Using Lemfi for savings. Any feedback please

estebandos

I'm curious as to why Lemfi does not appear among the MSE saving best buys when it seems to qualify. Despite that I decided to open a savings account, plus the obligatory GBP account, which I don't use.

My experience is that if you make direct bank transfers to the savings account - not the GBP account - there is a (Clearbank) sort code and account number shown and the GBP account deposit and withdrawal limits do not apply. I have made several deposits up to my everyday bank's daily transfer limit without problems.

cloud_dog

I think they have only very recently made a change that allows you to directly withdraw from the savings account to the linked account.

Noah159

i have had a Lemfi instant access savings account. I had an (unrelated!) hacking concern and so i made Lemfi aware and asked them to lock my account. They actioned this without concern.

When i came to unlock my account, it was a difficult process. you get through to a foreign call centre, there are no opportunities for escalation and they only tell you they'll log a case via email. This went on for a while and when you start to read some of the threads online, coupled with not being able to access your account and dealing with the occasional unprofessional (certainly unsympathetic) rep on the end of a call centre its easy to start to panic…which is exactly what i did!

i made a nuisance of myself and kept contacting them until it was eventually unlocked. I transferred money out of the account up to the daily 10k daily limit and then they completed (what they call) a 'refund to the source account' for the remaining balance. Whilst it was a nervous few hours, they did return my money in a matter of a number of business hours, so in summary all is well that ends well.

i'm leaving this comment as i'd have appreciated it when i was deep in worry about it being a scam. My summary would be that for savers, this appears to be a customer service issue rather than a scam issue. But given how precious our money is, i'll be remembering the panic as a lesson learned and looking for a slightly more reputable bank in future.

the only other concern i had, especially when i was worried, was that Lemfi states its FSCS regulated, yet when checking online (With FSCS directly) it appears to not be protected, which seems strange.

Anyway, i hope this helps!

eskbanker

the only other concern i had, especially when i was worried, was that Lemfi states its FSCS regulated, yet when checking online (With FSCS directly) it appears to not be protected, which seems strange

As explained on their site, they're one of the many providers who use other (FSCS-protected) banks for their deposits:

Eligible deposits held in the LemFi Instant Access Account (powered by ClearBank) are covered by the Financial Services Compensation Scheme (FSCS) subject to eligibility. All eligible deposits at the same bank are aggregated to determine the coverage level for each depositor up to £120,000, therefore if you have any other products/services with ClearBank or one of their eligible intermediaries, these will be aggregated. To find out more and to check your eligibility please visit fscs.org.uk/about-us/

cannonballdaze

A lot of organisations do this. It would be wise to check one doesn't have other accounts with Clearbank as the FSCS guarantor.

Persephone_

https://forums.moneysavingexpert.com/discussion/comment/82106755#Comment_82106755

It seems my savings account isn't able to do that, it has to go through the GBP wallet. Perhaps I'm looking in the wrong place?

Wiredcharlie

Attracted by 5% for 6 months, I downloaded the app. First I decided to do some experiments so that I was sure I knew how to get money in and out of the 5% Savings account. Here is what I found out. (If I am wrong, please correct me!)

There are two ways to get money into the savings account.
1. From the wallet - shown as GBP balance - which is also used for international transfers.
2. Direct from your current account via Truelayer.

(There is no option to transfer directly in or out of savings using account number and sort code).

Wallet is subject to daily limits, so is not very useful for transferring savings. The Truelayer connection with your bank does not have the same limits.

Money in - so far so good. So how to get money out. The savings account does not have a withdrawl option! The only option (I see) is to move money first to the wallet, and then to my connected bank. There is no direct option to transfer back to my bank. But, wallet transfers are subject to daily (£10k), weekly (£20k) and monthly (£40k) limits.

There is no option, that I can see, that allows direct transfer, back to the Truelayer connected account, that is not subject to the limits imposed by the wallet.

For the sake of argument, if you deposited the maximum of £250k, it would take 7 months to take it out again!

Wiredcharlie

https://forums.moneysavingexpert.com/discussion/comment/82106755#Comment_82106755

No, they haven't, despite what their FAQ may lead you to believe.

flaneurs_lobster

It looks like the LemFi savings product is a bit of a bolt-on just for the UK market.

Wonder if the withdrawal limits are the cash transfer limits that actually apply to the money transfer services which are their main business?

They are using

In the United Kingdom, RightCard Payment Services Limited is the trading name for LemFi and is registered with the Financial Conduct Authority as an Electronic Money Institution 

and no doubt that company will have limits agreed with the regulator and the regulations thereunder.

Stoooooozer

was considering it.

but, it has never been recommended on MSE for best savings accounts as far as i can see - a search doesn't reveal anything

so, I guess it's one to question - if the rate is good and the provider is good, why doesn't it get recommended (accepting it has a limited bonus rate period but plenty of those recommended have that as indeed many of them also have financial / transfer limits too)?