Banks we've never heard of

Eyeful

1. You could look up banks you have heard of on either of these two websites:
https://www.thisismoney.co.uk/money/article-1583859/Best-savings-rates-General-savings-Internet-branch.html
https://moneyfactscompare.co.uk/savings-accounts/

2. Where ever you decide to park your savings I suggest you always use the
(a) FCA register to get that companies reference number.(FRN)
https://register.fca.org.uk/s/
(b) FSCS savings checker to confirm your savings are protected up to £85K.
https://www.fscs.org.uk/check/check-your-money-is-protected/

3. You could try MSE savings checker, it is about half way down the page
https://www.moneysavingexpert.com/savings/safe-savings/

Albermarle

Sarahspangles said:

Nebbit said:

My  wife and I have an increasing amount in savings accounts (we are too risk averse for anything to do with stocks and shares) but whenever it comes to looking at new accounts, the accounts are all banks or building societies we have never heard of. Why should this be? Can anyone recommend a competitive account with a known company? We are looking to deposit, not save regularly. 

So we’re not alone in wondering where Chetwood is then?

We use one of the disruptor/app-only/non-standard banks but the majority of our accounts are with the ‘well-known names’ in the MSE lists. We’re getting competitive rates and by preference like to stick to mutuals.

If customer experience is a consideration, both my young adult children have gone back to using a building society for their main account because of technical/security issues with the newer banks that have left them without access to funds in an inconvenient way. It also concerns me that new banks don’t have solutions for many of the scenarios likely to affect elderly customers. In their later years both sets of our parents needed to visit a branch to resolve issues at some point.

I think you have to split these 'non high St' banks into at least two categories.

1) Those that offer current accounts ( and often savings accounts) with often millions of ( usually young) customers recruited in just a few years. For example Monzo, Starling etc. Sometimes just app based, and with lots of features. 

2) Smaller banks and building societies, who tend to stick to just offering savings products. For example, Aldermore, Paragon, Shawbrook and many more. Normally on line only ( but without an app) .

For the former I heard on R4's The Money Programme, that it is very common for people to only use these app/new banks as a secondary bank current account, for exactly the reasons your adult children state. One of my own adult children also does this, whilst continuing to use Nationwide as her main bank account.

For the latter, these are well used by the more savvy savers ( such as you see on here). The service from them is generally good, ( although occasionally a new entrant maybe a lacking) and the savings rates on offer normally better than better known savings providers. 

Nebbit

I am grateful to everyone who treated this naive question sensibly!  Thank you

penners324

If your long way down the lost of banks, perhaps put some into your pensions.

It's incredibly risky to not do so for you future financial health.

Do you have a Raisin or Flagstone account?

Baldytyke88

Do most banks operate in the same way?

I am not one that generally checks my finances, I just assume it will be correct. Do all banks use computers/AI to work out interest payments and taxes, so nothing to check?

eskbanker

Baldytyke88 said:

Do most banks operate in the same way?

I am not one that generally checks my finances, I just assume it will be correct. Do all banks use computers/AI to work out interest payments and taxes, so nothing to check?

Depends what you mean by 'operate in the same way'?  If you're asking whether they use technology to calculate interest then yes, I think it's safe to say that the days of quill pens and dusty ledgers are past us now....

thunderroad88

Main longstanding current account with Santander. Several hundred k in better rate offering (lesser known I guess) names like Hodge, Oxbury, Chip and Gatehouse. Never been any issues with any of them, not even Santander!

flaneurs_lobster

eskbanker said:

Baldytyke88 said:

Do most banks operate in the same way?

I am not one that generally checks my finances, I just assume it will be correct. Do all banks use computers/AI to work out interest payments and taxes, so nothing to check?

Depends what you mean by 'operate in the same way'?  If you're asking whether they use technology to calculate interest then yes, I think it's safe to say that the days of quill pens and dusty ledgers are past us now....

Should be said that banks (and other savings providers) don't calculate tax, interest is paid tax-free and should be accounted for like any other non-PAYE income.

EthicsGradient

Sarahspangles said:

Nebbit said:

My  wife and I have an increasing amount in savings accounts (we are too risk averse for anything to do with stocks and shares) but whenever it comes to looking at new accounts, the accounts are all banks or building societies we have never heard of. Why should this be? Can anyone recommend a competitive account with a known company? We are looking to deposit, not save regularly. 

So we’re not alone in wondering where Chetwood is then?

We use one of the disruptor/app-only/non-standard banks but the majority of our accounts are with the ‘well-known names’ in the MSE lists. We’re getting competitive rates and by preference like to stick to mutuals.

If customer experience is a consideration, both my young adult children have gone back to using a building society for their main account because of technical/security issues with the newer banks that have left them without access to funds in an inconvenient way. It also concerns me that new banks don’t have solutions for many of the scenarios likely to affect elderly customers. In their later years both sets of our parents needed to visit a branch to resolve issues at some point.

Chetwood is to the north and east of Bree - you'll pass it on the way from the Shire to Rivendell.