FSCS Protection - investment via savings marketplace

skray

In top fixed terms savings at MSE there is an option to invest with Aldermore for 6m via Savings Marketplace account Prosper.

"Prosper is a 'savings marketplace', which means that it does special deals with banks to offer savings accounts – often at higher rates than are available direct with that bank. The Aldermore 4.63% six-month fixed-rate account is only available via Prosper."

"If you open an account through Prosper, you first add your deposit to your 'Prosper wallet' – this is a holding account provided by Griffin Bank, which has FSCS protection up to £85,000. The deposit is then transferred to the savings account you picked (covered by the bank's FSCS protection)."

I understand both Griffin Bank and Aldermore Bank are protected by FSCS, but apparently Prosper is not - but the money will be in control of Prosper in some form at least for some time.
My question is probably academic - is my money really safe with FSCS protection?
Thanks

Eyeful

1. Prospers information below, suggest your money will be be in "Holding Account" and will be protected.
Suggest you read it carefully and decide.
https://www.prosper.co.uk/help/en/articles/10054210-are-my-savings-protected

2. I always think when reading about   "Savings Middle Men Market Places"
Is it really worth it for the small amount of extra interest that you will get?
If something does go wrong,
Will each of the institutions blame the other (I think they will)?
Expect getting your money back will take a lot longer.
You also hope they are telling you the truth about the protection you are getting. 

3. When its direct between you and the bank
You know what protection you are getting.
If something does go wrong, you should get your money back relatively quickly

masonic

Prosper Savings Limited has Client Money permission (to control client money), so this activity would be covered by FSCS.

https://register.fca.org.uk/s/firm?id=0014G000037rsn3QAA

It is not an e-money/Payment Services Provider, where cover would not apply.

Eyeful

skray
This may be of interest to you:
https://moneyfactscompare.co.uk/savings-accounts/

LHW99

2. I always think when reading about   "Savings Middle Men Market Places"

Is it really worth it for the small amount of extra interest that you will get?

If something does go wrong,

Will each of the institutions blame the other (I think they will)?

Expect getting your money back will take a lot longer.

You also hope they are telling you the truth about the protection you are getting.

I have tried the HL Active Savings version. My experience of that one was that:

• It was more of a faff getting it open than going directly to a provider.
• The interest rate I got was higher, but (as it was easy access) it changed, and I couldn't be bothered to keep chasing (not much different to going direct, but I would probably have been more proactive)
• Withdrawing was actually quicker than I expected (2 working days) so no different to some of the direct accounts I have used.

Would I use similar again? I don't know. Probably not for an easy access account. Maybe for a fixed one.

skray

Thanks everyone for your responses