Raisin to launch deposit accounts in Ireland in weeks, AIB entering Germany

[ardmacha]

The Czechs have a debt/GDP ratio of 45% or so and can print their own currency. This gives them a decent capacity to stand over their guarantee, although I don't know much about their banking system.

Grenke bank is rated BBB+ by S&P, similar to Commerzbank and Deutsche Bank. Sistema are BB, ALior is much the same.

 

[Lightning]

Not instilling much confidence would be my immediate reaction. Nigerian bank?!

A good article on who First Save are is here.

Who and what is FirstSave?

FirstSave is part of First Bank of Nigeria plc – one of Nigeria's largest banks and with headquarters in Lagos.

In 2002, First Bank of Nigeria set up FBN Bank (UK) as a wholly-owned subsidiary with the aim of providing a London bank for Nigerians either visiting or resident in the UK.

Until July 2007 the UK arm only managed money for businesses and wealthy individuals. Then FirstSave was launched to offer easy access accounts and fixed-rate bonds and break into the UK savings market.

Its Nigerian parent company has a much longer history. It was founded in 1894 by Sir Alfred Jones, a shipping magnate from Liverpool.

Sir Alfred, a silver trader, wanted to replace Nigeria's bartering culture with sounder banking practice. His tiny outfit began in the offices of Elder Dempster & Company in Lagos and has expanded to the global operation it is today.

So do my savings get sent back to Nigeria?

No. As a wholly-owned subsidiary, FBN Bank (UK) deposits are held in the UK.

What if FirstSave goes bust?

Don't worry. Your money is protected by the Financial Services Compensation Scheme (FSCS).

If FirstSave's Nigerian parent company went bust, the first £85,000 of your savings would be repaid (£170,000 for joint accounts) from 1 January 2011.

This is the same level of protection on offer at all other UK banks or building societies, from HSBC to Nationwide.

 

[alwaysonit]

There are 12 banks in the Raisin marketplace at launch.

• AIB. Irish guarantee.
• Alior Bank. Polish Bank. 27 billion in deposits, 8,000 workers, 831 branches. More here (Google translation required). Polish guarantee.
• Bulgarian American Credit Bank. Small Bulgarian bank. More [broken link removed]. Bulgarian guarantee.
• Banca Sistema. Small Italian bank. More here and here. Italian guarantee.
• BN Bank. Mid sized Norwegian bank. More here. Norwegian guarantee.
• FiBank. Small Bulgarian bank. More here. Bulgarian guarantee.
• First Save. Small UK bank, owned by a larger Nigerian bank. More here. UK guarantee.
• Grenke. Mid sized German bank. More here. German guarantee.
• Hansetic Bank. Small German bank. More here. German guarantee.
• J&T Bank. Small Czech bank. More here. Czech guarantee.
• Podravska Bank. Small Croatian bank. More (Google translation required). Croatian guarantee.
• Novo Banco. Portuguese bank. Recently bailed-out by bond holders. WSJ article here. Portuguese guarantee.

Not exactly a list of strong banks.

I would personally trust the UK guarantee, the Irish guarantee, the German guarantee and the Norwegian guarantee. Probably, also the Polish guarantee.

I am not sure I would put money in a Bulgarian bank, a recently bailed out Portuguese bank or in small / tiny Croatian, Czech and Italian banks.

Thoughts?

This is interesting. Are you just going by the credit ratings for each company or do you know know much about the guarantee about all of the countries? Czech Rep have a higher credit rating than Ireland.

 

[Lightning]

Fair point that the Czech Rep guarantee is backed by a government with a high credit rating. Concern came from how small a bank J&T is and more broadly about how some, but not all, of the banks that Raisin have partnered with do not seem to be the strongest bunch of banks.

 

[MrEarl]

.... and more broadly about how some, but not all, of the banks that Raisin have partnered with do not seem to be the strongest bunch of banks.

One of the key reasons they offer competitive rates, don't you think ? Ultimately, this is risk versues reward, strong more well established banks are deemed lower risk, so don't have to pay the same rate for their cash deposits etc. I think you know where I'm going.....

 

[Lightning]

Raisin have now launched in Austria.

Raisin say they will launch across Europe, via their English language site, "in just a few weeks". Higher rates, from a mixed bag of European banks, on the way.

 

[Lightning]

Raisin are apparently very close to launch.

13th bank has signed up to their marketplace.

Raisin, in Germany and Austria, are now offering instant access products as well as term deposit products.