You are here: Home - Saving & Banking - News -

Ford Money closes 4% savings accounts to new applicants two days after launch

0
Written by: Paloma Kubiak
24/05/2017
Savers looking to open the market-leading Ford Money regular saver accounts paying 4% have missed the boat as they are both now closed to new applicants.

Ford Money launched its regular saver account and regular saver cash ISA products paying a head-turning 4% just two days ago.

Following huge demand, the regular saver account closed to new customers yesterday and the regular saver cash ISA closed today.

Due to the tremendous response from savers who are more used to seeing rates hovering around the 1% mark, Ford Money said it will potentially release similar products later in the year.

Short-lived top offering

Savers who managed to open one of the accounts will be able to stash away between £25 and £250 each month, meaning the most they can earn is £65.26 after 12 months (on the maximum £3,000). The amount that can be saved each month can vary so savers won’t be penalised if they don’t make deposits every month.

The 4% rate will be paid for the first 12 months but after this it will be moved to Ford Money’s flexible saver which currently pays 1% AER. The ISA will be moved to its flexible cash ISA, currently paying 0.9% AER.

Car manufacturer-come-new savings provider Ford Money operates a 14-day cooling off period on both products which means account holders can withdraw their money, or close their account, within that time without penalty.

However, after this time, those with the regular saver account won’t be able to withdraw their money or close their account within the first year. For those with the cash ISA product, withdrawals and transfers are allowed but you’ll lose 90 days’ interest on the amount taken out. But as the regular saver cash ISA is classed as a Flexible ISA, you’re allowed to withdraw and replace money in the same tax year without losing your tax-free entitlement.

Both products come under Ford Money’s ‘best rate guarantee’ which means if interest rates increase before you’ve made an initial deposit, the account will be automatically upgraded to the new rate. Savings also come under the Financial Services Compensation Scheme (FSCS) which means amounts of up to £85,000 are protected if anything were to go wrong.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
2285987-housepercent
First-time buyer activity strong across UK but London market cools

First time buyer activity increased year-on-year in every UK country except England as a fall in London buyers took its toll...

Close