🔔 What’s new with Raisin UK?

Raisin UK has recently joined forces with Starling Bank. But what does this mean for savers?

Those of you who have a Raisin UK account or have been looking to open one, may have noticed that their website has been unavailable recently as it has been undergoing some improvements.

A key change to the Raisin UK service is the launch of the new Raisin UK Account. To put it simply, Raisin UK has now teamed up with Starling Bank to supply the hub account for the platform. So, anyone new to Raisin UK since the website update will automatically have access to the new account and website.

For those of you who have not heard of Starling Bank, it is a mobile-only digital bank based in the UK. It gained its Banking Licence in 2016 ahead of its formal launch in 2017, so like any other legitimate bank is authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority and the PRA.

The Raisin UK Account enables you to deposit money that will then be sent to the savings accounts that you subsequently choose via the platform. The good news is that once you deposit the money into the Raisin UK Account, funds of up to £85,000 are protected by Starling Bank’s Financial Services Compensation Scheme licence, before it is then sent to your chosen savings account.

It’s worth noting that if you have other accounts with Starling Bank outside the Raisin UK platform, this will also form part of the £85,000 protected funds.

One of the key benefits to this change is that the funding window to get all the cash from your current account into the Raisin UK Account before it is then sent to your chosen savings accounts, has been extended. For most of the savings accounts, this funding window was just five business days – this has now been extended to as much as 56 business days on some of the products.

Of course, as the money in the Raisin UK Account earns no interest until it is distributed to the savings account with one of the partner banks, it still makes sense to get the funds over to your Raisin UK Account as soon as possible, so that it can be forwarded to its new home where it can start earning interest. However, this extension is beneficial for those who are restricted on the daily amount that they can transfer from their current account to Raisin UK.

What does this mean for customers who subscribed pre-Starling?

If you already held a savings account via the Raisin UK platform before the partnership with Starling, you should have received an email and letter to explain that you needed to opt into the new Raisin UK Account – at which point all of your existing accounts would have been transferred onto the new system. So, if you have opted in, your new Raisin UK Account is ready for you to log in to and you will be able to see all your products.

If you already hold a savings account via the Raisin UK platform but haven’t yet opted in to the new services from Starling, you’ve missed the opt-in deadline so will now need to re-register for a new Raisin UK Account if you want to make any further deposits.

Your existing savings products won’t be affected if you don’t re-register and they will mature as stated in the product descriptions when you opened the accounts.  It’s just that you won’t be able to open any new savings products through the old Raisin UK marketplace.

What if I didn’t opt in, but now I want to purchase new savings products?

If you are already a customer and would like to purchase new savings products, you must re-register as a new customer if you haven’t already opted into the new Raisin UK Account. You will then have access to the new Raisin UK Account here https://banking.raisin.co.uk, where you will see all your newly purchased products.

But you will have to view any old savings accounts via your old Raisin UK customer portal here https://account.raisin.co.uk/ until your existing savings product(s) have matured, after which your deposit and any interest or profit will be returned to your nominated account. Your old Raisin UK customer portal will then be closed.

For answers to any other questions you may have, there is a comprehensive Frequently Asked Questions section on the Raisin UK website. If there are still unanswered questions, then please ask us and we’ll do our best to answer them.

What does Raisin UK currently have on offer?

The Raisin UK platform currently has a number of fixed rate bonds available with terms ranging from nine months to five years. And at the moment, there is a welcome bonus of up to £100 for new customers when they fund their first product through the Raisin UK platform.

Those saving £10,000 to £39,999 will receive a bonus of £25 to add to the interest they earn on the first savings account they choose. Savers with £40,000 to £79,999 will receive £80 and savers with £75,000 and over will receive a £100 bonus.

The bonus amount depends on how much you deposit but can boost a competitive rate to a market-leading one.

For example, Bank & Clients is paying 1.90% gross/AER on its 1 year fixed rate bond via Raisin UK. On a balance on £10,000 that would mean earning £190 over 12 months. But if you add the £25 bonus, that means you would take home £215 gross which equates to 2.15% gross/AER.

Even with the maximum balance of £85,000, once you add the £100 bonus, the overall return equates to around 2.02% - so still a competitive rate especially if simplicity and ease of application is important to you. Once you are a customer you can open and fund new savings accounts by logging into your Raisin UK Account and choosing from what is available. You don’t have to complete an application each time.

To read more about Raisin UK and the products they have at the moment, take a look at our Platform Provider Focus or simply explore their website.

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