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

WillPS

masonic said:

WillPS said:

masonic said:

WillPS said:

masonic said:

WillPS said:

I agree that it wouldn't make much sense for it to be above the base rate. That's still some way above the level they themselves offer to their customers tho, so the point remains.

Base rate is 4.5%. They offer 4.8 to their customers.

You seem to be arguing against the argument that they might not be making a loss, which isn't a claim I have ever made.

I'm arguing that 4.8 is a bigger number than 4.5. So 4.5 is not "still some way above the level they themselves offer to their customers". It is 0.3% below the rate they themselves offer to their customers.

Sorry, to clarify by 'they' I meant Barclays and Bank of Scotland.

Now I'm confused. You said it didn't make much sense for them to be paying Tembo more than base rate. So then, how could they be paying Tembo more than the 4.8% we know Tembo currently offer on their cash ISA?

I've never said they are. I'm saying that Barclays/Bank of Scotland don't pay their own [personal] customers anything even approaching the base rate (except the strings very much attached £5k limited Rainy Day Saver).

masonic

WillPS said:

masonic said:

WillPS said:

masonic said:

WillPS said:

masonic said:

WillPS said:

I agree that it wouldn't make much sense for it to be above the base rate. That's still some way above the level they themselves offer to their customers tho, so the point remains.

Base rate is 4.5%. They offer 4.8 to their customers.

You seem to be arguing against the argument that they might not be making a loss, which isn't a claim I have ever made.

I'm arguing that 4.8 is a bigger number than 4.5. So 4.5 is not "still some way above the level they themselves offer to their customers". It is 0.3% below the rate they themselves offer to their customers.

Sorry, to clarify by 'they' I meant Barclays and Bank of Scotland.

Now I'm confused. You said it didn't make much sense for them to be paying Tembo more than base rate. So then, how could they be paying Tembo more than the 4.8% we know Tembo currently offer on their cash ISA?

I've never said they are. I'm saying that Barclays/Bank of Scotland don't pay their own [personal] customers anything even approaching the base rate.

Ah ok, now I understand. Yes, it's derisory rates from Barclays/BoS direct to their customers. Presumably much better to Tembo. But still very likely below the rate Tembo is paying its customers.

jadex

masonic said:

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.

As someone who has had an inside view, I'd argue that I have pretty good idea how BS work.
Anyway, I am dropping my case now as I was clearly misunderstood and maybe I have not presented my point in the best way.
Moving on...