Aldermore Bank

susanann_2

I am thinking of opening and transferring some savings into Aldermore Bank Double Access Account Issue 1 as it’s the second highest rate currently. How have people found them, any problems etc. I’ve seen this bank around for awhile now but it’s not one I have really heard of so was concerned they are okay. I know it has the FSCS but would hope to avoid ever having to use that. 

eskbanker

If you use the search function you'll find plenty of threads where they're discussed, such as this one from last week:

https://forums.moneysavingexpert.com/discussion/6352855/aldermore-bank

and this older one: https://forums.moneysavingexpert.com/discussion/6225517/aldermore

ColdIron

As I wrote in the thread linked to by eskbanker I have been using them since 2012, they're fine. I've just opened that Double Access account (my 3rd in the last 12 months)

You won't get a personal sort code and account number as such, you make deposits to a common or pooled account and identify your personal account with its 7 character account number (and the first 3 characters of your last name) in the reference, just follow the instructions (you can use the 9 character opening ref until you get it)

Withdrawals are not instant but usually the same day, but how often will you be withdrawing from a double access account?

susanann_2

Me being very nervous of banks I'm not familiar with,  Is that actually safe making deposits to a pooled account with your account number. I’ve never come across that before. 

Daliah

susanann_2 said:

Me being very nervous of banks I'm not familiar with,  Is that actually safe making deposits to a pooled account with your account number. I’ve never come across that before. 

Dozens of savings accounts work like this. It is perfectly safe to make deposits as long as they offer FSCS protection which the Aldermore account, along with more or less all other savings accounts, obviously does.

ColdIron

susanann_2 said:

Me being very nervous of banks I'm not familiar with,  Is that actually safe making deposits to a pooled account with your account number.

Yes it's safe, just follow the instructions and you can't go wrong. If you somehow fail to copy and paste your details they will return your deposit

I’ve never come across that before.

You may be unfamiliar with the process but it's how many of the more established challenger banks have operated for quite some time now

Albermarle

Me being very nervous of banks I'm not familiar with

The big well known banks play on this fear, and get away with offering very poor value savings products .

These smaller banks , that many have never heard of , offer much better rates of interest and are covered by the same FSCS compensation scheme , just is case anything goes wrong .

My own experience with Aldermore has been excellent .

kaMelo

I've been using Aldermore since 2016, excellent service all round. Like @ColdIron says, follow the instructions carefully on how to pay in and all will be well.

Thrugelmir

susanann_2 said:

Me being very nervous of banks I'm not familiar with,  Is that actually safe making deposits to a pooled account with your account number. I’ve never come across that before. 

Secondary banks are not clearing banks. As a consequence they use a clearing bank to process to settle and their transactional activity. Secondary banks are highly regulated just like their big brothers. 

susanann_2

Thanks everyone for your kind replies. I think I must really dip my toe into some of these newer unheard of banks as they are paying such better rates. I am looking at Chase Bank as well not sure if they use the same format for paying in. None of my current savings are earning more than 0.84-1% so I can do a lot better,  but have always been nervous of the ones I’ve not heard of but as you say they play on this fear and offer not such good rates.  

Albermarle

There are a lot of these secondary banks/savings banks. Probably hardly anybody is familiar with all of them . However on this forum the following are mentioned quite often.
Aldermore; Paragon; Charters; Shawbrook; Ford Money ; Chase ( new to UK ) + others.