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You can find the current article at its original source at http://www.guardian.co.uk/money/2013/jan/08/blow-savers-governor-money
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| Version 2 | Version 3 |
|---|---|
| Governor Money stops accepting new savings | Governor Money stops accepting new savings |
| (about 21 hours later) | |
| A website that helped savers find the best interest rates for their cash has stopped accepting new deposits, blaming the government's Funding for Lending scheme as a factor in its inability to source good accounts. | A website that helped savers find the best interest rates for their cash has stopped accepting new deposits, blaming the government's Funding for Lending scheme as a factor in its inability to source good accounts. |
| Governor Money launched in 2011 and offered savers a one-stop shop for their money. Through a single account held with the provider, savers could access the best rates available from a range of banks and building societies, including some deals not available direct. | Governor Money launched in 2011 and offered savers a one-stop shop for their money. Through a single account held with the provider, savers could access the best rates available from a range of banks and building societies, including some deals not available direct. |
| It boasted: "From a single application and account, customers can buy and manage savings products from a range of providers – getting all the benefits of choice but without the boring paperwork and extra administration." | It boasted: "From a single application and account, customers can buy and manage savings products from a range of providers – getting all the benefits of choice but without the boring paperwork and extra administration." |
| In January 2012, it topped the best-buy tables for cash Isas, and frequently offered some of the best-paying accounts on the market. | In January 2012, it topped the best-buy tables for cash Isas, and frequently offered some of the best-paying accounts on the market. |
| However, in recent months savings providers' reluctance to attract new money made it difficult for Governor Money to negotiate good deals. | However, in recent months savings providers' reluctance to attract new money made it difficult for Governor Money to negotiate good deals. |
| In a statement it said of the lack of deals: "In the long term this ultimately undermines the Governor Money proposition". It said it had decided to close to new customers and new deposits by existing customers "for the foreseeable future". | In a statement it said of the lack of deals: "In the long term this ultimately undermines the Governor Money proposition". It said it had decided to close to new customers and new deposits by existing customers "for the foreseeable future". |
| The website, which is owned by Family Investments, would not disclose how many people had opened accounts, but assured savers ttheir money was safe, because it is held with the underlying banks and building societies. | The website, which is owned by Family Investments, would not disclose how many people had opened accounts, but assured savers ttheir money was safe, because it is held with the underlying banks and building societies. |
| Miles Bingham, chief executive of Governor Money said: "The Governor Money proposition was truly innovative and unique, so it is disappointing that we are having to take this measure. | Miles Bingham, chief executive of Governor Money said: "The Governor Money proposition was truly innovative and unique, so it is disappointing that we are having to take this measure. |
| "However, given the current savings environment and the reluctance of banks and building societies to offer appealing rates to savers, this has made Governor's continuation unviable." | "However, given the current savings environment and the reluctance of banks and building societies to offer appealing rates to savers, this has made Governor's continuation unviable." |
| Bingham added: "I would like to reiterate that our customers' money is completely safe and that no action is required from them. | Bingham added: "I would like to reiterate that our customers' money is completely safe and that no action is required from them. |
| "They will still enjoy the high rates of interest associated with each purchase, continue to benefit from the FSCS protection of our supporting deposit takers and withdraw funds to their nominated bank account in the normal way upon maturity." | "They will still enjoy the high rates of interest associated with each purchase, continue to benefit from the FSCS protection of our supporting deposit takers and withdraw funds to their nominated bank account in the normal way upon maturity." |
| The Funding for Lending scheme launched in August 2012 to offer cut-price loans to banks and building societies, with the intention of encouraging them to offer mortgages and business loans. | The Funding for Lending scheme launched in August 2012 to offer cut-price loans to banks and building societies, with the intention of encouraging them to offer mortgages and business loans. |
| However, the scheme seems to have had a knock-on effect on savings rates, with lenders less anxious to bring in new deposits. Recent months have seen a race to the bottom of the best-buy tables, and savers are now desperate to find a good home for their cash. | However, the scheme seems to have had a knock-on effect on savings rates, with lenders less anxious to bring in new deposits. Recent months have seen a race to the bottom of the best-buy tables, and savers are now desperate to find a good home for their cash. |
| Sue Hannums of the website Savings Champion said the savings landscape was "dire" and that many of the better-paying accounts had strings attached. "You have to jump through hoops to get the best rates at the moment," she said. | Sue Hannums of the website Savings Champion said the savings landscape was "dire" and that many of the better-paying accounts had strings attached. "You have to jump through hoops to get the best rates at the moment," she said. |
| "Regular savings accounts are where you are going to get the best rate. We're still advising that people should be making the most of their Isa allowances, but there are only four of those now beating the rate of inflation." | "Regular savings accounts are where you are going to get the best rate. We're still advising that people should be making the most of their Isa allowances, but there are only four of those now beating the rate of inflation." |
| Top savings accounts | Top savings accounts |
| Coventry BS | |
| Skipton BS | |
| Manchester BS | |
| Powered by MoneySupermarket for the Guardian | Powered by MoneySupermarket for the Guardian |