In April 2018 Castle Trust announced its intention to become a bank. Since then, we’ve been working closely with both UK regulators, the Prudential Regulation Authority and the Financial Conduct Authority, on our banking licence application. We are pleased to let you know that following the submission of application in early September 2019, the regulators granted us authorisation with restrictions on 20 March 2020 and we are expecting to become a fully authorised bank in Summer 2020. 

This is a natural next step in our journey that started with our customers investing with us when we were founded in 2012. Since then, with our customers' help, we’ve steadily grown and now 22,000 customers trust us to look after their money. Becoming a bank is an exciting milestone but it won’t change our focus on doing what’s right for our customers. In fact, it means we’ll be able to offer a broader range of products in the future.

Questions and Answers

We have put together a question and answer section to help answer some questions our customers may have on our banking licence application:

Why is Castle Trust becoming a bank?

Castle Trust was founded in 2012 to provide innovative products to both savers and borrowers and has steadily grown over time. Our current status as an investment firm limits the range of products that we can offer and it is a natural next step for us to become a bank as we look to broaden our product range and better meet our customers’ needs.

What products will Castle Trust offer in the future?

As well as continuing to offer fixed term products as we do today, becoming a bank will enable us to launch a competitive easy access account. We’re very excited about this and we’ll provide you with more information about our new products once we’re a bank.

What happens to my existing Fortress Bond when Castle Trust becomes a bank?

Existing Fortress Bonds will continue to pay the same interest rate and run for the same term. We are consulting with customers on the opportunity to have Fortress Bonds reclassified as bank deposits, still paying the same interest rate and still maturing on the same date.

When my ISA is converted into a bank deposit, will it retain its ISA wrapper?

Investments held as ISAs will retain their ISA wrapper and associated tax benefits when converted.

Will I receive FSCS protection on my bank deposit just like with other banks?


What is the difference between a bank deposit and a Fortress Bond?

In short, a bank deposit is money held in an account, such as a savings account, offered by a bank. A Fortress Bond is an investment (fixed rate bond) that pays interest to investors in a lump sum, either quarterly or at maturity, and returns the original amount invested at the end of the term. If you’re interested in the technical side, you can find out more information on our website about how Castle Trust issues Fortress Bonds.

What will happen to rates when Castle Trust becomes a bank?

Existing Fortress Bonds will continue to pay the same rates of interest. As we launch new products, we’ll continue to review the market to ensure that the rates on our products remain competitive.

Can I continue to invest with Castle Trust?

We are progressing through our banking licence application and at the present time, we are only able to offer investment options to existing customers with maturing Fortress Bonds. If you are an existing customer, you are able to reinvest any maturity funds with us by phone, post, or using the Self Service Portal if you have registered for an online account.

I have a Fortress Bond coming up to maturity – can I reinvest it?

Yes, we’ll contact you before maturity in the normal way so you can provide us with instructions on whether you want to reinvest, part-invest or withdraw your funds.

How is Castle Trust performing at the moment?

We’re pleased with the performance of the business to date, which is why we believe this is a good time for us to make this journey towards becoming a bank. You can find information about our latest financial performance on our website. In the financial year to September 2019, we made a profit before tax of £1.6m.

Sign up for updates

We will be contacting our customers as our banking licence application progresses. If you are interested in keeping up to date with our journey and our latest products and services, we can email you with more information as we progress towards becoming a bank.

Your property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Your home may be repossessed if you do not keep up repayments on your mortgage. Loans are subject to status, terms and conditions. This website is for information purposes only. If you are in any doubt regarding suitability of our products please seek advice from an accredited independent mortgage adviser.

You risk losing capital should Castle Trust become insolvent.

Castle Trust is the trading name of both Castle Trust Capital plc (company number 07454474) and Castle Trust Capital Management Limited (company number 07504954) both registered in England and Wales with registered offices at 10 Norwich Street, London, EC4A 1BD. Castle Trust Capital plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, under reference number 541910. Castle Trust Capital Management Limited is authorised and regulated by the Financial Conduct Authority, under reference number 541893.

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