Ford Money launches drive to attract savers

They will offer a 'best rate guarantee'

Updated: 

Ford is motoring into the UK consumer savings market with the launch of a new range of "fair and consistent" products.

Savers will get "excellent" customer service with fair rates and straightforward products, Ford Motor Company's financial services business has promised.

The services on offer from Ford Money are available online and by telephone.

The provider has also said it will not be offering short-term bonus rates to attract new customers at the expense of existing customers.

A "best rate guarantee" offered by Ford Money across variable rate products means existing customers will not be worse off than new customers on like-for-like products.

On fixed rate products, customers will receive the interest rate shown at the time they apply, or if the product rate increases before the initial deposit is made, they will receive the higher interest rate.

Concerns have been raised in recent years over some savings providers leaving long-term customers in "zombie" accounts paying paltry rates when an initial bonus period comes to an end.

The deals available from Ford Money include a flexible cash Isa with a variable rate of 0.8%, a one-year fixed cash Isa with a rate of 0.95% and a two-year fixed cash Isa which pays 1.1% annually.

The savings products also include a flexible savings account paying a rate of 0.85%.

Figures from financial information website Moneyfacts.co.uk suggest the rates on offer from Ford Money sit higher than the average deals on the market generally.

According to Moneyfacts, the average one-year fixed rate Isa currently on offer pays 0.92%, although rates as high as 1.13% are available.

Moneyfacts' figures show the average two-year fixed rate Isa pays 0.91%. A two-year fix at 1.25% is available from Yorkshire Building Society.

Ford Money is part of Ford Credit Europe. In 1997, Ford Credit obtained a UK banking licence and became known as FCE Bank.

Customers' deposits with Ford Money are protected by the Financial Services Compensation Scheme (FSCS), the UK's savings safety net, in the same way as they are with high street banks and building societies.

Julian Hynd, chief deposits officer at Ford Credit Europe, told the Press Association that consumers are fed up with savings rates that change dramatically when they turn their back.

He said: "Our philosophy is that our competitive rates are fair and consistent over time."

Mr Hynd continued: "We have a large target population from day one. It's really about wanting to be in control and have peace of mind."

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