GB Bank

mills112

They are top of the leader board for one year fixed rate savings.

Anyone got experience of this bank and can comment? Thanks

EthicsGradient

I've used them for both an easy access account with them directly (not for long, I just left because better interest rates became available elsewhere), and am still in a 2 year fixed account with them via Raisin. No problems with them.

masonic

In the 7th edition of this series of threads asking this question of a different provider, we learn this one is ok too 😉

Looking forward to the next bank reaching the top of the leaderboard. I suppose it gets each one a little bit of free publicity on the forum at least.

allegro120

I have Easy Access account with GB. I used it about a year ago for a month or two when their rate was good, didn't have any problems with this bank.

subjecttocontract

We have both had accounts with GB Bank through the Raisin platform. Never had any problems.

mills112

https://forums.moneysavingexpert.com/discussion/comment/81992442#Comment_81992442

i am astonished there are so many banks that are not well known. how do they ever get anyone to invest with them when no one knows who they are?!

i only ever hear about them on the MSE board, so in a way the MSE board is giving them the advertisement!

masonic

https://forums.moneysavingexpert.com/discussion/comment/81992788#Comment_81992788

They get a banking licence, authorisation by the FCA, and join the FOS and FSCS. Then they offer a good interest rate (which they have to do to attract money).

Savers who are focused on rate then dive in, because they have strong consumer protection and their money is 100% safe subject to FSCS limits.

Providers know that if they fail to meet basic standards it will cost them big time, so they will obviously not put their business at risk by having to pay out lots of compensation, FOS case fees, and potentially even a fine or new customer ban from the FCA.

So the end result is that many take the view that as long as the above protections apply, they can focus on the best rate, which works the vast majority of the time.

As far as fixed rate savings accounts are concerned, it is a very simple contract, with little need for ongoing customer service - just a good application process, a way for customers to get their money into the account with the minimum fuss, and efficient return of the money plus interest at the end of the term.

It's worth noting though that some of these unfamiliar providers are just trading names of other better known providers, and some are better known by a former name.

All in all, I'd say this is a success story for consumers and competition in the market, and we are fortunate in the UK to have a system with this level of confidence and choice.

subjecttocontract

They have a UK banking licence, your money is protected by the FSCS, they have been around for a while now and it's easy to find out online lots more detail about them. If they offer an account that meets your needs go for it.

allegro120

https://forums.moneysavingexpert.com/discussion/comment/81992788#Comment_81992788

There are probably more small banks than you think😀 Their products are advertised on comparison websites like https://www.moneysupermarket.com/ and https://moneyfactscompare.co.uk/ .

TheWoodler

It is a fair question to ask - the neobanks don’t have a massive publicity footprint so it makes sense to ask if anyone has had experience with them.

FWIW I’ve had a competitive rate on a fixed-term bond with GB Bank in the past through Hargreaves Lansdown, but not directly. So my experience mirrors PP who have had products with them through intermediaries.

I think - particularly if you are new to the wider savings market outside the big institutions - it’s important to ask yourself about your personal needs as well as asking for experiences.

For me GB Bank wouldn’t meet my needs directly, as they don’t have an accessibility policy and they’re unlikely to meet my communications needs as a deaf customer, which is important to me in case of query or problem. That’s no reflection on their operations as a financial institution, but it does reflect on the customer journey, which is part of the bigger ‘experience’ picture.

HL does meet my needs and I was pleased with the very competitive rate offered by GB Bank through them at that time. ie the product offered through the intermediary met my financial needs, but I continue to have reservations about the accessibility aspect as part of their customer service. HL allowed me to test the water with GB Bank, and if they improved their accessibility, then I’d be happy to become a direct customer.

This may not be relevant to your circumstances of course, but I do feel that accessibility, site design, ease of application, communication and ethics are important parts of the customer relationship and worth thinking about in choosing a product, as well as more general service, rates, product type and features and regulatory compliance questions.

friolento

These banks exist in the main to provide loans to consumers and/or small businesses as that is how they make their main income.