An agreement for the sale of Bank of Cyprus UK Limited has been reached, which is expected to be completed by the end of 2018.
Bank of Cyprus holdings plc has signed a binding agreement to sell its UK subsidiary, Bank of Cyprus UK, to Cynergy Capital Limited - subject to regulatory approval.
This is an important announcement for many savers, as Bank of Cyprus UK has been a prominent name in the savings market over the last few years and is regularly featured in both our easy access best buy table and our one year fixed rate cash ISA table.
The provider also put in a strong showing in our 2018 awards, winning the award for short term fixed rate cash ISA provider and was a finalist in three other categories, including best easy access account provider.
This means that there will be many existing customers - and also those looking to place funds with the provider - who will be wondering what this means for them.
Fortunately, Bank of Cyprus UK has provided a comprehensive set of Q&As on its website to cover many of the questions that will have arisen from the announcement, but there are some key points to highlight for those who may have concerns about the safety of their money.
Firstly, and key for many savers, funds held with the Bank of Cyprus UK will still be covered by the Financial Services Compensation Scheme (FSCS) following the sale, up to a limit of £85,000 per person. The bank will remain a UK incorporated and authorised bank.
The overriding message from the Bank of Cyprus UK is that it will be a case of ‘business as usual’, with no change to the facilities, agreements, terms and conditions or relationships with its customers as a result of the sale.
The bank going forward will be rebranded as ‘Cynergy Bank’, with the name reflecting the bank’s Cypriot heritage in a clever play on the word synergy.
For further information, click here for the full set of Q&As on the Bank of Cyprus UK website or call us on 0800 011 9705.
So, with the information available so far pointing towards business as usual as far as Bank of Cyprus UK is concerned, it will be interesting to see whether it retains its competitive edge and maintains its place in our best buy tables.
Certainly, at this stage there is little to be concerned about for existing customers and no reason not to consider using the provider while the sale process runs its course – of course sticking to the FSCS limit remains a sensible plan if you do have any concerns.
We will, of course, bring you more information as and when we get it and will be watching closely over the next few months to assess the impact of this announcement.
If you need any help with finding the accounts that are most suitable for your needs, please call us on 0800 011 9705 to speak to one of our expert savings specialists.
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