A new name is emerging within the French banking sector: Distingo Bank, under the aegis of Banque Stellantis France. Formerly known as PSA Banque France, this financial institution is not a traditional bank and does not have a checking account offering. Focusing instead on savings, Distingo Bank offers a savings account, a non-regulated financial product of interest to those seeking an innovative alternative for growing their capital.
Milesopedia guides you through the ins and outs of this savings option, to help you make informed financial decisions for the future.
Distingo Savings Account
Created in 2013, the Distingo saving account, which is not regulated by the government in terms of interest rates, offers a flexible investment opportunity, with a generous ceiling of 10 million euros. It is the ideal complement to your savings portfolio.
Under the aegis of Distingo Bank, this savings product is available to both adults and minors. It has also just seen its fifth rate increase in a year. On September 1, 2023, the Stellantis Group subsidiary increased its interest rate to an attractive 2.8% gross, compared to 2.5% previously.
This development stems from the reorganization of financial services within the automotive giant Stellantis, which continues to reverberate in the financial sector. In addition to the name change from PSA Banque to Banque Stellantis France, this transformation is accompanied by the launch of a new green term deposit by Distingo Bank.
Benefits of the Distingo Savings Account
The Distingo savings account is known for its ease of signing up, and offers an accessible and secure way to save money. As this is not a checking account, it is important to note that not all services normally offered by a traditional bank are available when subscribing to the Distingo savings account.
That’s why it’s important to combine the opening of a savings account with a checking account, whether it’s with BNP Paribas, Société Générale or HSBC France, or with a neobank such as Helios, Monabanq or Fortuneo Banque.
|Available Services||Unavailable Services|
|Opening and closing an account||Issuing a SEPA credit transfer outside France|
|Account management fees||Issuing a bank cheque|
|Issuing a SEPA credit transfer in France||Cash deposits|
|Annual statement||International debit card|
|Joint account unbundling (except in the event of death)||International deferred debit card|
|RIB||Systematic authorization payment card|
|Receiving a transfer||Withdrawal in euros from any ATM in the euro zone|
|Cheque remittance||Insurance subscription|
Funds available at any time
Unlike some savings products, where funds are only available after retirement or when you buy your first home, the funds deposited in the Distingo savings account, and their interest, can be accessed at any time.
Free Savings Account
One of the greatest benefits of the Distingo savings account is that it is free. Opening an account is completely free, regardless of the amount invested.
2.80% Interest Rate
The interest rate on the Distingo savings account is not the most competitive on the market, but it’s still about average. By comparison, the Livret A, the Livret d’épargne institué au profit des travailleurs manuels and the Livret de développement durable et solidaire have nominal annual interest rates set at 3%. The interest rate on the home savings account, excluding the government bonus, is 2%.
Green Term Deposit
In 2023, Distingo Bank announced the GREEN term deposit. It helps finance the electric mobility of Stellantis vehicles and comes with a guaranteed annual return of 3% for a 10-month commitment. No subsequent payments are possible. At the end of the contract, the account is automatically closed and the capital and interest, after deduction of tax and social security contributions, are transferred to the corresponding savings account.
Opening a Distingo Savings Account
- Valid identification
- Proof of address
- Bank statement
You will receive an agreement confirming that your file is being considered once the application has been signed. To complete your application, you will be asked to make a bank transfer from a French checking account within a maximum of five working days.
Distingo Savings Account Review
There are a number of advantages and disadvantages to the Distingo savings account.
On the plus side, it offers an attractive interest rate, making it a popular choice for those looking to increase their savings. What’s more, the opening process is simple and accessible online, making it convenient for many savers. Distingo Bank regularly adjusts its interest rates on savings accounts to keep pace with market trends, offering a competitive remuneration.
However, some customers have experienced difficulties reaching customer service, with long waiting times and a lack of commitment and competence on the part of advisors. Furthermore, processing times for applications and banking transactions can be long. Where more and more banks offer free access to instant transfers, Distingo Bank can take several days to process a bank transfer.
Conclusions and Recommendations
The Distingo savings account is an attractive option if you’re looking for a way to optimise the interest on your savings. With its simplified account opening procedure, competitive interest rate and the possibility of subscribing to a green term deposit, it offers many benefits. Plus, it’s completely free of charge to open an account with us, making it a no-risk option. Just bear in mind that a French checking account is required to open a Distingo savings account.
Frequently Asked Questions about the Distingo Savings Account
Which Savings Account Has the Best Interest Rate?
The Livret d’Epargne Populaire (LEP) is currently the most profitable savings account on the market. With an interest rate of 6% net of tax since August 1, 2023, it far outstrips the Livret A and LDDS, offering the best return for savers – provided, of course, that they are eligible for this type of savings account.
Which Bank Is Behind the Distingo Savings Account?
Distingo Bank is a brand of Banque Stellantis France, formerly known as PSA Banque France. The capital is equally owned by Stellantis Financial Services and Santander Consumer Finance.
What Is the Interest Rate on the Distingo Savings Account?
Since September 1, 2023, the rate on the Distingo savings account has been 2.80%. However, note that Distingo Bank reserves the right to change the rate at any time, either upwards or downwards.
How to Close a Distingo Savings Account?
To close a Distingo savings account, the account holder must notify Distingo Bank of his or her intention to do so by registered letter, return receipt requested. This letter must be accompanied by a bank statement (RIB) in IBAN BIC format from an external account in their name. It is important to note that if the account holder does not have any other accounts with Distingo Bank (as in the case of minors), they have ten clear days after the transfer to download or print the documents stored in their account. After this period, the holder will lose access.
Who Can Open a Distingo Savings Account?
To open a Distingo savings account, you must be resident in France and hold a checking account with a French credit institution. From the moment the savings account is opened, it is essential to maintain your status as a French tax resident throughout the term of the account.