Lloyds to Coventry First - the slow route

mary · 21 August 2006 at 11:40PM

Transferred £46K from Ing to my Lloyds current account, stored it in the Online saver over the weekend, went into Lloyds branch to transfer the said amount to Coventry over the counter today. There is a daily limit online with Lloyds of £10K, so when I asked Coventry, they advised me to go into the Lloyds Branch and do it over the counter, providing only sort code and account no. No such luck. According to Lloyds they would only accept it accompanied by a preprinted paying in slip for Coventry. These do not exist for that account. I asked the Lloyds Bank Manager to contact Coventry while I waited and in short there was no way round it. I was offered a CHAPS payment for £40 and declined. So I came home, rang Coventry myself and the best solution was to write myself a cheque, send it recorded delivery, which is what I did.

The girl at Coventry said she herself had paid in large amounts personally to Coventry via her own HSBC, but I gather the sort code for Coventry is the one used by HSBC, so maybe, that might explain that one.

But as far as I am concerned, there was no way of transferring a large amount on line or in branch to Coventry, without paying a hefty charge!

codetown · 22 August 2006 at 3:03AM

The limitation is with Lloyds, not Coventry.

I have transferred a large amount from Nationwide to Coventry all online and with normal BACS. The only snag with Nationwide is that they have a limit of 10k per online transactions, so you have to divide you sum into different chunks (that can though be sent all one after the other with no problems).

Dagobert · 22 August 2006 at 9:45AM

I can't believe you of all did this, mary!

Right after moving money to ING for the 6% period, I started a thread to log Transaction limits, which I thought would be a useful resource for people who want to shift big sums as quickly as possible.

Of the many banks I have current accounts with only two allow you to move several K in a day. Some have an overall daily limit, some a per transaction limit. Not many banks allow you to make several transfers to the same destination on the same day.

For ING to Coventry, FirstDirect would have been the best choice as transfers only take 2 days and amounts are only limited by the funds available. Monday to FirstDirect, Wednesday to Coventry arriving on Friday.

Lloyds was also not a good choice as you cannot transfer out money on the day you arrange the transfer. At the earliest, transfers can be scheduled for the next working day, which , in this scenario, forced you to store the money at 4.25% over the weekend. When you moved the money from the Online Saver into the current account on Monday, then arranged the transfer on Monday, it would have left your account on Tuesday arriving only on Thursday.
For amounts up to £5000, however, Lloyds is a good choice because they pay interest for the 2 days the money spends in the BACS cycle. Your extra £41K would have only earned a nominal 0.1% interest for 3 days.

mary · 22 August 2006 at 10:10AM

Sorry, I totally forgot that thread.

Dagobert · 22 August 2006 at 10:47AM

mary wrote:

Sorry, I totally forgot that thread.

That's a shame. I suppose though the occasional mistake is unavoidable when you are juggling so many accounts.

The other thing that one should really be aware of is the number of days BACS Transfers from and to the various banks take.

Before moving biggish amounts I always do £1 test transfers. I have compiled information on transfer times between my many banks and was intending in updating this thread. It's a bit of a shame though that this kind of generic information disappears down the bottom after a short while.

mary · 22 August 2006 at 11:08AM

Dagobert wrote:

Lloyds was also not a good choice as you cannot transfer out money on the day you arrange the transfer. At the earliest, transfers can be scheduled for the next working day, which , in this scenario, forced you to store the money at 4.25% over the weekend. When you moved the money from the Online Saver into the current account on Monday, then arranged the transfer on Monday, it would have left your account on Tuesday arriving only on Thursday..

I've found that you can transfer money from online savings to your current account on a Sunday morning, it will register for Monday's date and then you could set up a transfer to actually go out on the Monday. But because I waited to go into the branch as it was going to be larger than the daily 10K limit online, I didn't do that.

Dagobert wrote:

For amounts up to £5000, however, Lloyds is a good choice because they pay interest for the 2 days the money spends in the BACS cycle. Your extra £41K would have only earned a nominal 0.1% interest for 3 days.

Why only for amounts up to £5000, not £10,000?

However, I was told yesterday by the lady at Coventry that by posting my cheque on Monday by Recorded Delivery, my cheque once received (hopefully Tuesday) will start earning interest from the Tuesday. So I think I will only have had the Monday (i.e. one day, not 3 days) at the low rate in the Lloyds current account.

mary · 22 August 2006 at 11:10AM

Dagobert wrote:

I have compiled information on transfer times between my many banks and was intending in updating this thread. It's a bit of a shame though that this kind of generic information disappears down the bottom after a short while.

I usually cut and paste into Word topics which I think relate to my situation rather than trawling through pages of threads.

Dagobert · 22 August 2006 at 11:37AM

mary wrote:

I've found that you can transfer money from online savings to your current account on a Sunday morning, it will register for Monday's date and then you could set up a transfer to actually go out on the Monday.

As far as I understand, you would have to set up the external transfer on Friday before cut-off time to leave your current account on Monday.

mary wrote:

Why only for amounts up to £5000, not £10,000?

Sorry, I was a bit short there. I was referring to the 4% in-credit interest on the first £5,000 in the current account. Lloyds pay an extra two days' interest during BACS transfers, which only benefits you up to this limit.

mary wrote:

However, I was told yesterday by the lady at Coventry that by posting my cheque on Monday by Recorded Delivery, my cheque once received (hopefully Tuesday) will start earning interest from the Tuesday.

Interesting. Does this mean that Coventry pay interest on cheques from the day of receipt? Lloyds claim that they are the only bank to do that.

mary · 22 August 2006 at 11:55AM

Dagobert wrote:

As far as I understand, you would have to set up the external transfer on Friday before cut-off time to leave your current account on Monday. .

No I'm quite sure you can arrange such transfers anytime up until Sunday midday to be effective on Monday, but around Sunday 4 p.m. ish I've found you are then in Monday!!

Dagobert wrote:

Interesting. Does this mean that Coventry pay interest on cheques from the day of receipt? Lloyds claim that they are the only bank to do that.

That's what the lady told me yesterday. However as with all customer services, it's worth treble checking they all tell the same story.

Dagobert · 22 August 2006 at 3:57PM

mary wrote:

I was told ... that ... my cheque once received will start earning interest

That's correct indeed: As per the T&Cs (11) all deposits including cheques start earning interest on the day received.

In this case the smartest move from ING to Coventry would have been via a cahoot cheque account, where the whole amount would have earned 3.65% until the cheque was presented. You would have probably even had 1 or 2 days' overlap.

I seem to have missed a trick here.

Lloyds to Coventry First - the slow route

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