UK based execution-only stock broker Selftrade (a trading name of Talos Securities Limited), today makes its first step into the retail banking sector by announcing the product details of its Cash ISA.
The Cash ISA launch on 5 December rides on the back of Selftrade, the UK subsidiary of Boursorama, having been granted deposit taking permissions by the Financial Services Authority (FSA) in October this year. Selftrade is following the successful broker-bank model applied in France by its parent company Boursorama, a key European player for online financial information, online brokerage and online banking and part of the Société Générale Group. Selftrade's new 'broker-bank' status marks an extension of the company's execution-only share dealing proposition, which remains at the heart of the Selftrade business.
With its new proposition and status, Selftrade will be looking to grow its existing customer base (Selftrade currently holds more than 220,000 customer accounts, making it the fifth largest execution only broker in the UK) and will be looking to add more banking and savings products and services (subject to further FSA approvals) in the future.
The Selftrade Cash ISA will complement Selftrade's existing range of share dealing and investment products and services. For investors, Selftrade's Cash ISA will be included on a single view platform, allowing account holders to access their savings and investment products easily from one log in. The timeframe for transferring money from the Selftrade Cash ISA to the Selftrade Shares ISA will be two to three days, making this one of the more flexible options on the market.
The key product details of the Selftrade Cash ISA issue 1* are:
• Interest rate of 0.9% variable plus a first year bonus of 1.1%, available on accounts opened before 5 April 2012. AER is 2.01%
• Enhanced AER of 3.26% based on an initial deposit of £5,001
• Up to five free trades (worth up to £62.50) available on accounts opened before 5 April 2012
• Easy to move money from the Selftrade Cash ISA to a Selftrade Shares ISA
• Track assets and investments - account holder can view savings and investments in one portfolio online
Mark Peearson, Chief Marketing Officer at Selftrade, comments:
"Becoming a 'broker-bank' is a natural extension of our business and being able to offer our first retail banking product is just the first step in our long-term strategy. At the same time, we will retain and improve our online share dealing platform and investment products, allowing customers to service and monitor their savings and investments under one roof. The addition of our Cash ISA will offer a compelling proposition for investors looking for ease and convenience when it comes to managing both their savings and investments."