Provider Focus – Vanquis Bank

26th June 2015

We are often asked for more information on various savings providers that are less well-known or new to our Best Buy Tables. 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 Vanquis Bank, following a number of requests for information from our clients and the fact that the provider has featured prominently on our Fixed Rate Bond Best Buy Tables for some time now.

Background Information

It is worth noting first of all that all providers that feature in our Best Buy Tables must be authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA). Providers must also be a member of the Financial Services Compensation Scheme (FSCS) or equivalent robust scheme. Vanquis Bank is no exception and ticks all of these boxes, so your funds would be protected up to £85,000 per person.

Vanquis Bank is part of the Provident Financial Group, a FTSE 250 company that specialises in providing credit products in the UK non-standard lending market. Vanquis Bank was set up in 2002 as a credit card provider, with operations based in London, Chatham, Bradford and Newcastle.

In July 2011, Vanquis Bank entered the savings market by launching Vanquis Bank High Yield, a section of the bank dedicated to the provision of fixed rate bonds, with operations based in Newcastle.

Today’s Savings Market

Challenger Banks like Vanquis Bank tend to focus on the Fixed Rate Bond and Notice Account categories, with a few notable exceptions. At the time of writing, Vanquis Bank specialises in Fixed Rate Bonds and has regularly appeared in the Savings Champion Best Buy Tables. In fact, Vanquis Bank has been Highly Commended in the Best Fixed Rate Bond Provider category in the Savings Champion Awards for 2 years running, further underlying its consistency in offering competitive interest rates.

It is also worth noting that the provider offers a full range of fixed rate terms, from 1 to 5 years, unlike many providers in today’s savings market. What is particularly interesting is that Vanquis has increased some of its fixed rate offerings, leading to its bonds featuring in the top five accounts for each of the terms featured in our best buy tables, something that we haven’t seen any provider do for well over six months. Not only that, but the provider now offers the market leading rate for both 4 and 5 year terms.

If you would like further details, please contact us on 0800 321 3581 to talk to one of our savings experts.

Application Process and Customer Service

The first point to note with Vanquis Bank is that the Fixed Rate Bonds must be applied for online, so this will not suit those who prefer not to use the internet. However, in our experience and based on feedback from our clients, the application process is straightforward.

Based on feedback we have received from savers who use our services and our Concierge Department, Vanquis Bank’s customer service is good and we certainly have not been made aware of any negative experiences. Of course, as mentioned earlier, your thoughts and experiences about providers’ customer service are invaluable for us, so please continue to get in touch. 

A final word…

It is a simple fact that many of the best rates on the market today can be found amongst providers that are less well-known or that some savers may not have even heard of. Apart from High Interest Paying Current Accounts, well-known providers rarely offer rates that allow them to feature in our best buy tables, as much as they have in the past, so in order to earn as much interest as possible, savers will most likely need to look at an alternative to the high street including Challenger Banks and Vanquis is no exception.

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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