Triodos Bank NV has this week confirmed that it has secured a UK Banking Licence to operate a subsidiary company, Triodos Bank UK, which is authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and the PRA.
This means that the bank’s UK customers are now protected by the UK Financial Services Compensation Scheme (FSCS) with effect from 1st May.
Until now, UK customers have had protection in place, but from the Dutch Deposit Guarantee Scheme.
Like other European Banks - such as RCI Bank - that are committed to supporting their UK customers, Triodos has been working closely with the regulators to prepare for the implications of the UK’s exit from Europe, so this is good news.
Triodos Bank is an independent bank that promotes sustainable and transparent banking, something that is becoming more and more important to people, as the urgency of climate change grows.
Bevis Watts, CEO of Triodos Bank UK said: "We have seen strong growth in our UK customers – amounting to a 26% increase over the past three years. In these times of increased awareness around climate change and personal choices, our current account can inspire the people who make conscious sustainable choices in their daily lives to ensure their banking shares their values and is working to have a real, positive, impact on society. With our savings and investment options we offer the opportunity for people to see their money used to benefit them, their community and society in the long term.”
Triodos offers a fairly wide range of savings accounts - including fixed and variable rate cash ISAs – although they are quite some way from being included in our mainstream best buy tables.
That said, in most cases, they still offer far better value that the traditional high street banks, while also offering the opportunity for savers to see their money used for good – for a sustainable future.
For example, Triodos Bank UK’s Online Saver Plus is a restricted easy access account, offering three penalty-free instant access withdrawals per year – and pays 1% gross/AER. Compare this to the big five high street banks, which pay no more than 0.40% on their easy access accounts.
Its 33 day notice cash ISA pays 1.15% tax free/AER, while its fixed rate bonds and fixed rate cash ISAs pay between 1% and 1.30%, depending on the term. Again, far more than can be found on the high street.
So, the good news is that savers who are looking for more than just interest from their savings, don’t have to accept rock bottom rates.
If you have any thoughts on this or any other aspect of savings, do not hesitate to get in touch, we’d love to hear from you. Call us on 0800 011 9705 to speak to one of our savings experts.