Fanfare for a new savings provider…….ok maybe not

Author: Susan Hannums
17th May 2012

As one by one a number of banks and building societies seem to be merging (and merging FSCS licences I might add but that’s another story) up pops a new provider – with not a dog bowl in site (Metro Bank).

This week sees the launch GE Capital Direct, which could have hit the market with a fanfare but instead feels more like a damp squib. 

The bank claims to be launching accounts that respond to customers’ needs for simple savings, yet interestingly neither of its two new accounts is particularly competitive and one account comes with a short term bonus….which I’m sure doesn’t truly fit the simple savings idea and I’m more than sure when customers asked for simple, they also wanted competitive!

So what do the accounts offer?

The first easy access account is the GE Saver paying 2.35% gross/AER and the second is the GE Bonus Saver paying 2.65% gross/AER (including a 1.15% bonus for the first 12 months).

The problem is you can “simply” get better rates elsewhere, especially if you’re happy to use the internet. 

So the “simple” question is why opt for GE Capital? Perhaps it’s all in a name and feeling secure in the knowledge that GE Capital Direct is part of GE Capital (General Electric Company) a HUGE, well-known brand.  Certainly in these uncertain times the security of our savings pot is paramount so opting for a provider which feels secure may be the draw – but we wouldn’t really bother.

* GE Capital is covered and protected by the UK FSCS (Financial Services Compensation Scheme).

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