Our Guarantee Scheme | RCI Bank (2024)

FAQs

Our Guarantee Scheme | RCI Bank? ›

It is the scheme which gives you automatic protection up to £85,000 if your bank, building society or credit union fails; and you'll normally get your money back within seven days. The FSCS is funded by the financial services industry, and is free to consumers.

Up to €100,000 per person per institution.

Deposit guarantee schemes (DGS) reimburse up to a certain amount to compensate depositors whose bank has failed.

RCI Bank is a trading name of RCI Bank UK Limited, which is authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA).

If you hold money with a UK-authorised bank, building society or credit union that fails, we'll automatically compensate you. up to £85,000 per eligible person, per bank, building society or credit union. up to £170,000 for joint accounts.

The Bank holds your cash or assets as security for the guarantee. You provide your supplier with the guarantee instead of cash. If you can not make payment, the bank will meet your commitment. You will need to repay any funds the bank has paid on your behalf.

Applying for a Bank Guarantee

Bank guarantees are not limited to business customers; individuals can apply for them as well. However, businesses do receive the vast majority of guarantees. In most cases, bank guarantees are not particularly difficult to obtain.

A security deposit is a cash bond whereas a bank guarantee is an undertaking from a bank or credit union to guarantee payment of the amount to the Landlord in case of Tenant default. Bank guarantees have been growing in popularity as it can be argued that they are safer for both Landlords and Tenants.

A bank guarantee account and a fixed deposit are two different financial products offered by banks. A bank guarantee account is a form of financial security issued by a bank to guarantee the payment or performance of a contract. A fixed deposit is a savings account that earns a fixed interest rate over a set period.

If the purchase fails to go ahead

In such cases, the deposit amount will be paid to the seller (via the notary). In the case of a bank guarantee, the lender will advance this amount. The bank guarantee is then converted into a loan, which you must repay to the lender.

Is my money safe with RCI Bank? ›

Eligible deposits in RCI Bank are protected by the Financial Services Compensation Scheme ('FSCS') up to £85,000 per depositor. Am I eligible? Our accounts are open to UK residents aged 18 and over who have the right to reside indefinitely within the UK.

Make a transfer on a business day and the money should be available in your linked account by the end of the following business day. If you really need your money the same day please call us to request a CHAPS payment.

You can use just 1 Deposit Trading Power per night plus cash to receive savings on hotels around the world. Learn more here. Deposit in a way that is most convenient for you! Either log-in to your account on rci.com and deposit through the “Manage My Deposits” space on your dashboard or give us a call at 800.338.

Keeping all of your money in one bank can be convenient. But it's important to consider whether you're getting the best rates on savings and paying the lowest fees for checking accounts. It's possible that you could get a better deal by keeping some of your money at a different bank.

Millionaires can insure their money by depositing funds in FDIC-insured accounts, NCUA-insured accounts, through IntraFi Network Deposits, or through cash management accounts. They may also allocate some of their cash to low-risk investments, such as Treasury securities or government bonds.

Bank Guarantee Charges

Generally, BG charges are based on the risk assumed by the bank in each transaction. For example, a financial BG is considered to assume more risk than a performance BG. Hence, the fee for financial BG will be higher than the fee charged for performance BG.

Bank Guarantee is provided against the collateral or 100% of the Fixed Deposit that is available.

The buyer applies to the bank, which assesses the buyer's ability to fulfill the contract and, if approved, charges a fee for the guarantee. If the buyer fails to pay for the purchase or complete the terms of the contract, the bank will make a financial payment to the seller.