Bank On Dave - Are Deposits Protected ??

[Gizmonster]

Has anyone watched the recent "Bank On (Of) Dave" on Channel 4 recently?
I was thinking about depositing some cash in there, 5% seems like a very tempting offer.
I'm assuming the "bank" won't be covered by the usual FSCS limit of £85k, etc, but there was a mention of some insurance that they have - I'm assuming this will prorect your savings in the event of them going under. Does anyonwe know if this is the case and if so, how much of your savings are protected?

[Mattk]

Haven't seen it but isn't it a community bank i.e. only locals can use it? Having said that you be a local of course.

I believe there is also a waiting list of 1 year+.

[Gizmonster]

You are correct - I am a local.
I'm going to go and pay them a visit this week when I get time - I just thought I'd ask on here in case anyone knew.
I'm fairly sure non-local people can use it too, 'cos when he was out in his mobile bank ,he was taking deposits off people.

[Buenchico]

As I read it . . .

Burnley Savings And Loans Ltd [informally a.k.a. 'Bank on Dave'] isn't (legally) a bank. Instead, it's a broker bringing savers and borrowers together. So when you place money with the company you're actually lending it directly to a borrower, who promises to repay the loan with interest:
http://www.burnleysav...dloans.co.uk/savings/

Obviously there's a risk that the person (or firm) who has borrowed your money won't pay it back. The only guarantee offered appears to be a personal one from the guy who runs this company:
http://www.davidfishwick.com/aboutus.php

If he's got his sums right (and he's as financially sound as his company's website likes to portray him) you'll have no worries. But, without access to his bank statements, can you really be sure that he's got the personal wealth to honour all of those guarantees if the default rate on loans is actually a lot higher than his business plan has assumed?

Chris

[Gizmonster]

Thanks for the info.
I knew that it isn't legally a bank - that's why he called it "Bank On Dave" as oppose to "Bank of Dave".
From what I remember when I was watching it on channel 4, there were several plaques on the wall, all containing certificates of some kind. One enabled him to lend money out, another to act as a broker, etc ..... and I'm fairly sure that one of them was an insurance policy, in case things went arse up and he wasn't able to repay the depositors.
I'm going to go in one day this week and ask them myself ......

[boxtops]

Let us know - I think it's an interesting concept. He said he would only lend so much a week, and once he'd reached that limit, he stopped. Sounds sensible.

[Gizmonster]

I'm prob gonna go in when I finish work. I've got a few days off this coming week, so it'll either be Thurs or Fri when I get to go in .... watch this space ..

[sandyRoe]

I know little about money, and less about banks, but I wouldn't put more into the bank on Dave than I could afford to lose.

[Mick-Talbot]

Crap ... I wanted to watch this.