Accounts using partner banks

1spiral

I find these accounts quite difficult to get to the bottom of. I'm talking of the "everyone treated the same" accounts as opposed to the self select like Raisin.

I'm aware of 4, the simplest is Chip because they only partner with Clearbank.

The next I'm aware of is Moneybox. I enquired with them a month or so ago about visibility of fund distribution and was advised it was not visible within the app but you could request the information which they update weekly. They never exceed 50% with any institution so theoretically you could hold 170K with them and be protected.

The other 2 I'm aware of are Tembo and Trading 212 but have no further info on either of them.

What others are there and how do they present their distribution of funds.

grumpy_codger

1spiral said:

The other 2 I'm aware of are Tembo and Trading 212 but have no further info on either of them.

Trading 212 :

I think it varies from customer to customer and, possibly, with time.

Eyeful

Cannot understand what your first sentence means. Please explain more clearly.

wiseonesomeofthetime

Of note, Trading212 appear to rebalance/change the proportion held with each bank too.

Mine used to be (roughly)
JP Morgan 20%
Barclays 40%
NatWest 40%

This morning, the allocation is heavily weighted towards NatWest!!

JP Morgan 8.51%
Barclays 32.43%
NatWest 59.06%

1spiral

Eyeful said:

Cannot understand what your first sentence means. Please explain more clearly.

Understanding how they deposit the funds.

masonic

Do you mean financial services companies that don't have a banking licence, but allow you to deposit money into accounts provided by third party banks?

Pretty much every investment platform will fall into this category for uninvested cash. They will usually tell you which bank or banks they use.

There are also smaller savings banks and building societies whose accounts piggy-back on larger banks. Here you would generally have direct FSCS protection if that is the source of your concern. But it may be worth bearing in mind if say Barclays went down permanently, a lot of other smaller players would probably be taken down too.

eskbanker

1spiral said:

I find these accounts quite difficult to get to the bottom of. I'm talking of the "everyone treated the same" accounts as opposed to the self select like Raisin.

I'm aware of 4, the simplest is Chip because they only partner with Clearbank.

The next I'm aware of is Moneybox. I enquired with them a month or so ago about visibility of fund distribution and was advised it was not visible within the app but you could request the information which they update weekly. They never exceed 50% with any institution so theoretically you could hold 170K with them and be protected.

The other 2 I'm aware of are Tembo and Trading 212 but have no further info on either of them.

What others are there and how do they present their distribution of funds.

Perhaps it would help if you clarify what you're actually trying to achieve - are you simply conducting some abstract research or are you looking for somewhere to save your money?

1spiral

eskbanker said:

1spiral said:

I find these accounts quite difficult to get to the bottom of. I'm talking of the "everyone treated the same" accounts as opposed to the self select like Raisin.

I'm aware of 4, the simplest is Chip because they only partner with Clearbank.

The next I'm aware of is Moneybox. I enquired with them a month or so ago about visibility of fund distribution and was advised it was not visible within the app but you could request the information which they update weekly. They never exceed 50% with any institution so theoretically you could hold 170K with them and be protected.

The other 2 I'm aware of are Tembo and Trading 212 but have no further info on either of them.

What others are there and how do they present their distribution of funds.

Perhaps it would help if you clarify what you're actually trying to achieve - are you simply conducting some abstract research or are you looking for somewhere to save your money?

Yes I'm looking for them as savings accounts. As I said originally, I contacted Moneybox to find out their breakdown and visibility of this and they told me that it is only published weekly and you have to request that from them directly. This put me off of these types of accounts so I didn't bother looking into them any further but of late, they are swamping the best buy tables so wanted to understand how visible the data is from other institutions. It appears from the replies above that Trading 212 make the detail (presumably live) available in the app.

My concern is that if these companies have cross over between the institutions, how do you keep on top of FSCS protection, especially if like Moneybox, you don't provide access to realtime data.

I am also interested to know if there are other top payers in addition to the 4 I have listed above that operate in this manner as it isn't usually obvious at first glance.

masonic

1spiral said:

My concern is that if these companies have cross over between the institutions, how do you keep on top of FSCS protection, especially if like Moneybox, you don't provide access to realtime data.

One strategy is not to hold more than £85k in total cash on deposit. That's how most people will be (unwittingly) managing this risk.

If you do have more than £85k in cash, then every provider is required to supply a FSCS information sheet when you open a deposit account and annually thereafter. You could note this in a spreadsheet. Then you just need to chase up the indirect accounts you hold.

For those using multiple underlying client accounts, you will probably need to check as regularly as your balance and risk tolerance dictates.

PRAISETHESUN

masonic said:

1spiral said:

My concern is that if these companies have cross over between the institutions, how do you keep on top of FSCS protection, especially if like Moneybox, you don't provide access to realtime data.

One strategy is not to hold more than £85k in total cash on deposit. That's how most people will be (unwittingly) managing this risk.

If you do have more than £85k in cash, then every provider is required to supply a FSCS information sheet when you open a deposit account and annually thereafter. You could note this in a spreadsheet. Then you just need to chase up the indirect accounts you hold.

For those using multiple underlying client accounts, you will probably need to check as regularly as your balance and risk tolerance dictates.

There's also the consideration that FSCS protection applies to the combined deposits with a given bank. If you have multiple e-money accounts, which individually you hold less than the FSCS limit with, but they all keep their client money with the same FSCS bank you could potentially be at risk - for example a hypothetical scenario where you hold £50k each with both T212 and Moneybox, but they both keep your money with Barclays (£100k total)

1spiral

masonic said:

1spiral said:

My concern is that if these companies have cross over between the institutions, how do you keep on top of FSCS protection, especially if like Moneybox, you don't provide access to realtime data.

One strategy is not to hold more than £85k in total cash on deposit. That's how most people will be (unwittingly) managing this risk.

The problem with this is that has to be the total across all of these platforms (as @PRAISETHESUN has said) unless you know for definite that they don't use the same institutions. That's why I'm trying to understand how these companies provide this info. The only conclusive response on this matter so far is for Trading 212. Do I take it that Tembo don't provide any realtime data on detailing the distribution?