Discussion Area

trickydicky14

LJ._2 said:

Frequentlyhere said:

Can't help but continue to wonder why smartsave have shot themselves in the foot with their own "1 bond per customer" rule, whilst needing to offering table-topping rates to attract new customers.

Their website says "We’ve made the decision that customers can only have one SmartSave savings account at a time. This is so that you’re guaranteed not to exceed the £85,000 FSCS compensation protection, meaning all of your savings are protected"

Which is a rather weak justification given that if they're able to stop you depositing >£85k with one account then why not with more than one? 

Besides which, many/most other providers seem perfectly comfortable with treating their depositors like adults and allowing them to deposit much more than that if they wish. 

My guess is that the real reason is that they just haven't invested in the website enough to have the functionality to cope with it. 

Bizarre though as it also obviously hugely increases the number of customers they have to deal with and therefore their costs rather than garnering lots of repeat depositors with existing accounts.

I think it shows that Smartsave are not being reckless with investors money. If you had two accounts with say £85,000 in each and Smartsave went bust, you would only get ONE refund of £85k not for both. Maybe this is why they only allow you one account.

Talk about a nanny state, so to protect the few with more money than sense all the rest of us can only have one account, most will never have 85k to put into savings accounts. If folks are stupid to the point they put more than 85K in a savings account they have to put up with the risk. What next, we need to get a doctors note before we can open an account.

happybagger

It's an interesting, and in my view bizarre, decision to only allow one account. Many banks and building societies have limits on total savings without a 'one account only' policy.

What if someone has 10k to invest now and another 10k in 12 months?
What if someone does indeed have 85k but wants to split it into three terms to hedge their bets on rates?

The message is clear - go elsewhere.

I have been put off opening any smartsave bonds in case it precludes me having an account at some time in the future when they could be out on their own at the top of the tables, rather than their current policy of going top+0.01%

ToastLady

Seems totally bizarre to me too, as if you are already a customer and are quite happy with the service, you'd be more likely to use them again, rather than some bank you didn't know. I've often stuck to the same banks where I have had no trouble, even if it does mean I lose 0.01% interest. Doesn't apply to me anyway, as for some unknown reason, they didn't let me open an account a wee while ago, and certainly not trying again.

alternate

If it were really a customer protection thing they could just limit customers to 85k across all accounts.

VNX

Sorry if I am being cynical but an institution that makes profit from borrowing and lending being so charity minded to only let someone have one account as to protect themselves, I don’t buy it.

Cain42

Can’t see anyone mentioning the Investec 90 days locked in at 4.25%, they don’t seem to have their saving accounts supported by the App, is there any other alternative for 3 months fixed (especially app supported)?

TheBanker

Cain42 said:

Can’t see anyone mentioning the Investec 90 days locked in at 4.25%, they don’t seem to have their saving accounts supported by the App, is there any other alternative for 3 months fixed (especially app supported)?

Hargreaves Lansdown Active Savings have a three month fix paying 4.73% from Bank of London and the Middle East, minimum deposit £1k. It's not really app supported (you can view Active Savings in their app but not perform any transactions). It closes today though so you'd have to be quick. 

Not sure if BLME offer the same rate directly. 

jaypers

Investec 1 Year Fixed now 5.35%

Sea_Shell

Al Rayan 1 yr @ 5.36% (via Raisin)
Minimum £5k

moi

TheBanker said:

Cain42 said:

Can’t see anyone mentioning the Investec 90 days locked in at 4.25%, they don’t seem to have their saving accounts supported by the App, is there any other alternative for 3 months fixed (especially app supported)?

Hargreaves Lansdown Active Savings have a three month fix paying 4.73% from Bank of London and the Middle East, minimum deposit £1k. It's not really app supported (you can view Active Savings in their app but not perform any transactions). It closes today though so you'd have to be quick. 

Not sure if BLME offer the same rate directly. 

BLME directly :

3 Months 

4.50% Gross Annual Rate

4.58% AER*

(6 months directly is
4.7% Gross
4.76% AER)