Is a high-yield savings account offered by email from a bank I don't recognise legitimate?
Unsolicited emails advertising above-market savings rates from unfamiliar banks deserve verification before any deposit. Some are fraudulent clone firms.
Last reviewed: 1 June 2026
Explanation
Clone firm fraud involves criminals registering entities with names similar to real banks and advertising above-market interest rates to attract deposits. The firm may even create websites that reference real regulatory registrations to appear legitimate, while actually not being authorised. In the UK, the FCA maintains a financial services register — any firm collecting deposits must be listed there. In the US, the FDIC insures deposits at member banks. Before depositing with any unfamiliar savings provider, verify their exact registration on the regulator's official register and confirm the email domain matches the firm's verified contact details. Deposits at unregulated firms may not be covered by compensation schemes.
Common red flags
- Interest rate significantly higher than other market rates
- You cannot find the firm on the official financial regulator's register
- Contacted by unsolicited email rather than through a comparison site you initiated
- Firm name is similar to a well-known bank but slightly different
What to do now
- Search the firm's exact name on the official financial services register
- Verify the firm's registered address, phone number, and email domain match the register
- Do not deposit until verification is complete
- Report suspected clone firms to your national financial regulator
Frequently asked questions
What is a clone firm?
A clone firm uses a name and branding similar to a real authorised firm to deceive consumers. They are not the real firm and deposits are not covered by compensation schemes.