Experience with Zeux 5% flexible access account?

I am looking for other alternatives to fixed rate money pot products and was suggested to check out Zeux. Looks like these guys are offering a promotional 5% fixed rate in flexible access account.

Sounds interesting, but wanted to find out what’s the catch (besides not having FSCS protection). Has anyone had any experience with it?

Cheers,
Paul

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It’s a crypto product and it’s not clear (to me anyway) if there is any safeguarding to ensure the crypto remains yours if Zeux goes bust (i.e. stays out of reach of other creditors).

Am not sure if it is regulated in any way.

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Thanks for sharing this! Have you had any experience investing with Zeux?

Most of their online coverage is in fact for crypto payments, but it looks like the 5% flexible access account is for fiat GBP deposits.

I wounder if there is a GBP deposit lock up period to earn 5% or if one will lose earned interest if withdraw early?

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I don’t have any experience investing with them. I was considering it and emailed my concern to Zeux a few weeks ago together with a couple of other questions but never got a response from them. That put me off.

I don’t think it is for Fiat. I think it is for BGBP, a stablecoin pegged to the value of GBP. Perhaps it could be considered pseudo-Fiat.

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Thanks. Does this mean I need to deposit BGBP to access 5% return? That would be a little awkward, as I don’t even know where to get this stablecoin.

I’m not sure, but I assume you transfer GBP to them and then convert it to BGBP in their app/platform.

As I understand it any GBP you hold with them is held under an FCA regulated e-money license, and therefore should benefit from emoney safeguarding requirements. But I don’t think they have any interest-bearing GBP products.

My concern is whether there is any safeguarding of funds held with them once the funds are converted to crypto and what recourse I would have if they fail to live up to any assurances they may claim on their crypto products.

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Thanks. I will email their support today to ask the same question, it’s definitely worth clarifying. P

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Yes you transfer your pound sterling into your account on the app you then move this in app into the 5% savings account which is Stablecoin.

I’ve only put in £50 so far and after 24hrs the interest has started.

I’ve not tried withdrawing yet but I’ve spoken with a few who have and it’s been a quick process which brings through accumulated interest with it.

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Just received below from support@zeux.com

Dear Paul,

Thank you for email and your interest in Zeux.

We can confirm that our 5% Easy Access Money Account product is a fiat GBP investment product that you can fund using your Zeux GBP wallet balance.

Your Zeux GBP wallet balance is stored with Santander UK in a segregated money account, which you can top up via faster payments UK bank transfer.

Please note that the 5% Easy Access Money Account is not protected under FSCS, however your principal and fixed earned interest are guaranteed by product issuer (WeCash) as well as by Zeux cash balance, which is currently many multiples of total outstanding investment principal. We provide you flexible deposit access to global institutional investment accounts by using BGBP stablecoin that is used to reduce the transaction cost. Please note that your deposit and ultimate investment will remain in fiat GBP, with the BGBP only being used to transfer the funds to the institutional WeCash account.

We hope this is helpful and do let us know if we can be of any further assistance to you.

Kind Regards,

SOPHIE | ZEUX

SUPPORT

W: www.zeux.com

Join our community on telegram
Follow us on Twitter: @ZeuxApp
Read our articles: medium.com/zeux

Zeux Ltd. authorized and regulated by the Financial Conduct Authority.

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The only sentence worth reading

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That’s not really new information, what is interesting is that its a 5% fiat GBP flexible account and not crypto investment. My biggest concern is that I would somehow be exposed to crypto price movement for my GBP deposit, which is not the case.

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Thanks for getting the info. I’m still quite uncertain.

Their FAQ states: Client fiat funds are stored in a segregated account held with an FCA authorised and regulated Electronic Money Institution

But their email seems to be stating that client GBP funds are initially in the UK (presumably an emoney institution that uses Santander) and then at WeCash (as I read it anyway). However WeCash isn’t an FCA authorised and regulated Electronic Money Institution. What concerns me is what, if any, recourse we have if things go wrong when are funds are in transit or at WeCash.

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I really would not use this service. I was curious and so put in GBP 500 just to see what the experience was like. The whole thing screams fraud to me. The loan pool is what is known as ‘over collateralised’; however that should give no comfort. That could mean simply instead of putting up 5% collateral the company out up 6%. Now both the WeCash holding company and Zeux guarantee the cash but if you break out the legal agreement and read it this does not extend to any actual rights. When I used it my account balance went down (even though when asked it should not have). I then tried to withdraw my money, the transaction went through but the money did not appear for a week. When I emailed and asked they said it had been there all along (i.e. the transfer was instant as promised) but the system did not update. I would avoid.

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None… I have looked into the legal agreement (see below). If WeCash loses money, stops trading etc. you have no recourse to any of the money. The only safe time is when you transfer the money in initially - if Zeux collapsed then your money would be stored in the Santander account and you would have it returned. Once invested however, there are no protections.

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It’s nothing new now.
Both binance and crypto.com (the latter in use) pay upto 8% interest on USDT (Tether USD stable token) but I do actually have crypto and enjoy 6% interest earning on my crypto holding. Ironically I don’t care about USDT or GBP equivalent - I do want to earn interest paid back in native currency. I’m here for the long haul - HODLer.

You can check it out more there - [Referral link removed] (Ps you get $50 USD on sign-up ) yada yada referral convenience but it’s all the same relevant topical response.
Enjoy responsibly

Apologies for modifying your post, JP! We’ll have dedicated threads for referral links.

Thanks for sharing this.
I spoke with their support and they also guarantee my principal invested with Zeux Ltd cash balance. So in case Wecash has a credit event, I believe one can still get back entire principal and interest from Zeux directly.
I have transferred some of my savings from Marcus into Zeux to try it out. All seems to be in order so far,including instant withdrawals. Will keep you updated!

They can guarantee it sure but in the event that WeCash has a credit event there is almost no way they would be able to pay you back your funds. Zeus would need to have the cash on hand (bearing in mind instant withdrawals) to pay back everything. The loans are collateralised but nowhere near enough to cover everything. I would be extremely cautious about treating this as anything other than a highly leveraged speculative investment product.

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Fair point. I think their argument is that Zeux current cash capital is more than enough to cover all invested principal, which I can believe as they are still growing.
So in event of Wecash credit event, which is unlikely to go to zero, Zeux will be taking a loss on their capital not mine.

they’re selling to you :smiley: they guarantee it now until they are all bankrupt & customer service stops responding. You should pass on their statements to FCA and see what their response is

and to think people say putting money in Revolut is risky

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