How safe are app-only banks?

scoot65

Many thanks for the replies. Particularly masonic's very detailed reply.

Neil49

kuepper said:

I'm less worried about hacking but more about what would happen if they went bust or if I died. I know about the £85k limit but as they're app only how would I be able to prove I had money with them if they went bust as presumably the app would no longer be functioning? Also if I died how would anyone know I had money with them as my phone would be locked?

I can only comment on Monzo but in their case you can also log on to your account via a website address. It only has limited functionality but that should suffice got your purposes. 

[Deleted User]

I remember when Icesave went bust (remember them?) I got my money back very easily without having to prove to anyone that I had an account first. Although I did have to sign over the rights of my account to UK Gov to get the money.

masonic

Deleted_User said:

I remember when Icesave went bust (remember them?) I got my money back very easily without having to prove to anyone that I had an account first. Although I did have to sign over the rights of my account to UK Gov to get the money.

Yes, I did too, but I consider myself very fortunate in that instance as Icesave was not fully covered by the FSCS (in fact, having less than £16k saved there, none of my money would have been covered). Just a little reminder of how things originally appeared: https://www.theguardian.com/money/2008/oct/07/savings.banks1

I'm still grateful to Alistair Darling and the Treasury for their intervention, and have never since deposited money anywhere that isn't covered by the FSCS.