Nude LISA FSCS protection

Mosler

I've read the information on this site about the Nude LISA placing the money with Barclays and/or Virgin Money, therefore being covered by their FSCS protection. However, when the bank is looked up on the FSCS site it's says there is no protection for the savings, it's a bit of a worry. Has anyone got a Nude LISA?

dunstonh

Typing Nude LISA into the search engine gave some interesting results.

A quick and dirty check (not as dirty as some of the sites) indicates that Nude (913654) comes under Payment Service Directories and they don't get FSCS protection.  The FCA website confirms it holds no deposit permissions.  

Nude also have FCA number 928010 but the FSCS isn't recognising that FRN.  There are no deposit permissions with that one though. Just investment permissions.  Firms with just investment permissions don't usually appear on the FSCS website

masonic

https://www.getnude.com/ points to the following entry on FCA register: https://register.fca.org.uk/s/firm?id=0014G00002WKfXnQAL

The firm has the 'client money' permission, so any uninvested cash held in their client money account or saved with an FCA authorised bank they have partnered with would have FSCS protection. It is a similar arrangement to HL Active Savings and Raisin.

Here is the more concerning part - high charges:

In the first year, if you deposit the full £4k and receive £1k top-up, you'll be paying almost 0.5% for a cash LISA or a total of 1% for a S&S LISA. If you were to save/invest less than this then the costs would be even higher.

Mosler

masonic said:

https://www.getnude.com/ points to the following entry on FCA register: https://register.fca.org.uk/s/firm?id=0014G00002WKfXnQAL

The firm has the 'client money' permission, so any uninvested cash held in their client money account or saved with an FCA authorised bank they have partnered with would have FSCS protection. It is a similar arrangement to HL Active Savings and Raisin.

Here is the more concerning part - high charges:

In the first year, if you deposit the full £4k and receive £1k top-up, you'll be paying almost 0.5% for a cash LISA or a total of 1% for a S&S LISA. If you were to save/invest less than this then the costs would be even higher.

However, if you have 2 or more years of the maximum £4k and the bonus £1k in a cash LISA , the additional interest (Nude cash LISA is 1.25%) compared to the next highest interest rate with Skipton BS at 0.85%, is greater than the the membership fee.

masonic

Mosler said:

masonic said:

https://www.getnude.com/ points to the following entry on FCA register: https://register.fca.org.uk/s/firm?id=0014G00002WKfXnQAL

The firm has the 'client money' permission, so any uninvested cash held in their client money account or saved with an FCA authorised bank they have partnered with would have FSCS protection. It is a similar arrangement to HL Active Savings and Raisin.

Here is the more concerning part - high charges:

In the first year, if you deposit the full £4k and receive £1k top-up, you'll be paying almost 0.5% for a cash LISA or a total of 1% for a S&S LISA. If you were to save/invest less than this then the costs would be even higher.

However, if you have 2 or more years of the maximum £4k and the bonus £1k in a cash LISA , the additional interest (Nude cash LISA is 1.25%) compared to the next highest interest rate with Skipton BS at 0.85%, is greater than the the membership fee.

If they permit transfers in and the rate is 1.25% (neither of these pieces of information are on their website), then yes, the cash LISA might work out better if the gap between Nude and the next highest rate is maintained. For the S&S LISA, it is unlikely to be the best option regardless of balance.

Mosler

masonic said:

Mosler said:

masonic said:

https://www.getnude.com/ points to the following entry on FCA register: https://register.fca.org.uk/s/firm?id=0014G00002WKfXnQAL

The firm has the 'client money' permission, so any uninvested cash held in their client money account or saved with an FCA authorised bank they have partnered with would have FSCS protection. It is a similar arrangement to HL Active Savings and Raisin.

Here is the more concerning part - high charges:

In the first year, if you deposit the full £4k and receive £1k top-up, you'll be paying almost 0.5% for a cash LISA or a total of 1% for a S&S LISA. If you were to save/invest less than this then the costs would be even higher.

However, if you have 2 or more years of the maximum £4k and the bonus £1k in a cash LISA , the additional interest (Nude cash LISA is 1.25%) compared to the next highest interest rate with Skipton BS at 0.85%, is greater than the the membership fee.

If they permit transfers in and the rate is 1.25% (neither of these pieces of information are on their website), then yes, the cash LISA might work out better if the gap between Nude and the next highest rate is maintained. For the S&S LISA, it is unlikely to be the best option regardless of balance.

It does state here the cash LISA rate and that you can transfer into the account: https://www.getnude.com/lisa

"Earn 1.25% interest AER (annual equivalent rate — aka: per year) variable on the balance of your account, including the 25% government bonus."

Under "Need to knows":
"Can I open a Nude Lifetime ISA if I already have a Lifetime ISA?
You can only pay into one cash lifetime ISA or one stocks and shares lifetime ISA every tax year (April 6th to April 5th).If you have paid into your current lifetime ISA this tax year, but want to open and pay into another one with Nude, you can either transfer these to Nude or wait until the new tax year begins on April 6th.If you want to close your current lifetime ISA and move everything over to Nude, we can help you make the full transfer from the Nude app and you can continue saving or investing for your first home straight away."

masonic

Mosler said:

masonic said:

Mosler said:

masonic said:

https://www.getnude.com/ points to the following entry on FCA register: https://register.fca.org.uk/s/firm?id=0014G00002WKfXnQAL

The firm has the 'client money' permission, so any uninvested cash held in their client money account or saved with an FCA authorised bank they have partnered with would have FSCS protection. It is a similar arrangement to HL Active Savings and Raisin.

Here is the more concerning part - high charges:

In the first year, if you deposit the full £4k and receive £1k top-up, you'll be paying almost 0.5% for a cash LISA or a total of 1% for a S&S LISA. If you were to save/invest less than this then the costs would be even higher.

However, if you have 2 or more years of the maximum £4k and the bonus £1k in a cash LISA , the additional interest (Nude cash LISA is 1.25%) compared to the next highest interest rate with Skipton BS at 0.85%, is greater than the the membership fee.

If they permit transfers in and the rate is 1.25% (neither of these pieces of information are on their website), then yes, the cash LISA might work out better if the gap between Nude and the next highest rate is maintained. For the S&S LISA, it is unlikely to be the best option regardless of balance.

It does state here the cash LISA rate and that you can transfer into the account: https://www.getnude.com/lisa

"Earn 1.25% interest AER (annual equivalent rate — aka: per year) variable on the balance of your account, including the 25% government bonus."

Under "Need to knows":
"Can I open a Nude Lifetime ISA if I already have a Lifetime ISA?
You can only pay into one cash lifetime ISA or one stocks and shares lifetime ISA every tax year (April 6th to April 5th).If you have paid into your current lifetime ISA this tax year, but want to open and pay into another one with Nude, you can either transfer these to Nude or wait until the new tax year begins on April 6th.If you want to close your current lifetime ISA and move everything over to Nude, we can help you make the full transfer from the Nude app and you can continue saving or investing for your first home straight away."

Then the only risk is that the rate doesn't beat the competition by as much in a few months time, which would be the case with any provider.

intalex

I guess Nude is merely an intermediary like MoneyBox and as long as (i) the interest upside (vs next best option) exceeds the £2 fee, and (ii) balance doesn't "conflict" with existing balances with Barclays or Virgin Money, then no other catches to worry about?

masonic

intalex said:

I guess Nude is merely an intermediary like MoneyBox and as long as (i) the interest upside (vs next best option) exceeds the £2 fee, and (ii) balance doesn't "conflict" with existing balances with Barclays or Virgin Money, then no other catches to worry about?

Just the potential complexities of having an intermediary in the mix should things go wrong.

intalex

It doesn't even feature on MoneyFacts tables, I'm not sure why?

masonic

intalex said:

It doesn't even feature on MoneyFacts tables, I'm not sure why?

How could they list it on MoneyFacts? The rate you achieve is highly dependent on your balance because of the £2 per month fee. I don't think they ever include products with a fee.

They don't list MyCommunityBank either, even though it is the second best 1 year fix and doesn't have the rate complexity of Nude. It is another opaque product where MyCommunityBank acts as an intermediary for a couple of credit unions.