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Best Savings Rate: JN Bank UK and DF Capital launch good deals

Savers haven’t gotten much good news in 2020, even before National Savings & Investments made hefty cuts on the best buying rates three weeks ago.

The planned cuts from the treasury-backed bank, coming in next month, have basically pulled the rug out of what appeared to be a slight rebound in savings rates.

A spate of money in search of a new home has been blamed on the increasing downward pressure on banks ‘and building societies’ rates.

But savers have the suggestion of a better outlook in the form of two new banks offering competitive savings rates – JN Bank UK and DF Capital – that will help support the tables with the best buys.

But who are they, what do they pay and is the money of the savers safe?

Recently, new savings banks have sprung up that offer savers competitive deals

Recently, new savings banks have sprung up that offer savers competitive deals

The best buying provider that keeps it quiet

One of the banks that has recently opened accounts for savers is DF Capital, the banking arm of the publicly traded commercial lender DF Capital Holdings.

Its roots are much shorter than JN Bank, which we’ll detail below, as it was only founded four years ago. It received its banking license on October 2 following an application in August 2019.

Rather than going through the Bank of England’s ‘mobilization’ process, something often described as ‘training wheels’ that allow new banks to operate with a small limit on how much money they can hold, it immediately opened up and went straight to the top of the best buy tables with its first savings products.

It’s quietly done it, however, with what James Blower of The Savings Guru, an industry expert and adviser to savings banks, called a “ soft launch. ”

But there is nothing soft about the rates. It offers 1.18 percent on £ 1,000 or more on a one-year flat rate, the best non-sharia rate in our best buy tables and the second highest paying account overall after Al Rayan Bank’s 1 , 26 percent paid.

Meanwhile, it also offers a 1.12 percent notice account, which is the best rate in the market, according to analysts Savings Champion.

How do DF Capital’s new savings accounts compare to the market?
AccountRate itPlace in the tables with the best buy
One-year fixed interest1.18%2 (best non-sharia rate)
90 days cancellation period1.12%1

Both accounts can be opened online for £ 1,000 or more, while the bank will soon also launch fixed-rate 18-month, two-year bonds.

Given the recent cuts in fixed-rate short-term savings, and given its status as a new bank, Blower predicted that these best-buy rates would be cut “ in the coming days, ” meaning savers must act quickly if they want to take advantage.

The deposits are likely to be used to fund DF Capital’s commercial loans, where it provides supply and supply chain financing to UK businesses, including for vehicles and agricultural and industrial equipment.

Again, all savings up to £ 85,000 are covered by the FSCS.

Britain’s first Caribbean bank

JN Bank UK is not a brand new name in the city. It started as the Jamaica National Building Society in 1874 and has served the Caribbean island ever since, with offices in Toronto, Florida and the UK.

In return, it offers an easily accessible savings deal paying 0.55 percent of £ 1,000 or more, placing it in twelfth place in This is Money’s best-buy tables. There is also a contract for 0.8 percent fixed savings for one year.

It was restructured from JNBS to JN Bank in 2017 and is Jamaica’s third largest commercial lender.

It has been operating on UK shores since 1988 but has only been a full bank since December last year, becoming the first Caribbean bank to be offered a fully UK license.

JN Bank UK is the UK arm of Jamaica's third largest bank and has a number of competitive deals

JN Bank UK is the UK arm of Jamaica's third largest bank and has a number of competitive deals

JN Bank UK is the UK arm of Jamaica’s third largest bank and has a number of competitive deals

Based in Brixton, London, it makes much of its ties to its local community by stating on its website, ‘Can you think of another bank’s branch whose uniforms are designed by students and made by a local tailor’ .

The branch, near Brixton Tube Station and the O2 Academy music venue, is open Monday through Friday from 10am to 4pm and Saturdays from 10am to 3pm. Outside of these hours, it provides the physical space for local community groups.

However, the new range of savings accounts, launched last week after being fully licensed by the Bank of England, can only be accessed online or by phone.

All deposits are protected up to £ 85,000 by the Financial Services Compensation Scheme.

Previously, it offered a range of services aimed at immigrants from Jamaica and those with connections to the island, including a ‘vacation account’ that allows customers to open an account with Canadian dollars, pounds and US dollars and keep it in Jamaican dollars – giving them access have free to bank ATMs in Jamaica.

His savings accounts are open to all and will be used to fund his UK-focused loans, targeting those redecorating their homes, buying or refurbishing a new car, or consolidating existing debt.

How do JN Bank UK’s new savings rates stack up?
AccountRate itRanking in the This is Money best buy tables
Easy access0.55%12
One-year fixed interest0.8%14
Two-year fixed interest1%T-13
Three-year fixed rate1.2%6
Four-year fixed interest1.25%We don’t keep a table of four-year fixed-rate deals
Five-year fixed interest1.3%4

With regard to loans, borrowers can borrow between £ 1,000 and £ 15,000, repaid over a term of one to five years at an APR between 7.9 percent and 24.9 percent.

While it hasn’t gone straight to the top of our tables with its opening offer for savings rates ranging from the 0.55 percent easy access to 1.3 percent five-year fix, many of its flat-rate deals are competitive.

His one-year fixed rate pays 0.8 percent, his two-year 1 percent, his three-year 1.2 percent, his four-year 1.25 percent, and his five-year 1.3 percent. All of these can be accessed online or over the phone with £ 1,000.

However, as This is Money has previously written, there is very little premium in returns for fixation for more than a year right now, so savers can choose to avoid this unless they think rates will get even worse in the medium term turn into.

JN Bank UK's only branch is located in Brixton, South London

JN Bank UK's only branch is located in Brixton, South London

JN Bank UK’s only branch is located in Brixton, South London

THIS IS MONEY THE FIVE OF THE BEST SAVINGS DEALS

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