Provider Focus - Masthaven Bank

13th December 2016

Provider Focus – Masthaven Bank

We are often asked for more information on various savings providers that are of interest to savers. In this regular series of articles, we aim to turn the spotlight on these providers to give you more information about their background and history and why they are of particular interest in today’s savings market.

Alongside these articles, you may also find our Guide to Challenger Banks useful for more information on some of the banks that are seeking to break the monopoly of the big high street names.

We hope that you find this information useful and as always, if you have any feedback or suggestions as to who should appear in a future article, please let us know.

The provider chosen this time is Masthaven Bank, a new bank that launched at the end of November. As a new entrant to our best buy tables, we felt that this was the ideal time to give you more information on the provider and a good opportunity to get your feedback.

Background Information

Masthaven Bank is new to the UK savings market, but it has actually been in existence since 2004, providing bridging loans and secured lending since that time. Masthaven Bank obtained its retail banking licence in April 2016.

The provider is online focused, but states that it offers savings products that are tailored to customer needs, as opposed to a one-size-fits-all approach.

The bank’s headquarters are in London, with a UK-based contact centre, located in the same offices. Masthaven is a digital bank, but you are able to contact them by telephone with any queries or questions.

Masthaven Bank is authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA). Masthaven Bank is a member of the Financial Services Compensation Scheme (FSCS), so funds placed with the provider would be covered up to £85,000 per person, should the provider go out of business.

For more information on the FSCS, please take a look at our handy guide or call us on 0800 321 3581 to speak to one of our expert savings advisers.  

Today’s Savings Market

Masthaven Bank announced its arrival in the UK savings market with a range of competitive fixed rate bonds, with interest rates all good enough to see them enter our best buy tables. The most eye-catching of the new accounts is the 5 year bond, which at the time of writing is market leading.

Additionally, the provider gives you the option to choose your own term, which is a nice feature that is unusual to see in the savings market. This means that you can choose the exact term, up to five years, with the interest rate adjusted accordingly. For more information and to look at the rates on offer, please see Masthaven Bank's website.

Alternatively, you can just choose from a range of standard terms. The current interest rates are listed below, click on the links for more information.

1 Year Fixed Term Deposit Account - 1.35% gross/AER
2 Year Fixed Term Deposit Account - 1.53% gross/AER
3 Year Fixed Term Deposit Account - 1.67% gross/AER
4 Year Fixed Term Deposit Account - 1.84% gross/AER
5 Year Fixed Term Deposit Account - 2.01% gross/AER

For alternatives and to compare the accounts to the rest of the market, please take a look at our Fixed Rate Bond Best Buy Tables.

Application Process and Customer Service

You can only apply for the accounts above online and there is a relatively low minimum opening balance requirement of £500, which is lower than many alternatives on the market. Whilst online only applications are common amongst many of the top savings rates at the moment, this will not suit everyone, so those who do not have access to the internet or prefer not to use it for financial transactions, will have to look elsewhere.

That said, the application process appears to be straightforward and we haven’t received any negative feedback from those that have applied for the accounts.

Our Concierge department has had interactions with Masthaven Bank and their dealings with the provider have been positive overall.

Whilst it is of course early days, we have not been made aware of many negative experiences so far from any of our clients or from our own dealings with the provider. Of course, as mentioned earlier, your thoughts and experiences about providers’ customer service are invaluable for us, particularly with providers that are new to us or to the savings market, so please get in touch to share any feedback you have. 

A final word…

It is tempting to stick to the well-known brands when it comes to savings accounts, but in doing so, you may be missing out on some of the best rates on the market. Whilst there are some exceptions, for example High Interest Current Accounts, you can no longer rely on the larger brands and high street names to offer the best interest rates. Providers like Masthaven Bank are aiming to drive competition in the savings market and offer some of the best rates available at the moment. The best strategy is to look at all options and take each provider on its own merits, considering alternative providers to get the best returns for your money. As long as you do your research (or ask us for more information!) and are comfortable with the provider, there is no reason not to consider them.

As mentioned earlier, if there is a provider that you would like to see featured in a future article, please let us know. We are also keen to hear from you if you have any feedback about any provider’s customer service, good or bad! Please contact us at [email protected] to share your experiences.

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