French car marker Renault has launched a new bank - RCI Bank - in the UK promising market-beating savings rates. The bank has kicked off with its online Freedom Savings Account offering easy-access and paying 1.5%, with no penalties, fees or notice periods as well as unlimited payments and withdrawals in return for a £100 minimum deposit. RCI is the only bank currently owned by a car company.
UK deposits not covered by FSCS
Savers should bear in mind that this account is not covered by the Financial Services Compensation Scheme (FSCS) but the equivalent compensation scheme in France.This provides protection of up to €100,000 (around £73k) if a provider goes bust, slightly lower than the £85,000 limit provided by the UK's scheme. The disparity is due to the strong British Pound and the knock-on effect to exchange rates – the crux for potential savers looking for 100 per cent safety is to keep your balance below the amount in pounds that applies to your account.
Savers should bear in mind that this account is not covered by the FSCS
Commenting on the launch, Kevin Mountford at MoneySuperMarket, said: “This is exciting news for consumers. The Freedom Savings Account matches the best rates available, and as the savings market has been flat for far too long now we hope a new player will help create the much needed competition to push interest up higher. Even savers with a limited pot should be able to benefit."
RCI Bank’s easy-access Freedom Savings Account is available exclusively through MoneySuperMarket from June 8 for two weeks. For more information click here.
- You can now save more in Premium Bonds. Find out about the new limit here.