Car manufacturer Renault’s finance arm is launching savings accounts in the UK for the first time, diversifying its funding base.
Motor companies often run finance businesses to fund customers’ purchases of their cars, as well as related insurance products.
But offering a wider range of services is not as common.
RCI Banque, as the unit is formally known, is offering an easy-access savings account paying an interest rate of 1.5 per cent.
It comes at a time when a range of foreign banks are entering the UK and new banks are being established, as regulators demand more competition in the market and customers are increasingly shopping around for alternatives to the dominant high street banks.
The product comes in near the top of the best buy tables for online accounts, with higher-paying accounts typically requiring depositors to meet other criteria such as loyalty conditions or access to a physical branch.
RCI is covered by the French government’s deposit guarantee scheme, rather than the UK’s Financial Services Compensation Scheme.