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.
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 a recent entrant to the UK savings market, Redwood Bank – a provider that offers savings accounts for businesses and charities. As one of the newest additions to the market, this is an ideal time to give you some background information on the provider and a good opportunity to get your feedback from any initial dealings you have with them.
Redwood Bank launched in August this year and was set up to offer services to cater for small and medium sized organisations.
The journey towards this year’s launch started in 2015, with co-founders Jonathan Rowland and Gary Wilkinson’s aim to build a new, flexible bank for businesses.
Redwood Bank currently has two offices, in Letchworth and Warrington, which focus both on lending to their local communities and covering the rest of Britain through postal and online application channels.
In April 2017, Warrington Borough Council became a shareholder, the same month that Redwood Bank was granted its banking licence.
Redwood Bank Limited is authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA). Redwood Bank Limited is a member of the Financial Services Compensation Scheme (FSCS), so funds placed with the provider would be covered up to £85,000 per organisation, should it go out of business.
For more information on the FSCS, please take a look at our handy guide or call us on 0800 011 9705 to speak to one of our expert savings advisers.
Today’s Savings Market
It is fair to say that Redwood Bank entered the UK savings market tentatively at first, concentrating solely on notice savings accounts for businesses and charities, with interest rates that didn’t go straight into our best buys.
However, following a series of improvements to rates over the last few weeks, Redwood Bank now sits proudly at the top of our Business Notice Account Best Buy Table.
There are currently two notice accounts available, one with a shorter 35 day notice period and a longer 95 day account. For more information on the accounts, click on the links below;
The accounts are available to both businesses and charities and can be opened online or by post, with a minimum of £10,000.
For alternatives and to compare the accounts to the rest of the market, please take a look at our Best Buy Tables or call us on 0800 011 9705.
Application Process and Customer Service
You can apply for the accounts above online or by post, with a minimum opening balance requirement of £10,000. Online only applications are common amongst many of the top savings rates at the moment, so the option to open accounts by post may be attractive to those who prefer not to use the internet for applications.
The application process appears to be straightforward and whilst it is early days, we have not been made aware of any 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 about 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, you can no longer rely on the larger brands and high street names to offer the best interest rates.
Providers like Redwood 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.