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    • frogwoman
    • By frogwoman 7th Aug 18, 11:45 PM
    • 7Posts
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    frogwoman
    Barclays ring-fenced
    • #1
    • 7th Aug 18, 11:45 PM
    Barclays ring-fenced 7th Aug 18 at 11:45 PM
    Can anyone help? About 3 weeks ago I read on MSE about a savings scheme that is ring-fenced by Barclays. Unfortunately I didn't take down the details - and now I can't locate it anywhere on the site. Can someone point me in the right direction please. Many thanks.
Page 1
    • eskbanker
    • By eskbanker 8th Aug 18, 12:37 AM
    • 8,227 Posts
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    eskbanker
    • #2
    • 8th Aug 18, 12:37 AM
    • #2
    • 8th Aug 18, 12:37 AM
    Doesn't ring any bells but I don't really understand what you mean by a ring-fenced savings scheme, ring-fenced from what?

    The term is most commonly used to describe the reorganisation of legal entities within the major banks, which has had a minor effect on customers, who may have had their sort codes changed; is that what you're referring to perhaps?

    https://www.home.barclays/about-barclays/ring-fencing-explained.html

    If not, what aspects or features of the savings scheme do you recall being mentioned?
    • ValiantSon
    • By ValiantSon 8th Aug 18, 1:03 AM
    • 2,536 Posts
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    ValiantSon
    • #3
    • 8th Aug 18, 1:03 AM
    • #3
    • 8th Aug 18, 1:03 AM
    A bit of a wild stab in the dark, but are you thinking of Chip, which uses a Barclays account for their deposits?

    https://getchip.uk/faq
    Last edited by ValiantSon; 08-08-2018 at 1:06 AM.
    • frogwoman
    • By frogwoman 9th Aug 18, 2:20 AM
    • 7 Posts
    • 1 Thanks
    frogwoman
    • #4
    • 9th Aug 18, 2:20 AM
    Thank you both
    • #4
    • 9th Aug 18, 2:20 AM
    To eskbanker and ValiantSon:
    Thank you for your advice but I can't remember any more about the scheme except it said it was ring-fenced by Barclays. It wasn't Chip - I've just read up on it as the name was new to me. I'll just have to keep looking in the hope that it's mentioned again. But thanks for replying.
    • dunstonh
    • By dunstonh 9th Aug 18, 11:18 AM
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    dunstonh
    • #5
    • 9th Aug 18, 11:18 AM
    • #5
    • 9th Aug 18, 11:18 AM
    it isnt accounts that are being ringfenced. it is the retail banking arms that are being ringfenced.

    The objective of ringfencing is to remove retail banking from the risks of other types of banking. So, if we had a repeat of the credit crunch and Royal Bank Of Scotland was to fail like before, they could let the bank fail because the retail banking side is ring-fenced.

    Ringfencing can lead to a change in account number and sort code in a minority of cases. Although most will be unchanged.

    Barclays was the first bank to complete its ring fencing a few months back. According to Barclays, they "had to change a million sort codes". I suspect they mean a million accounts as they dont have a million sort codes. Indeed, the sort code system doesnt have enough digits to get to a million.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • eskbanker
    • By eskbanker 9th Aug 18, 11:58 AM
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    eskbanker
    • #6
    • 9th Aug 18, 11:58 AM
    • #6
    • 9th Aug 18, 11:58 AM
    it isnt accounts that are being ringfenced. it is the retail banking arms that are being ringfenced.
    Originally posted by dunstonh
    As above, I was thinking along the same lines as you, but I suspect that ValiantSon is closer to the mark.

    The weekly email from a few weeks ago did refer to:
    Is my money safe? Chip's not a bank - it works with 'e-money provider' Prepaid Financial Services (PFS); both are regulated by the Financial Conduct Authority (FCA). Your money is held in a ring-fenced Barclays account.
    so even though OP says that it wasn't Chip, there are a number of other fintech companies using Barclays in a similar way.

    https://www.moneysavingexpert.com/credit-cards/prepaid-travel-cards/ includes, for example, Revolut:
    Revolut is regulated by the Financial Conduct Authority, meaning money you deposit is ring-fenced (in a Barclays account)
    but it's a bit of a needle in a haystack search if there were no distinguishing or memorable features to go on other than the use of Barclays!
    • ValiantSon
    • By ValiantSon 10th Aug 18, 12:03 AM
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    ValiantSon
    • #7
    • 10th Aug 18, 12:03 AM
    • #7
    • 10th Aug 18, 12:03 AM
    Yes, the term ring fencing isn't being used accurately, but I was trying to think what kind of savings product was using Barclays for depositor accounts.
    • frogwoman
    • By frogwoman 12th Aug 18, 12:16 AM
    • 7 Posts
    • 1 Thanks
    frogwoman
    • #8
    • 12th Aug 18, 12:16 AM
    • #8
    • 12th Aug 18, 12:16 AM
    Thanks to all who have clarified the position. It really wasn't a travel card I was looking for but a savings vehicle.
    Incidentally, I use my Mastercard to buy euros through Sainsbury's bank - so I get M&S points and a better rate through my Nectar card - a win/win situation.
    Last edited by frogwoman; 12-08-2018 at 12:20 AM. Reason: spelling error
    • bowlhead99
    • By bowlhead99 12th Aug 18, 8:25 AM
    • 8,285 Posts
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    bowlhead99
    • #9
    • 12th Aug 18, 8:25 AM
    • #9
    • 12th Aug 18, 8:25 AM
    Incidentally, I use my Mastercard to buy euros through Sainsbury's bank - so I get M&S points and a better rate through my Nectar card - a win/win situation.
    Originally posted by frogwoman
    Meanwhile I just use my debit card to buy currency from an FX broker or bureau de change who offers better rates than Nectar.

    For example, today Sainsbury offers EUR 1,090.90 for 1000 without Nectar and EUR 1,093.10 with it; you would also get 50p worth of nectar points for using nectar (10 points for each full 100 of currency bought).

    https://www.sainsburysbank.co.uk/travel/nectar/index

    Whereas some other brokers would just give you a better rate in the first place, eg at AirgoFX, 1000 gets you EUR 1,096.

    https://www.airgofx.com/exchange-rates

    When about to embark on a holiday, those three extra euros from using a better broker are more useful to me than 50 nectar points and 200 sparks points for spending the thousand pounds on particular cards

    Also, don't M&S bank treat a purchase of foreign currency on your credit card as a cash advance rather than a purchase, where it isn't done at their own in-house currency exchange service? And thus charge interest immediately, as well as a 3% cash advance fee?. If so, it hardly sounds like a win win, to try to grab a few sparks points. If you use M&S's own service, you get fewer Euros than either Sainsbury or Airgo.
    Last edited by bowlhead99; 12-08-2018 at 8:42 AM.
    • ColdIron
    • By ColdIron 12th Aug 18, 8:56 AM
    • 4,729 Posts
    • 6,195 Thanks
    ColdIron
    EUR 1102.2 from John Lewis, that's an extra margherita

    https://www.johnlewisfinance.com/currency/rate-table.html
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