Ford Money: savings and Cash ISAs that don't punish loyalty

The motoring giant has added a regular saver and a regular saver Cash ISA to its range of savings products, and they both pay out 4%. How do they compare to the competition?

Who is Ford Money?

Ford Money has launched a new regular saver ISA and regular saver account to its range, both paying 4%.

Savers can stash between £25 and £250 every month, but the accounts are only available for a limited time, so get in quickly if you want one.

The motoring behemoth promises savings accounts and ISAs that are easy to open, simple to manage and highly secure, with rates that are ‘fair and consistent’.

The biggest pull is the Best Rate Guarantee. Under the pledge you’ll always receive the same rate on variable products as new customers on like-for-like products. As for fixed-rate, you’ll always get the best rate, even after you’ve applied for an account.

Deposits are secured by the Financial Services Compensation Scheme (FSCS) so that, in the unlikely event that Ford Money goes under, your first £85,000 investment will be safe.

We take a look at the new regular savings accounts as well as the other savings accounts and Cash ISAs that are on offer.

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Regular saver ISA and regular saver account

With the Regular Saver Cash ISA you can save between £25 and £250 a month for 12 months, up to £3,000 in total. That means you could earn £55.62 on the maximum balance of £3,000. And unlike other accounts, you won't be penalised if you don't make a deposit each month.

It beats its nearest rival from the Nottingham Building Society by quite some way. The Starter ISA Issue 7 has an interest rate of 2.25% on deposits from £10. It's a bit trickier to get going as you have to set up an account in-branch. 

The Regular Saver account is practically the same, except that your money is locked away for the term.

It might not be worth the switch though. Existing customers of the following banks can get a 5% return on regular savings accounts:

• Santander will give its 123 World andSelect customers 5% on maximum monthly deposits of £200 for 12 months;
• Those on Nationwide's Flexclusive Regular saver will also get 5% on monthly deposits up to £500 on one of its main current accounts for 12 months;
• First Direct 1st Account holders will get 5% on monthly deposits between £25 an £300 each month for 12 months;
• HSBC will givets Preier and Advance customers 5% on deposits from £25 to £300 each month for 12 months;
• Finally, M&S Bank offers existingcustomers and those who switch using the Current Account Switching Service 5% on deposits from £25-£300 for 12 months.

Here's how the Regular Saver compares to other regular savings accounts for new customers.

Easy access savings accounts

If you want to put money away but would like the freedom to access it at any time, then an easy access savings account is for you.

How does Ford Money compare to the competition?

The car firm is sitting comfortably in the best buys but is thrashed by car-making rival RCI (launched by Renault) which takes the top spot with its Freedom Savings Account.

Two-year fixed-rate ISA

Ford’s two-year ISA offering is fairly decent too. Here’s how the top deals compare.

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What about the other products?

You've got a handful of other savings products from Ford Money, but they're easily beaten by the financial firm's best-performing rivals.

Its Fixed Saver One-Year account offers 1.40%, which is well below Al Rayan Bank's 1.61% expected profit rate.

The Fixed Saver Two-Year account is 1.60% but it pales in comparison to Al Rayan Bank which has a way better rate of 2.02%.

The Flexible Cash ISA is 0.90% which falls down in comparison to Hinckley & Rugby Building Society which offers a whopping 1.20%.

And the Fixed Cash ISA One-1 Year is 1.05%, falls behind the top dog, Al Rayan Bank, which has a 1.15% expected profit rate. 

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Fine print for fixed-rate

No banks are without their small print, so here's what you can expect from the Ford fixed-rate accounts.

Customers must deposit a minimum of £500 and have 14 days to withdraw it or make further deposits, otherwise it’s locked in for the agreed period.

When the bond matures, you'll need to shift your funds or your money will be automatically locked into a product of a similar length and rate once more. 

In summary, even though a couple of its products make it into the best buy tables, Ford Money’s financial products aren’t worth writing home about just yet.

That said, we hope the practice of offering loyal savers the same rate as new ones catches on with other providers, and Ford should be commended for doing so.

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