MoneyFarm cash ISA

cheesedoffcrissie

This provider was on MSE best rate variable rate ISA last week but hasn’t appeared this week I was wondering if anyone has had any dealings with this investment company[ I am calling it this as from all I have read it is not a bank ] It is covered by the FSCS and has a good rate of 4.42%’

El_Torro

The important thing is that it is covered by the FSCS. Worth checking this is true rather than just believing their claim, though if MSE have recommended it I imagine that the due diligence has been done. 

Some people have a preference for big high street names rather than just an institution covered by the FSCS. You're protected either way though.

Make sure you are happy with the limitations of this account. A quick look at the website shows that if you withdraw more than 3 times a year this will affect the interest rate you get.

Eyeful

1. MoneyFarm is an Investment Advisor and Investment Management Company not a 
Bank, Building Society or Credit Union.

2. Only Banks, Building Societies & Credit Unions on the FSCS list are covered by the FSCS Savings Protection up to $85K.. MoneyFarm is not on that list. You can check for yourself below
https://www.fscs.org.uk/check/check-your-money-is-protected/

eskbanker

Eyeful said:

1. MoneyFarm is an Investment Advisor and Investment Management Company not a 
Bank, Building Society or Credit Union.

2. Only Banks, Building Societies & Credit Unions on the FSCS list are covered by the FSCS Savings Protection up to $85K.. MoneyFarm is not on that list. You can check for yourself below
https://www.fscs.org.uk/check/check-your-money-is-protected/

Moneyfarm is just a brand name and it isn't the FSCS deposit protection that they rely on:

Moneyfarm is a trading name of MFM Investment Ltd, which is authorised and regulated by the Financial Conduct Authority (FCA Firm Reference Number: 629539)

How is my money protected under the FSCS?
Your Cash ISA is invested in qualifying money market funds and is protected under the Financial Services Compensation Scheme (FSCS) investment protection, not the deposit protection scheme. This means you may be entitled to compensation of up to £85,000 if MFM Investment Ltd were to fail and you suffer a financial loss as a result. FSCS protection does not cover losses from market performance.

https://www.moneyfarm.com/uk/cash-isa/

Eyeful

As the OP is a first time poster, they may not understand that Money Market Funds are investments & not savings.
So I thought it important that they should understand that as MoneyFarm is not a Bank or Building Society it will not be covered by the FSCS Savings Protection Scheme, which is what many think of when they here FSCS.

masonic

I think it is fairly likely the OP was unaware they have less protection against financial loss in this product than they would in a traditional cash ISA.

eskbanker

Eyeful said:

As the OP is a first time poster, they may not understand that Money Market Funds are investments & not savings.
So I thought it important that they should understand that as MoneyFarm is not a Bank or Building Society it will not be covered by the FSCS Savings Protection Scheme, which is what many think of when they here FSCS.

Yes, I was expanding on what you'd posted rather than contradicting it.

cheesedoffcrissie

It does say on the website for Money Farm that the ISA they are offering is covered by the FSCS but it doesn’t actually state that your money is safe if they should go bust only that you are covered if they should mishandle your money. I think I will follow my original gut feeling and give this one a miss and accept a lower rate that I feel confident with. Thank you all for your input it was most helpful.