Aldermore bank to be sold

Albermarle

Aldermore are often mentioned on here as a savings provider ( and I have some money with them),but their owners are selling them due to problems in the motor finance area.

Any savings are covered by FSCS £120K, but I was wondering what the implications might be for the future. If they are lending/financing less activities, then they may have less need for an inflow of savings?

I suppose it will depend on who buys them?

FirstRand to sell off Aldermore Bank after UK car finance redress scheme criticism - FStech

x44

Sometimes it works the other way round, if you want to 'Big yourself up' to be sold you want as much money in as possible to get a higher price.

kassy64

I have a 2 year fixed rate ISA with with Aldermore. Even with the FSCS £120k compensation cover, should I be worried?

Ps- The balance is under the £120k limit.

wmb194

https://forums.moneysavingexpert.com/discussion/comment/81955817#Comment_81955817

No, don’t worry. Sometimes banks change hands.

Zaul22

Shawbrook might but them. They tried to buy Coop before Coventry did.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81955862#Comment_81955862

Yes no need to worry as such, but as a significant part of their business is/was motor finance and that caused the issues, then I wonder how easy it will be for them to find a new owner, when their business model is badly disrupted/shrunk.

Of course there are plenty of other savings providers, but Aldermore are one of the better ones IMHO.

Good very easy to use website. You can open multiple flexible ISAs in the same tax year. Interest rates usually reasonably competitive and no complicated rules about transfers, returning customers, bonus rates etc. and the FSCS applies directly to them and not indirectly to other banks, like with the newer fintech savings providers.

wmb194

https://forums.moneysavingexpert.com/discussion/comment/81955967#Comment_81955967

FirstRand is a reasonably profitable bank - c.£1.24bn net profit in 2024 - so worst case it could keep it or wind it down. I don't see any reason for panic.

https://en.wikipedia.org/wiki/FirstRand

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81956084#Comment_81956084

Always good to find someone with some FirstRand knowledge… 😉

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81956084#Comment_81956084

No panic here . Just interested in what might happen to one of my long standing savings account providers in the future. Of course there are plenty of others and they are not my only provider. I just find them easy to deal with/efficient , so would be a pity if they were wound down/swallowed up.

FirstRand is a reasonably profitable bank - c.£1.24bn net profit in 2024 

It will be a low lower in the next couple of years, as they are on the hook for £750M

mills112

https://forums.moneysavingexpert.com/discussion/comment/81956337#Comment_81956337

i had savings with sainsburys bank and tesco bank and they both were sold off to Natwest and Barclays. it obviously will affect their financial strageties, depending on who buys them. For me, as I had a fixed rate bond with Natwest, as they were merging, I would think that I am only covered by one FSCS amount.

LHW99

I have an easy access ISA with Aldermore and was looking to transfer to somewhere with a better rate. I shall probably do so sooner rather than later now. It can always be transferred again once the dust settles.