Last week Harrods Bank stormed to the top of the 1 year best buy table, offering a rate of 1.90% gross/AER on a minimum balance of £20,000. Another good rate for savvy savers.
But while the Harrods brand is instantly recognisable, it is less well known in the savings market – and is likely to disappear soon. In August this year it was announced that, subject to regulatory approval, start-up provider, Tandem Bank, will be acquiring 100% of Harrods Bank and operating under the Tandem brand.
So, what does this mean for existing and new Harrods Bank savers?
Well, Harrods Bank has stated that they will be working closely with Tandem Bank to ensure a smooth ownership transition and once the agreement has been confirmed, the terms and conditions of the fixed term deposits will remain unaffected.
And as Tandem Bank does not currently offer any savings accounts, if your savings with Harrods Bank are below the Financial Services Compensation Scheme (FSCS) limit of £85,000 per person, full protection will remain as it will continue at the same level under the new brand.
So, in summary there is no reason to be concerned about this change and certainly no reason to not take advantage of what is a leading 1 year fixed rate bond rate.
There are no further details available at the moment, but the deal, if approved, is expected to bring around £80m of capital into the new business and accelerate Tandem’s launch plan to offer savings accounts to its customers. We’ll keep you informed as we hear anything further. In the meantime, if you have any questions, please do not hesitate to contact us on 0800 0119 705.