Savings Market Boost As New Deals Launched | moneyfacts.co.uk

Derin Clark

Derin Clark

Online Reporter
Published: 17/06/2020

The savings market is set to become slightly more competitive as Castle Trust has been granted full authorisation as a bank and is planning to start offering savings accounts to customers in late July.

Castle Trust has been granted full authorisation by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA). The newly authorised bank has told Moneyfacts.co.uk that when it launches its savings products, it plans to offer competitive rates, so while it might not be marketing-leading, its deals will be among the top providers.

This is the second time this year a new provider has entered the savings market. Back in April, Allica Bank entered the market with the launch of a 12-month bond on the 1 April. Its 12 Month Fixed Term Deposit was launched with a rate of 1.49% gross, which was increased to 1.55% gross on 22 April but was withdrawn four days later on the 26 April. Since then, Allica Bank has launched two business savings accounts, but at the moment no longer offers a personal savings account.

Commenting on gaining its banking authorisation, Martin Bischoff, CEO of Castle Trust, said: “Being granted a full banking licence signals the start of the next phase of Castle Trust’s growth. Our first priority is to convert our 30,000 existing investment accounts into savings accounts, after which we look forward to launching our exciting new range of savings products in late July.”

Tim Hanford, managing director of J.C. Flowers & Co., Castle Trust’s majority shareholder, added: “Castle Trust’s achievement of a full banking licence is the culmination of a great deal of work over an extended period of time. The licence is the endorsement of the quality of this business at many levels. We have a terrific board and an exceptional team of people who deliver innovative products to our customers supported by a technologically advanced infrastructure with robust processes and controls. We look forward to continuing to be part of Castle Trust’s development and success, and remain excited by the opportunities for a nimble competitor in the UK banking market.”

Challenging savings market

Castle Trust Bank enters the savings market at a time when savings rates are falling rapidly, with many already at an all-time low. The falling rates have been in response to two base rate cuts in March and the current economic uncertainty. As such, news that a new provider will be launching competitive deals will be welcome to savers struggling to find attractive rates in the current economic climate.

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