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

apt

Ayr_Rage said:

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

Don't let paranoia get to you.

I guess you are too young to remember the Icelandic banks and Crown Currency?

Speculator

gardigest said:

fuzzzzy said:

gardigest said:

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.

A "loss leader"? Meaning they intentionally want to go bust? Or they are trying to incite customers to get on board with them and invest in other more profitable (for Tembo) products ?

A bit like when all the supermarkets advertise super cheap veg at xmas, hoping that once you are in there you'll spend lots of money on other stuff too.

Personally, I go for the yellow sticker stuff, that's almost out of date. Works out even cheaper than their promotional reductions. And it's rare that I get enticed into buying more expensive stuff lol. But I get your point.

Not always. For example, Tesco had some tomatoes normal price of £1 but clubcard price of 69p. They also had some in the reduced section at 1pm, reduced to 80p. Tesco for some reason use the normal price to calculate the reductions, not the clubcard price.

jadex

Albermarle said:

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.

Do you also avoid Building Societies?
Because that is exactly how they operate in principle - for instance, when you deposit your money into Skipton BS they deposit it into their Barclays bank account. Others use HSBC, Lloyd's. etc.
So, it is not a very odd business model...

friolento

jadex said:

Albermarle said:

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.

Do you also avoid Building Societies?
Because that is exactly how they operate in principle - for instance, when you deposit your money into Skipton BS they deposit it into their Barclays bank account. Others use HSBC, Lloyd's. etc.
So, it is not a very odd business model...

The Building Societies usually have their own FSCS protection. Very few of them share it with another company.

Many if not most of the Fintechs have a very different approach. Your money deposited with them will have the FSCS protection of the bank they move your money to. If you have less than £85k (incl interest) in total cash savings, you have no need to worry about anything. But if  you have more than £85k, spread over more than one Fintech, you need to make sure yourself that you don’t end up with more than £85k in the same bank.

GeoffTF

friolento said:

Many if not most of the Fintechs have a very different approach. Your money deposited with them will have the FSCS protection of the bank they move your money to. If you have less than £85k (incl interest) in total cash savings, you have no need to worry about anything.

I would not be so sure about that. If a Fintech does not have it own FSCS protection, and goes bust before it deposits your money with a bank, you could have a problem if it has not been properly ring fenced. The risk may be very small, but I would rather avoid it.

masonic

Which is why it's important to verify that the firm you are initially sending the money to has the Client Money permission and is not an e-money institution or unregulated firm. FSCS protection would not apply to the latter two scenarios.

Albermarle

jadex said:

Albermarle said:

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.

Do you also avoid Building Societies?
Because that is exactly how they operate in principle - for instance, when you deposit your money into Skipton BS they deposit it into their Barclays bank account. Others use HSBC, Lloyd's. etc.
So, it is not a very odd business model...

The building societies take your money and relend it to make a profit, and have their own FSCS cover.
The fact that most of them have their current/business account with a big clearing bank is not relevant.

jadex

Albermarle said:

jadex said:

Albermarle said:

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.

Do you also avoid Building Societies?
Because that is exactly how they operate in principle - for instance, when you deposit your money into Skipton BS they deposit it into their Barclays bank account. Others use HSBC, Lloyd's. etc.
So, it is not a very odd business model...

The building societies take your money and relend it to make a profit, and have their own FSCS cover.
The fact that most of them have their current/business account with a big clearing bank is not relevant.

it wasn't the point though, was it?
it was the point about "very odd" business model when, in fact, it's not very odd

masonic

jadex said:

Albermarle said:

jadex said:

Albermarle said:

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.

Do you also avoid Building Societies?
Because that is exactly how they operate in principle - for instance, when you deposit your money into Skipton BS they deposit it into their Barclays bank account. Others use HSBC, Lloyd's. etc.
So, it is not a very odd business model...

The building societies take your money and relend it to make a profit, and have their own FSCS cover.
The fact that most of them have their current/business account with a big clearing bank is not relevant.

it wasn't the point though, was it?
it was the point about "very odd" business model when, in fact, it's not very odd

I think you've misunderstood the business model of building societies. They do not just deposit money they receive from savers into bank accounts, they lend it to other members in mortgages and loans at higher interest rates than they pay the saver, resulting in an income for the saver and a profit for themselves. Aggregators cannot do that because they don't have the required authorisation, and in several cases they pay consumers interest for the privilege of keeping their money in institutional bank accounts, apparently at a loss to themselves. That is an odd business model.

Ocelot

apt said:

Ayr_Rage said:

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

Don't let paranoia get to you.

I guess you are too young to remember the Icelandic banks and Crown Currency?

I'm old enough to remember BCCI.