Best Cash ISAs by MoneySavingExpert - unknown brands not protected by FSCS??

gardigest

Could somebody help me reconcile two apparently contradictory facts? On the Money Saving Expert page about Best Cash ISAs, we are assured that all the featured ISAs "have the full £85,000 savings protection". Yet, when I go to the FSCS site to check on one such ISA - provided by Tembo - I discover that Tembo (FRN:913654) is "NOT PROTECTED" and the site affirms that all money held by Tembo is deemed to be "Money at risk". That made me feel rather wary. And Tembo is not the only one from MSE's suggestions to be categorised by the FSCS as Not Protected and putting "money at risk". It would appear, however, that Tembo is registered with the FCA, but this is not the entity which offers the £85,000 protection.

Difficult to imagine that MSE got it wrong, so I'll hasard a guess : seeing as Tembo is not a bank per se, and it ring-fences customer funds, the important question is whether the bank(s) partnering Tembo - and holding those customer funds - are protected by the FSCS (Barclays and Bank of Scotland).

Thanks in advance for any helpful feedback.

Ayr_Rage

Looks like you missed this on the Tembo website!

Sarahspangles

This is their claim, it’s a different FRN number for the savings element.

https://help.tembomoney.com/en/articles/10455373-does-tembo-have-an-frn

gardigest

Thanks, I did see that, but I'm aware of scams too (especially with non-household names) and, being fairly new to placement of savings, I'm cautious. You have to admit that going to the FSCS website only to be told NOT PROTECTED, might set off some alarm bells.

Ayr_Rage

Haven't seen ANY scams that have been accidentally listed by MSE or Moneyfacts.

Don't let paranoia get to you.

gardigest

Sarahspangles said:

This is their claim, it’s a different FRN number for the savings element.

Thanks, Sarah. I guess I'm going through a process of clarification in my head, seeing as I'm new to this and naturally a cautious person. Getting feedback from others helps. The FRN number guarantees that Tembo is registered with the FCA - basically allowing it to legally operate financial services. But its FSCS situation of "non-protection" is not of concern because it's the partner banks (Barclays and Bank of Scotland) who need to have that FSCS protection working properly. That's what i'm gleaning in any case.

gardigest

Ayr_Rage said:

Haven't seen ANY scams that have been accidentally listed by MSE or Moneyfacts.

Don't let paranoia get to you.

Thanks for the reassurance and you're right about paranoia lol. I'm only just starting to look beyond the high street names. I guess I'll feel more comfortable after some positive experiences. Although, take a look at the thread "Tembo - are they any good" which contains a worrying account from a forum-user who found her Tembo account depleted of funds (and not from his/her own doing). Still waiting for an outcome...

masonic

gardigest said:

Thanks, I did see that, but I'm aware of scams too (especially with non-household names) and, being fairly new to placement of savings, I'm cautious. You have to admit that going to the FSCS website only to be told NOT PROTECTED, might set off some alarm bells.

The FSCS website is not very reliable. You can use the FCA register https://register.fca.org.uk/s/ to confirm that the firm has the necessary regulatory permissions. FSCS protection comes from being an authorised firm offering relevant regulated services. Tembo Savings' entry: https://register.fca.org.uk/s/firm?id=0014G00002WKfXnQAL

You can use the firm details to verify you are dealing with the genuine firm.

Old, but still relevant: https://forums.moneysavingexpert.com/discussion/5892874/when-fscs-protection-does-not-apply

dunstonh

 The FRN number guarantees that Tembo is registered with the FCA - basically allowing it to legally operate financial services.

Being authorised by the FCA doesnt mean everything that the firm does is regulated by the FCA or have FSCS protection.   Only regulated services get FSCS protection.

Sarahspangles

gardigest said:

Sarahspangles said:

This is their claim, it’s a different FRN number for the savings element.

Thanks, Sarah. I guess I'm going through a process of clarification in my head, seeing as I'm new to this and naturally a cautious person. Getting feedback from others helps. The FRN number guarantees that Tembo is registered with the FCA - basically allowing it to legally operate financial services. But its FSCS situation of "non-protection" is not of concern because it's the partner banks (Barclays and Bank of Scotland) who need to have that FSCS protection working properly. That's what i'm gleaning in any case.

I generally choose not to transact with any ‘new kids on the block’ whether financial services or utility providers. Not so much because I think my money is at risk but because a couple of my nearest and dearest have had frustrating issues with apps and processes operated by new setups. Let other customers knock the edges off the issues first, I’m not desperate for the small financial advantage they present.

Albermarle

Sarahspangles said:

gardigest said:

Sarahspangles said:

This is their claim, it’s a different FRN number for the savings element.

Thanks, Sarah. I guess I'm going through a process of clarification in my head, seeing as I'm new to this and naturally a cautious person. Getting feedback from others helps. The FRN number guarantees that Tembo is registered with the FCA - basically allowing it to legally operate financial services. But its FSCS situation of "non-protection" is not of concern because it's the partner banks (Barclays and Bank of Scotland) who need to have that FSCS protection working properly. That's what i'm gleaning in any case.

I generally choose not to transact with any ‘new kids on the block’ whether financial services or utility providers. Not so much because I think my money is at risk but because a couple of my nearest and dearest have had frustrating issues with apps and processes operated by new setups. Let other customers knock the edges off the issues first, I’m not desperate for the small financial advantage they present.

Also as I understand it these cash ISA's with Tembo and T212, just put your money in a bank account, and are effectively just passing on the interest and making zero ( possibly minus) profit, as some kind of loss leader.
If I have understood it properly ( and I have not studied it that closely) it is a bit of an odd business model, so for that reason I have not been rushing in either. Although a family member does have a T212 cash ISA with no issues.