Friday 17 August 2018

Finance Fridays – Online only banks

We were looking at how the interest rate rise may affect you in last week's Finance Fridays. This week we are talking about online only banks. Each week another branch of one of the big banks closes. Many people do not go into a physical bank at all these days so can you do all of your banking via an app?

What banks are online only? - There are a number of them which have started up but the main ones are Atom, Fidor, Monzo, Revoult, Starling and Tandem.

What type of accounts do they offer? - They offer personal, joint, business and savings accounts but not all of them will have all types of accounts.

How do I pay in money? - Starling has made an arrangement with NatWest that you can go into one of their branches and deposit cash. They are also working on it so you can use the Post Office as well. For cheques you will need to post them to Starling. Not exactly cutting edge! Fidor does not provide for any cash or cheque deposits.

How do I get cash out? - You should be able to withdraw cash from most ATMs. Do check the terms and conditions of the bank as most have withdrawal limits on both the amount of cash you can withdraw and how often you can do it. Fidor allows the first three withdrawals from an ATM at no charge and after that it will cost you £1 per withdrawal.

I've lost my phone! - Contact the bank as quickly as possible. You should be able to do this by ringing them, a Live Chat or emailing them. Once you have passed security they should be able to disable the app on your device.

Do I need a mobile phone? - For some banks they use only apps and have no web portal or website.

What security features do they use? - As technology develops so does the personalisation of the security features. Many banks now use fingerprint ID and face recognition in addition to pass codes but it is up to you if you wish to share details with them.

What happens if they go bust? - Before you open an account make sure they are authorised by the Financial Conduct Authority (FCA) and the Prudential Regularity Authority (PRA). It is the PRA that issues the licences to companies to operate as a bank. They should also be members of the Financial Services Compensation Scheme (FSCS) which means up to £85,000 of your money is protected if the worst happens.

If you want to join in with this week's Finance Fridays then add your link to the linky below. Any post concerning financial matters is allowed. Full details here. It doesn't have to be published today as you have until 23.55 on Tuesday 21st August 2018 to join in.

Finance Fridays

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