Unknown banks..are they safe?

E853

Thus might seem a daft question but I'm a very conservative saver/banker and have always used known high street financial companies...but I notice on this website the highest ISA rates are with non-high street banks....I.e. Habib etc.  

I'm wary of Internet banking so how can I check these banks are ok to use?  I imagine they have to be FS regulated? 

Thanks for any advice.  

DullGreyGuy

If they are an actual bank they have to be authorised by the PRA and regulated by the PRA and FCA. These will have direct FSCS protection for failure up to £85k assuming it's a cash ISA. 

If they're a digital wallet or some other form of non-bank then its likely they will just be authorised and regulated by the FCA.

If you look at Moneybox, an example of a non-bank, they list the banks they deposit the money with and so state you are protected under FSCS if one of them fails which is fine. What they dont advise on on their website is what if Moneybox themselves fail? Sure they dont hold your money so in principle its safe but how do you go about identifying which banks hold what if Moneybox are no longer about? Do the underlying banks have a record of what's invested for whom? 

Albermarle

Most savers on this forum will be with smaller banks/savings providers as they have the best rates. So they are not unknown, just unfamiliar to the general public.
If they are mentioned in these comparison charts, they are legit and covered by the FSCS compensation scheme.
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Best ISA Rates UK | Dec 2024 | Compare All ISA Types

Having said that, even amongst this sector, some players are more established than others and have better websites, customer service, longer track record in UK etc .

Eyeful

E853 take the following steps to check the banks:

To avoid company clones & scams.

1. To find ALL CORRECT contact details for the company of interest.

Type the company name into the FCA register below:
https://register.fca.org.uk/s/

Example:     Monument Bank Limited

Firm Reference Number (FRN): 849724

Website: https://www.monument.co/

Make sure you down load their app via this correct registered website, to avoid any company clones.

2. To check your money is covered by the FSCS Savings Protection. 

Type in the FRN into the FSCS checker below:

https://www.fscs.org.uk/check/check-your-money-is-protected/

Example: Monument Bank Limited

Is protected up to £85000

3. Suggest you book mark both above registers for future use.