Online only Banks , Can you trust them ?

BADGER.BRAD

BADGER.BRAD

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Hello everyone,

I have a fix term ISA that is about mature and I'm looking at setting up another one. The best interest rates all seem to be from online/app based accounts which worry's me somewhat ( the problem with my ancient smart phone not being able to use modern apps and not being registered with Google is another thing at the moment ) Is there anyway I could give myself extra protection ?

Thanks all
 
I've used internet banking including internet only banks for years with no real internet issues. I've never used a smartphone or apps for this though, I do it on my pc by Googling my way to the bank.
 
As long as it’s fcsa registered it’s the same as banking with Barclays unless you have more than 85k.

Some online will pool the deposit though so if you put 50k in there, and you have 80k with Barclays, and they put 30k with Barclays you are not protected by more than 85k.

Online banks are great. So much better than normal ones. Apps are so simple too, than the more cumbersome websites. Can’t rate starling highly enough.
 
BADGER.BRAD said:
Hello everyone,

The best interest rates all seem to be from online/app based accounts which worry's me somewhat
Click to expand...
You can check the bona fides of a financial institution with the Financial Services Compensation Scheme, here...

www.fscs.org.uk

Banks, building societies and credit unions

If you have an account with a bank, building society or credit union that becomes insolvent, you could claim up to £85k. Click here to find out if your money is protected.
www.fscs.org.uk

..If the institution is registered there, it should be OK. However, it's a good idea to check the URL carefully against what the FSCS hold on their records.
 
Thank you everyone , you give me more confidence, there really seems to be a lot of difference with the interest rates paid
 
That's good. I've bought government bonds paying 4.375% in my ISA, alongside some solid shares yielding between 5% and 8% (subject to share price), but obviously these carry risk.
 
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