Shawbrook Bank

Shawbrook Bank Savings Review

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In this Shawbrook Bank savings account review, we take a closer look at this specialist UK savings provider to help you decide if they are the right choice for you. 

Getting a decent return on your savings has been a huge challenge for over a decade now. This is why many savers are heading away from traditional high street savings providers and looking at alternatives instead.

Shawbrook Bank* is one such alternative savings account provider. But who are Shawbrook Bank? What types of account do they offer and are they the right savings account provider for you? Find out in this review.

Who Are Shawbrook Bank?

Founded in 2011, Shawbrook Bank is a specialist UK savings account provider and they also lend money out too. The company is fully regulated by the Financial Conduct Authority. Shawbrook’s savings accounts are also protected by the FSCS (Financial Services Compensation Scheme). The company have over £5.5 Billion of deposits from both business and personal customers.

What Savings Accounts Do Shawbrook Offer?

The Shawbrook Bank savings accounts broadly fall into 4 different categories. These are their Fixed Term Accounts, Notice Accounts, Cash ISA Accounts and Easy Access Accounts. You can apply online* for any of these accounts.

Let’s look at each to help you work out which, if any, might be right for you.

Shawbrook Bank Fixed Term Accounts

Shawbrook’s Fixed Rate Bonds are currently available for terms of between 1 and 7 years.

The benefit of these fixed rate accounts is that you’ll know exactly how much interest you’ll be paid each and every month. The trade-off is that your money will be tied up in the account for the duration of the term. So, if you think there’s a chance you might need access to your savings in the short term, then this may not be the right option for you.

The other thing to consider is whether you might be better off going for a Cash ISA instead. A lot of this will depend on how much you have already subscribed into an ISA this year and also how much you’d like to put into the account. Shawbrook’s Fixed Rate Bonds, for example, allow you to invest up to £2 million, where you can only invest up to £250,000 into their ISA accounts.

At the time of writing the minimum deposit required to open a Fixed Term Account with Shawbrook* is £1,000.

All eligible deposits with Shawbrook Bank are protected by FSCS up to a maximum of £85,000.

Shawbrook Bank Notice Accounts

If you don’t want to commit your savings for a year or more but you are happy to do so for a few months or so in order to receive a better rate of interest, then perhaps a Shawbrook Notice account may be a better choice for you.

Shawbrook currently offers a 45 day and 120 day notice account for you to choose from.

These accounts offer less interest than you would get with a longer fixed term account but more than you would receive from an easy access account.

The key to understanding notice accounts is in the name. If you want to withdraw your savings from one of these accounts then you will need to give either 45 or 120 days ‘notice’ to Shawbrook.

With Notice Accounts it’s not just the interest that is lower than on Fixed Term accounts but the maximum balance allowed on the account is too. Shawbrook notice accounts currently have a maximum balance amount of £500,000.

At the time of writing the minimum deposit required to open a Notice Account with Shawbrook* is £1,000.

All eligible deposits with Shawbrook Bank are protected by FSCS up to a maximum of £85,000.

Shawbrook Bank Cash ISA Accounts

Now we come to the Cash ISA accounts offered by Shawbrook Bank. 

Shawbrook offers both Easy Access ISA and Fixed Rate ISA accounts 1 – 5 years. The minimum deposit to open any of these accounts is £1000 and the maximum investment is £250,000. You will obviously need to take your annual ISA allowance (currently £20,000) into account when considering maximum investment amounts. 

The obvious benefits of saving via an ISA instead of a standard savings account are the tax benefits on offer. For example, no income tax is due on interest earned.

The reward for depositing your cash for a fixed term will be a higher rate of interest than you would receive from an Easy Access ISA. 

You can also transfer an existing ISA to Shawbrook Bank. It would be advisable to do this when you open your account, as transfers requested at a later date may be refused according to the ISA key product information sheet.

At the time of writing the minimum deposit required to open a Cash ISA with Shawbrook* is £1,000.

All eligible deposits with Shawbrook Bank are protected by FSCS up to a maximum of £85,000.

Shawbrook Bank Easy Access Accounts

Finally we’re looking at the Shawbrook Bank Easy Access Accounts.

If you don’t feel comfortable tying your money up for any length of time, then an Easy access account could be a good option for you.

While the usual £1000 minimum deposit amount also applies with the Shawbrook Easy Access Account, the maximum balances allowed are slightly lower than with some of their other accounts. Maximum allowable balances currently sit at £85,000 for sole accounts and £170,000 for joint accounts.

All eligible deposits with Shawbrook Bank are protected by FSCS up to a maximum of £85,000.

Opening an Account With Shawbrook Bank

Now that you know more about the types of savings account Shawbrook offers, you might be wondering how easy it is to open one? Well the good news here is that you can open an account online* in a matter of minutes. 

The Shawbrook website is also really easy to find your way around and is very transparent too.

There are certain eligibility criteria you will need to meet to open an account. These can be seen on the image below.

Summary

Savings providers like Shawbrook bank are becoming increasingly popular as savings rates continue to stagnate. It’s good to know that Shawbrook is fully regulated by the FCA and that deposits are protected by the FSCS. I also feel that the Shawbrook website is very easy to navigate and that they are really transparent about the potential pros and cons of their various products.

If after reading this review you feel that Shawbrook is the right option for you then you can open an account here* quickly and easily.

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