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Ford Money ISA and Savings Account Review

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In this Ford Money ISA and Savings Account review, we look more closely at the different accounts offered by Ford Money to help you decide if one of their accounts could be the right place for your cash.  

At some point in our lives most of us in the UK will have owned a Ford vehicle. These days, though, most big car companies also have a huge finance arm to their activities too and some have chosen to also branch into offering ISAs and savings accounts. So let’s take a look at what Ford have to offer to savers like you.

What Savings Accounts do Ford Money Offer?

At the time of writing Ford Money* have 4 different types of savings account on offer, these being their Flexible Saver*, Fixed Saver*, Flexible Cash ISA* and Fixed Cash ISA*. As a general rule their Flexible savings accounts are easy access accounts with an unlimited number of deposits and withdrawals allowed at any time, and you can save in these accounts from as little as £1. Their Fixed accounts offer an improved interest rate in exchange for you being willing to lock your money away for 1 or more years and these accounts require a £500 minimum investment.

All of Ford’s accounts can be opened in under 10 minutes when you apply online* and they come with what Ford call their ‘Best Rate Guarantee’ which means that on flexible accounts you’ll always enjoy the same rates that new customers get – so you don’t get effectively penalised for being a loyal customer – and for fixed rate accounts if the rate offered rises between the time you open your account and you placing your first deposit, you’ll automatically get the higher rate, however if rates were to fall you’d still get the better rate that you applied for.

Now let’s examine each of their savings accounts in a little more detail. We’ve tried to give you all of the information you’ll need for each account in a simple to understand way.

Ford Money Flexible Saver

The Ford Money Flexible Saver* is an easy access account and you can open one with as little as £1.

With the flexible Saver account you can make deposits and withdrawals as frequently as you like and there are no penalties or charges for doing so.

The Flexible Saver is a variable rate account and this means the interest rate you receive can increase or decrease at any time, though you will be informed within 60 days of any decrease.

You need to be at least 16 years old to open a Flexible Saver account but as it’s not an ISA account, you don’t need to be a UK resident.

The current interest rate being offered on the Flexible Saver account is 1.16%/AER if you choose to have the interest paid monthly or 1.17%/AER if you opt for annual interest payment.

You can access and manage your account online and you can open more than one of these accounts if you want to save money for different things. You can also open a joint account with one other person if you wish.

Who’s it for? – If you don’t want to have your money tied up for a set period of time and for some reason you are not eligible for the Ford Flexible ISA product which comes with tax benefits, then the Ford Flexible Saver account might well be a good option for you assuming you are happy with the interest rate being offered.

Ford Money Fixed Saver

To open a Ford Money Fixed Saver* account you will need to deposit at least £500 for a period of either 1 or 2 years. As a reward for committing your money for a set period you will receive a more favourable interest rate of between 1.69% and 1.85% at the time of writing, depending on whether you lock in for 1 or 2 years and whether you have the interest paid monthly or annually.

Within the first 14 days of opening a Fixed Saver account, you have the right to cancel and withdraw your money as part of a ‘cooling-off period’. You can also make unlimited deposits in this time if on the other hand you feel like you haven’t invested as much as you would have liked to. After the 14 days your money will be locked away and withdrawals and deposits will not be permitted beyond this point.

You can open multiple Fixed saver accounts if you wish, but the combined balance of these accounts must not exceed £2,000,000.

Again, you must be 16 years old to open a Fixed Saver account with Ford Money but you do not have to be a UK resident and you can open a joint account with one other person.

Like all of Ford’s savings accounts the Fixed saver comes with their ‘Best Rate Guarantee’ which we explained earlier in this review and you can manage your account online.

Who’s it for? – If you don’t mind not having access to your money for a period of 1 or 2 years and you also for any reason aren’t eligible for the Ford Money Fixed Cash ISA which comes with tax benefits attached, then the Ford Money Fixed Saver might be a good choice for you if you are happy with the interest rate on offer.

Ford Money Flexible Cash ISA

With the Ford Money Flexible Cash ISA* you can combine the benefits of having easy access to your savings with the tax-free benefits of saving your money via a Cash ISA.

Similar to the Ford Money Flexible Saver account we looked at earlier, you can open a Ford Flexible Cash ISA with as little as £1 and the account comes with unlimited deposits and withdrawals penalty-free.

You will need to be at least 16 years old and as this is an ISA product, you’ll need to be a UK resident to open this account.

The Ford Flexible ISA is a variable rate account, so the rate offered right now may change over time, but you will be notified as to any change.

You can transfer in any ISA balances you have from previous tax years and you can deposit all or part of your ISA allowance (currently £20,000) in this account and you won’t pay tax on the interest received.

With a flexible ISA you can also replace any money you withdraw during a given tax year without it counting towards your ISA allowance, which is a great added benefit to make the most of your annual ISA allowance.

With the Ford Money Flexible Cash ISA, interest is currently paid tax-free at a rate of 1.00%/AER regardless of whether you opt for annual or monthly interest payments.

Another interesting feature is that you can split your ISA allowance across any of the Cash ISA products offered by Ford Money as long as your ISA allowance is not exceeded, meaning you could hold money in both Flexible and also Fixed Cash ISA at the same time if it makes financial sense for you to do so.

Again, the Ford Flexible Cash ISA comes with their ‘Best Rate Guarantee’ which we explained earlier and you can open your account and manage it online.

Who’s it for? – If you want to enjoy the tax benefits of investing in a Cash ISA but you don’t want to tie your money up and you also want to enjoy a competitive rate of interest with a trusted brand, then the Ford Flexible Cash ISA might be a good choice for you if you are happy with the interest rate being offered by Ford.

Ford Money Fixed Cash ISA

To open a Ford Money Fixed Cash ISA* you will need to deposit £500 or more for a period of either 1 or 2 years. As you will be committing your money for a fixed period of time, you will be rewarded with a higher interest rate than you would receive from their Flexible Cash ISA. The Ford Fixed Cash ISA interest rate is currently between 1.24% and 1.45%, depending on whether you fix in for 1 or 2 years and whether you want to have the interest paid monthly or annually.

Within the first 14 days of opening a Fixed Cash ISA account, you have the right to cancel and withdraw your money without penalty as part of a ‘cooling-off period’. After the 14 days you will still be entitled to withdraw your money during the fixed term, but any withdrawals or transfers out will be subject to a term breakage charge equivalent to 90 days gross interest on the amount you cash in.

You can deposit more money within the first 14 days after your application but no further deposits will be accepted after this time.

As with the Flexible Cash ISA, you can split your money across any of the Cash ISAs offered by Ford, meaning you can deposit some of your ISA allowance into their Flexible Cash ISA and some into their Fixed Cash ISA. You can also hold a Stocks and Shares ISA and an Innovative ISA (which are not offered by Ford Money) with another provider at the same time as saving into a Ford Money Cash ISA, as long as you don’t exceed your annual allowance.

Again, you must be 16 years old to open a Fixed Cash ISA account with Ford Money and as this is an ISA account, you will need to be a UK resident.

Like all of Ford’s savings accounts the Fixed Cash ISA comes with their ‘Best Rate Guarantee’ which we explained earlier in this review and you can also manage your account online.

Who’s it for? – If you don’t mind not having access to your money for a period of 1 or 2 years and you are able to make use of the tax benefits that come along with saving into a Cash ISA, then the Ford Money Cash ISA might be a good choice for you if you are happy with the interest rates on offer at the time.

Is your cash safe with Ford Money?

Eligible deposits with Ford Money are protected by the Financial Services Compensation Scheme (FSCS) up to £85,000, so should anything go wrong with the company you will be protected up to this amount. The company also uses encryption technology to protect your details and money online, and they also offer further advice on how to stay protected on their website.

Summary

We hope that this review of Ford Money’s savings accounts and ISAs* has given you more of an idea as to whether this is the right place for you to save your hard-earned cash and which of their accounts might best suit your own personal circumstances. If you want to set up your account right away then you can apply online today* and your new Ford Money account should be up and running in 10 minutes or less.

Note: Tax treatment is dependent on the personal circumstances of each customer and may be subject to change in the future

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