Charter Court Financial Services launches new challenger savings bank – high interest and online-only
Britain is set to get another savings bank as the wave of new firms receiving licences from the regulator continues to grow.
Charter Court Financial Services yesterday said it had gained approval from the Prudential Regulation Authority to launch Charter Savings Bank.
It will be an online-only savings bank, and its establishment opens up a new channel of funds for the group to use for lending.
The bank is promising relatively high interest rates on savings, at a time when depositors have been crushed by ultra-low rates.
By forgoing a high street presence, the bank hopes to cut costs, thus allowing it to offer higher rates.
Previously, Charter Court has focused on selling mortgages through brokers using the Precise Mortgages brand, and on analysing loans for banks under its Exact Mortgage Experts label.
The firm has hired ex-Shawbrook Bank director Paul Whitlock as its director of savings, bringing in an executive with experience of running a challenger bank.
It hopes to launch the service in the first half of 2015.