Raisin a question

[Simpo Two]

Someone just posted a link to Raisin's 5% for a year offer, and the small print says:

'Meteor Asset Management (MAM), with their administration arm Meteor Investment Management (MIM), will administer the deposit on your behalf.'

So is the idea that these guys invest your money somewhere and try to make more than 5%? What happens if they don't?

Somehow the Turkish private bank 'İşbank' is mixed up in it too.

[deckster]

So far as I can see, Raison and Meteor are UK-based intermediaries that open accounts for you and handle transferring money around. In this case they open a fixed-term account with Isbank and receive the interest on your behalf. It doesn't on the face of it seem at all dodgy. It's a guaranteed 5% and in that sense seems quite an attractive and largely risk-free place to park you money for a year.

BTW you may have misinterpreted what Isbank being a "private bank" means. They are a huge retail bank in Turkey and very definitely above board, so long as you are comfortable with your money being managed by something which is partly (mainly?) owned by the Turkish government.

[Simpo Two]

Thanks. So in rough terms maybe Isbank's rate is actually 10%; these guys get the 10% and hand half of it to you? Where does the gain come from - Isbank's commercial dealings?

[deckster]

At a guess, Isbank give these guys a commission for them passing your business onto them. The 5% fixed rate account will just be a standard product from Isbank like any other.

[av185]

Shawbrook 4.7% and Aldermore 4.35% look way more appealing all considered.

[RizzoTheRat]

Given that Turkiye's inflation rate is currently something like 50%, surely a 10% interest bank account there is losing money?

[DaveA8]

Locking your money up for 3 yrs for nominally 15% ( The example shows 1000 becomes 1150) is okay so long as one is sure they don't need or won't need it and that for me would be the real issue