When I got my first internet enabled computer nearly three years ago, I decided to go mad and apply for many different credit cards on many different websites. Most refused me, but one that accepted was Intelligent Finance. I was, well to put it simply, chuffed to be accepted for my first credit card and decided to open a current and savings account at the same time.
The Bank
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Launched in 2000, Intelligent Finance is a web and phone based bank, so there are no high street branches. However, as a division of Halifax PLC they do have big name backing, which as I'm sure you realise, makes for piece of mind.
The Website
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The web site is clearly laid out in quite eye pleasing purple tones. There are links to all the products, with demonstrations of how much you could save if you switch accounts.
The Products
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Intelligent
Finance offers a number of financial products.
MORTGAGES :
There are four types of mortgage available.
1. Offset Mortgage - which gives you the chance to link your mortgage to your current account and savings, and “offset” the credit balance against your debit balance. This sounds complicated but means that instead of receiving interest on your savings, you will not pay interest on the equivalent amount of your mortgage.
2. Fixed Rate Mortgage - A mortgage with a fixed rate of interest for two years.
3. 80% Tracker Mortgage - A mortgage that will be no more than the Bank Of England's interest rate for two years.
4. 95% Tracker Mortgage - A mortgage that is set at 0.44% above the Bank Of England's interest rate for two years.
SAVINGS AND INVESTMENTS
The are two types of saving and investment accounts available.
1. Direct Access Savings - A flexible savings account where you can start saving from as little a one pound and still enjoy a great rate of interest.
2. Mini Cash ISA - As part of the governments plan to get us saving you can invest upto £3000 in any tax year and receive interest tax-free.
CURRENT ACCOUNT
A standard current account, that features £100 check guarantee/maestro card, check book, overdraft and the ability to withdraw upto £300 a day. If you have just a pound in your savings account you will receive the same rate of interest on your current account balance.
PERSONAL LOANS
Intelligent Finance currently offers two personal loans.
1. Typical APR 6.1% - This offers the chance to offset the loan, and also pay it off early.
2. Typical APR 6.9% - This loan offers a courier service so if accepted you could receive your cheque within 24 hours.
Both of these rates are for loans over £7000
INSURANCE
Three types of insurance are offered.
1. Accident, unemployment and sickness - To protect your mortgage payments in case if you are unable to work.
2. Life Assurance - Cover to ensure your loved ones and home are protected if you die.
3. Buildings and Contents Cover - Covers your building and contents in case of fire, theft, flooding etc.
CREDIT CARD
Although I have a credit card from Intelligent Finance, I can't currently see an option allowing you to apply for it.
How To Apply
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There are two ways to apply for an Intelligent Finance account, one is on-line at www.if.com, and the other is over the telephone on 0845 6094343. I applied for my account on-line, which was a simple if somewhat lengthy procedure. In either case you will need bank and work details in order for the application to continue.
You will then be sent a welcome pack, that contains any credit agreements you need to sign, as soon as these are returned you account(s) will become active.
Using The Account
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I do all my banking with Intelligent Finance on-line. At the time of application, I chose a user name, password, and had to enter some personal details. It is these that are used to log in to the web site. Once logged in, you are able to transfer money between pots, such as current account and credit card, keep an eye on your balances and even request an increase in your credit limit (this can be done once every six months).
Alternatively, you can do many of the same things via the telephone. For this purpose you will have been given a plan number and pin code.
Interest Rates
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At the time of writing the following interest rates apply :
MORTGAGES :
Offset : 6.1% APR
(Arrangement fee £199)
Fixed Rate : 6.0% APR
(Arrangement fee £499)
80% Tracker : 6.0% APR
(Arrangement fee £349)
95% Tracker : 6.1%
(Arrangement fee £399)
CURRENT ACCOUNT
On credit Balance (without savings) : 2.75% AER
On credit Balance (with savings) : 4.75% AER
Authorised Overdraft : 9.8% AER
Unauthorised Overdraft : 25% AER
SAVINGS ACCOUNT
Direct Access : 4.75% AER
Mini ISA : 5.1% AER
PERSONAL LOANS
£1000-£2999 : 15.9% (typical)
£3000-£4999 : 14.9% “
£5000-£6999 : 9.9% “
£7000-£25000 : 6.1% “
CREDIT CARD
Purchases : 12.9%
Cash Advance : 14.6%
Balance Transfer 12.9%
Up to date information on interest rates and charges can be found at :
http://www.if.com/info/rates.asp
The Downside
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As this is an internet/telephone only account, if there is a problem with your account there is no branch to go into to get it sorted face to face, not that I've had any problems.
You also need an external account to make transfers into and out of the account, as there are no counters that will accept deposits.
And for every down there is an up
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There are two ways of off-setting your interest :
For those that pay tax, you can choose not to receive interest on your savings and in return, you don't pay any interest on the same amount of any debt.
And for those that don't pay tax on their savings, you can receive the same amount of interest on your savings as you would pay on your debt. Pretty cool, if ask me.
So my opinion
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I'll never regret the day I applied for my IF account. Not only was it the only credit card that accepted me, I now have a debit card, overdraft facility, in fact everything I could ever want from an account. And as I've used the account, my credit rating has gone up, and now every card company wants me. But I'm sticking with IF, the interest rates on the card are reasonable, and the rates on balances is extremely high.
by (6%):
by (14%):
06.01.2005 20:05
Couldn't ask for more information really!
05.01.2005 17:15
Brill review. Sounds good, but the only problem i'd have with internet banking is, as you mentioned, you cant speak to someone face to face if you have a problem. Jo x
03.01.2005 08:53
A very informative review. Many thanks. Mandy.xx