RCI Bank switches its 75,000 UK savers into FSCS after four years of French deposit protectionRCI Bank is the UK financial arm of car
RCI Bank switches its 75,000 UK savers into FSCS after four years of French deposit protection
- RCI Bank is the UK financial arm of car manufacturer Renault
- Cash was previously covered by French deposit protection scheme
- All existing customers will have accounts moved to FSCS cover
- It set up in Britain in 2015 and has previously topped the best-buy tables
George Nixon For Thisismoney.co.uk
RCI Bank, the UK-based financial arm of car manufacturer Renault, has obtained a banking licence in Britain, nearly four years after launching.
It means that customer deposits will now be protected up to £85,000 by the Financial Services Compensation Scheme.
RCI confirmed that its 75,000 existing savers will have their accounts moved over to ensure they are covered by that protection.
The French-owned bank previously covered savers’ money with a French deposit guarantee scheme with a limit of €100,000.
Car bank: RCI employs 300 people in its office in Hertfordshire and had 75,000 customers in 2017
It set up offices in Maple Cross, Hertfordshire, in June 2015, offering UK customers savings products, and became one of the first car manufacturer-related financial companies to do so in this country.
It has since won awards and has previously topped the best-buy tables.
However, its easy-access freedom savings account is the only one which remains in This is Money’s tables, which pays 1.42 per cent on deposits of £100 or more.
It can be beaten by a number of other easy-access accounts, including a 1.5 per cent rate from Marcus Bank and Virgin Money.
Another car bank – Ford Money – also offers savers a 1.42 per cent easy-access deal.
The RCI Bank savings rate can be opened online and also managed by phone and by post.
Savers’ money is used as finance to lend to car buyers.
We previously reported in 2017 that RCI could have been forced into obtaining a UK banking licence to accept savers’ cash after Brexit.
Experts said the Bank of England was likely to require consumer-facing banks to obtain their own banking licences, as regulators would not want UK savers to lose cash if a foreign-regulated bank went under.
Jean-Louis Labauge, the chief executive and executive director of RCI, told This is Money: ‘We have been in the UK savings market for almost four years and are committed to our future here.
‘We had the opportunity to strengthen our roots in Britain and are absolutely thrilled that we’ve now secured our UK banking licence.
‘Nothing changes for our customers, except the protection of their deposits simply moves to the FSCS and our footprint in the UK market is further strengthened.
‘This is an important milestone for us as a French bank with a British home.
‘We’ve been on an exciting journey since launching in the UK savings market in 2015 and have always been committed to offering a breadth of simple products, underpinned by great service and a commitment to transparency.
‘In a recent survey of customers, 85 per cent said they know they can rely on us to deliver on our promises and that they trust us, and we look forward to continue offering competitive rates and outstanding customer service for many years to come.’
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