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

Fresh competition for high street banks as RCI secures licence

Written by:
French bank RCI has secured a UK banking licence, meaning customers’ deposits are now protected by the UK’s Financial Services Compensation Scheme (FSCS).

As Groupe Renault’s dedicated finance company, it started out offering car finance. It was the first to move into the UK savings market and has been operating there for almost four years

Its Freedom Savings account currently has a rate of 1.42%; its one year fixed account sits at 1.71%, while its two year is at 2.11%. This compares to a current top rate of 1.96% for a one year fixed from Close Brothers Savings (source: Savings Champion) and 2.26% from PCF Bank for a two year fixed account.

The newly-authorised UK entity RCI Bank UK Limited will trade as RCI Bank and operate under the control of a newly established board of directors.

Jean-Louis Labauge, chief executive officer of RCI Bank, said: “We have been in the UK savings market for almost four years and are committed to our future here. We had the opportunity to strengthen our roots in Britain and are absolutely thrilled that we’ve now secured our UK banking licence. Nothing changes for our customers, except the protection of their deposits simply moves to the FSCS and our footprint in the UK market is further strengthened.”

RCI’s licence comes at a time when a number of other groups are also securing licences, putting pressure on high street banks. For example, Chetwood Financial and peer to peer lender Zopa secured banking licences in January and December respectively, while currency exchange group Revolut secured a European banking licence last year.

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.

Everything you wanted to know about ISAs…but were afraid to ask

The new tax year is less than a fortnight away and for ISA savers or investors, it’s hugely important. If yo...

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

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.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week