EXPIRED: Gatehouse Bank/Raisin UK offering 2% AER on 12 month fixed term accounts plus £50 bonus

karlie88 · 10 June 2018 at 9:51AM

EXPIRED - A NEW TIERED BONUS OFFER IS AVAILABLE NOW. Please ignore the below and go to the Raisin UK website to see details about the new offer.

Signed up to this yesterday and thought it was a good deal.

Raisin UK is a marketplace for savings account. You have one set of log-in details but can apply for savings accounts from different providers (currently 3 available but looks like it'll expand to more).

They're also running a £50 bonus for any new customers who open and fund a savings account with them.

For me the top pick is:

Gatehouse Bank - 2% AER on their 1 Year Fixed Term Deposit (Raisin Issue). Minimum deposit of £1k.

They also have:

Shawbrook Bank - 1.65% AER on their 18 Month Fixed Term Deposit - Raisin Exclusive. Minimum deposit of £1k.

Both have FSCS protection.

Website: https://www.raisin.co.uk

I've gone for £1k in Gatehouse Bank @ 2% AER. This is currently the second best 1 year fixed term savings account (Atom currently offering 2.05%).

You need to email Raisin UK to claim the £50 bonus but it seems very simple to do.

£20 'interest'/profit for me and, most importantly, an extra £50. My way of thinking is 7% AER on £1k or 2% on £1k plus £50 for about 10 minutes work.

Hope the above helps.

bowlhead99 · 10 June 2018 at 10:30AM

You mention the rates are 'raisin issue' or 'raisin exclusive', but the same rates at Shawbrook and Gatehouse can be obtained directly from their own sites. As you say, the free cashback is the 'most importantly' bit - really, it's the only reason to take the risk of putting an intermediary between you and the bank.

Note the Gatehouse one is a Shariah-compliant rate, so not really an interest rate (though in practice, it should be effectively the same thing).

keyboardworrier · 10 June 2018 at 11:16AM

Signed up for this yesterday it's a great deal. I would advise people to sign up ASAP because Octopus Cash had a similar offer on, but then changed the terms due to high demand

Deneb · 10 June 2018 at 12:01PM

bowlhead99 wrote: »

As you say, the free cashback is the 'most importantly' bit - really, it's the only reason to take the risk of putting an intermediary between you and the bank.

Yes, £50 each for me and Mrs D. Thank you OP

alanq · 10 June 2018 at 12:37PM

bowlhead99 wrote: »

You mention the rates are 'raisin issue' or 'raisin exclusive', but the same rates at Shawbrook and Gatehouse can be obtained directly from their own sites.

The 1.65% on Shawbrook's site is for a 12-month account whereas the Raisin exclusive 1.65% account is an 18-month one.

bowlhead99 · 10 June 2018 at 12:50PM

alanq wrote: »

The 1.65% on Shawbrook's site is for a 12-month account whereas the Raisin exclusive 1.65% account is an 18-month one.

Ah thanks, hadn't spotted that. So the exclusivity is having to lock in longer to get the same rate.

I suppose that's ok if you have a specific need for the cash in 18 months and/or you fear rates will be lower a year from now when the standard one year bond matures. Which I suppose could happen if Brexit goes badly and market rates are cut.

Alexland · 10 June 2018 at 1:35PM

So far this tax year I keep getting sidetracked from my objective of filling our LISAs and S&S ISAs by all these pesky introductory offers from Ratesetter, Kuflink, Moola, etc. Now this could tie up a further £2k into next tax year for £20 interest + £50 bonus each. While that's quite attractive it might just be easier to try for a 7% return from the stock market?

I am a bit confused about the Gatehouse product - while I understand the 2% is profit rather than interest to meet their Shariah requirements it seems like they are only guaranteeing the initial capital not the profit? As such our return could just be the £50 bonus?

If your deposit amount returns a loss, we shall make good the amount of any shortfall that you may have suffered. You shall therefore be entitled to receive payment from us of the full amount that you had previously deposited with us

Alex

[Deleted User] · 10 June 2018 at 1:47PM

I'm really liking the sound of this, and especially the £50 bonus. I was thinking of applying for the Gatehouse Bank 1 Year account anyway. Does anyone see any pitfalls in putting an intermediary in place for the £50 offer?

Deneb · 10 June 2018 at 2:17PM

Alexland wrote: »

I am a bit confused about the Gatehouse product - while I understand the 2% is profit rather than interest to meet their Shariah requirements it seems like they are only guaranteeing the initial capital not the profit? As such our return could just be the £50 bonus?

From their own website:

The profit we share is the expected profit rate at the time you open your account. We monitor your account on a daily basis to ensure the expected profit rate will be achieved. If we believe the expected profit rate will not be achieved, we will contact you giving you notice of the new expected profit rate. You will then have the option to continue your account with us at the new rate, or close your account immediately with your original deposit returned, along with profit earned.

To date, Gatehouse Bank has always managed to pay its customers the expected profit rate.

AER offered is the Annual Equivalent Rate and it shows you what the gross rate would be if profit was paid and compounded each year.

masonic · 10 June 2018 at 2:19PM

Alexland wrote: »

I am a bit confused about the Gatehouse product - while I understand the 2% is profit rather than interest to meet their Shariah requirements it seems like they are only guaranteeing the initial capital not the profit? As such our return could just be the £50 bonus?

They monitor the "profit" daily and if they need to reduce it, you'll be notified and have the option to exit the fix penalty free with accrued "profit".

masonic · 10 June 2018 at 2:34PM

cmondynamite wrote: »

I'm really liking the sound of this, and especially the £50 bonus. I was thinking of applying for the Gatehouse Bank 1 Year account anyway. Does anyone see any pitfalls in putting an intermediary in place for the £50 offer?

To assess that risk, you'd need to check the FCA register. The company behind Raisin UK is Resolution Compliance Limited. It is authorised and regulated by the FCA, but lacks the specific FCA permission to hold client money. This activity has been outsourced to a company called Meteor Asset Management Limited (company number 5712610), which is also FCA regulated and has the necessary client money permission. Meteor must therefore ring-fence client money it holds on behalf of customers. It reports it has made a small profit in each of the last 3 years.

The risk would be that Meteor Asset Management went into administration while holding client money, and in that situation client money could be used to pay the cost of the administraion after first exhausting business assets. Any losses resulting from that would be subject to the normal FSCS compensation procedures.

EXPIRED: Gatehouse Bank/Raisin UK offering 2% AER on 12 month fixed term accounts plus £50 bonus

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