Wyelands Bank to close all savings accounts and return cash to 4,000 savers
Wyelands Bank is to close its full range of fixed term, notice and easy-access savings accounts by 24 March and return money to 4,000 savers, after action from the financial services regulator. Cash deposits will be protected in full with any interest earned also being honoured. Here's what you need to know.
The move was forced upon Wyelands by the Prudential Regulation Authority (PRA), which is part of the Bank of England. It is understood this is due to concerns over the bank's business model and a desire to ensure it meets the PRA's financial resilience rules. Wyelands continues to be regulated by both the PRA and the Financial Conduct Authority (FCA).
Wyelands began notifying customers of the shake-up this week. See our Top Savings Account guide for info on where to put your money if you're now looking for a new home for your cash. The bank adds that its other banking activity will continue as normal, though most of these products are business-focused, rather than for consumers.
Easy-access customers can withdraw cash now but fixed-term customers will have to wait
When you'll get your savings back depends on the type of account you have:
- Easy-access account holders: Can make penalty-free withdrawals at any point - though any remaining money will be returned to you automatically by 24 March.
- Notice account holders: Must give the required notice before you can withdraw cash. If the end date of your account (the point at which the account reaches 'contractual maturity') is before 24 March, you'll get immediate access to your cash from this date - but no sooner. If your account reaches maturity on or after 24 March, you'll receive all your money back by 24 March.
- Fixed-term account holders: Can't take savings out early due to the terms they signed up to. If the end date of your account (the point at which the account reaches 'contractual maturity') is before 24 March, you'll get access to your cash from this date - but no sooner. If your account reaches maturity on or after 24 March, you'll receive your money back by 24 March.
Generally, any savings will be returned to the nominated account set-up when you opened your account with Wyelands. If your nominated account has since changed, you can update it by logging into your account online or there is a helpline number you can call, which is listed in the letter you will have been sent.
Some customers came to Wyelands through the Flagstone and Raisin platforms. For them, money will be placed into the depositor’s account with the provider.
None of Wyelands accounts are ISAs so you don't need to worry about cash losing its tax-free status once withdrawn.
Interest will be paid based on holding the account for the full term
Savers with notice accounts will receive interest to cover their notice period, which is typically 35 or 95 days, while savers with fixed term accounts will receive interest for the remainder of their term based on the balance in the account at closure.
This interest will automatically be paid into your nominated account alongside your savings when the account is closed.
Deposits up to £85,000 are protected until accounts close
Wyelands Bank says it has sufficient funds to return savers' cash in full, plus any interest earned.
But if worst came to worst, cash up to £85,000 per person saved with Wyelands is protected by the independent Financial Services Compensation Scheme (FSCS) and it would repay you if Wyelands was unable to do so.
What does Wyelands Bank say?
A Wyelands Bank spokesperson said: "The Bank has been working closely with its regulators regarding this repayment to depositors and has sufficient financial resources to meet all of its obligations and repay depositors. As all communications between the Bank and its regulator are confidential for both parties, we cannot comment further."