Nigerian bank's First Save

tejer

I recently posted this in the wrong section, so apologies for reposting.

Since northern Rock I am looking for a spread of the best rates available in a mix of instant access and fixed rate accounts for my savings, based on keeping them below the 'safe' limits.
First Save seem to be very high, (especially Fixed rate at 7.1%) but I don't see them rated with Martin's top tips.
I see they are wholly owned by First Bank of Nigeria and are very young (since 2002).
Is there a reason why they don't feature?
They are covered by FSA.
Does anyone have views on the Nigerian bank safetywise?

This week's Moneybox on BBC Radio 4 had a guest who advised caution re the Icelandic banks (I have also read about Moody's cautionary note re Kaupthing) stating that if it (interest offered) looked too good to be true it probably was.
The Nigerian 'First Save' offers an even higher rate on fixed term a/cs than Kaupthing. Too good to be true?
tejer

Oblivion

Whilst I understand people's reluctance to deal with a bank linked to probably one of the most corrupt countries in the world, Nigeria, I don't think this should put you off.

FirstSave is a member of the British Bankers' Association and the FSA and is therefore covered by the FSCS guarantee of £35,000. I believe I read recently that, like Icesave, their administration is actually conducted by the Newcastle Building Society, but I haven't checked that.

Shame they don't seem to do ISAs.

Dave.

isofa

Depends if you have a moral standpoint on the issues in the country or not too... it's not all about the "best" rate.

Oblivion

isofa wrote: »

Depends if you have a moral standpoint on the issues in the country or not too... it's not all about the "best" rate.

It's a fair point, and as an angry young man I used to base many of my judgements on moral issues. I've probably become very cynical in my old age, but my only concern now is to maximise my income from the savings I've worked hard all my life to accumulate, and moral considerations can take a back-seat.

The British press are always keen to pillory any regime that doesn't comply with our own so-called 'standards', but when you look at the record of lies and deceit from numerous past and present UK governments, who are we to take the moral high ground?

No, for me anywhere safe and offering a competitive interest rate gets my custom. I'll get off my soap box now

Dave.

Sealy

I'm quite cynical too these days. The amount of mobile phone scams I get from nigeria is huge!

Oblivion

Sealy wrote: »

I'm quite cynical too these days. The amount of mobile phone scams I get from nigeria is huge!

Er, ok. But I can't see what that has to do with a National Bank operating a UK based outlet under FSA control and guarantees. There are plenty of back-street scams operating out of the UK, but that would not influence my judgement in picking a British financial institution.

Dave.

setmefree

Oblivion wrote: »

There are plenty of back-street scams operating out of the UK.

Dave.

LMFAO

Never has there been such true words .....10 Downing Street, House Of Commons, are just a few..
:rotfl::rotfl::rotfl::rotfl:

isofa

That's all fair enough, and everyone has a choice. We all have to make a decision on which we are personally comfortable. Some people avoid Icelandic banks due to their whaling policies, etc. Equally we all want the best return from our hard earned cash before the government try and take yet more off us via all manner of stealth taxes and a rocketing inflation rate.

No country is whiter than white, count up the abuses from countries including the UK and USA, and we'd be left with very little to invest in.

However personally I'd be uncomfortable supporting a country that is happy to execute it's population for minor crimes, this is well documented and happens daily. (Some greedy English have even supplied truck loads of gallows to allow them to do this more efficiently, how do they sleep at night?). Let alone all the corruption and brutality that goes on in other ways.

LongTermLurker

tejer wrote: »

This week's Moneybox on BBC Radio 4 had a guest who advised caution re the Icelandic banks (I have also read about Moody's cautionary note re Kaupthing) stating that if it (interest offered) looked too good to be true it probably was. The Nigerian 'First Save' offers an even higher rate on fixed term a/cs than Kaupthing. Too good to be true?
tejer

Must admit, I wouldn't touch a Nigerian bank with YOUR money, let alone mine I just think of the scams that are world-renowned and the fact that Nigeria, unlike Iceland or India, is a Frontier nation - it can't even be described as "emerging". What scares me most though is that you will have to give them details of another bank account that you have in the UK... Now think back to the scams asking for your bank details and ask yourself how much you would trust the network- and data security in a Nigerian - or any African - bank? I wouldn't.

There are a few banks offering high rates and the best idea is to pool your money around them. I don't even stand by the 35K rule; so long as a bank is FSCS regulated, the worst thing that could happen is a 3-6 month period when money isn't accessible and you lose out on interest. I would feel that there's too little %age difference between the Nigerian bank and the more established ones, so not worth the extra risk.

As to Iceland, I can see a few valid reasons why they might want to offer high rates - Icelanders live on credit (that, I know); they own pretty much nothing, so there is a lot of domestic borrowing. Also, the exchange rate for the krona is crap, so I can imagine why they might want to get their hands on some very valuable Sterling. But unlike Nigeria, Iceland is a first-world highly technology-aware industrialised nation (yes, really). As far as security goes, don't underestimate the supportive nature of the Nordic countries - they have their own "EEC"-type partnership and I believe in the support that will be offered between them, as has just been witnessed.

arabianights

I think it's worth doing just so you can tell bores at parties about how you've entrusted thirty five grand to a kind Nigerian gentleman you read about on the internet. The relatively small risk of having to rely on the fscs is worth it for seeing the looks on these irritating, mail reading, expensive curtain buying, cretins' faces.

Noname29

If you put your savings with a foreign bank dont moan when your UK bank puts your mortgage rates up !