CHAPS payments to savings accounts (bonds)

blackswan2

We are moving house in a few weeks, we are selling and moving into rented, so have a lot of equity to squirrel away for 12 months.

I have opened bond accounts with Northern Rock, ICICI and The AA so far - I notice you have to have a linked current account to make the opening payment - but I was hoping to pay by CHAPS when we 'complete'.

Do you think institutions will accept this or will they only accept a cheque from the current account?

Thanks in advance ....

neil324

ICICI you can, but The AA accept a cheque only to open their bonds.

KingL

It varies between banks. Some will accept an electronic transfer as an initial payment, others want to receive a cheque drawn on a UK bank (presumably as part of their requirements for proof of id).

Can't you get the account up and running now with a cheque for £1/£10/£100 and then CHAPs over the big wad when you are ready ?

blackswan2

Northern Rock accept CHAPS.
The other two I think you can only make one deposit, so don't think the 'up and running' thing'll work, but I'll check of course!

Thanks.

noh

The AA fixed rate account allows additional deposits by DD as long as the offer is still open. The initial deposit is by cheque only.

http://www.theaa.com/savings/internet_year_fixed_terms.html


Nigel

Speculator

. Initial deposit

1. New AA Internet savings customers. You must make the payment to your account for the full amount you would like to invest with a cheque drawn from your Linked Account and made payable to yourself. Your name must be pre-printed on the cheque. Once we have made sure the details on the cheque correspond with your Linked Account we will pay it into the account.
2. Existing AA Internet savings customers. Initial deposits will be made by direct debit from your nominated Linked Account.

http://www.theaa.com/savings/internet_year_fixed_terms.html

noh

Speculator wrote: »

. Initial deposit

1. New AA Internet savings customers. You must make the payment to your account for the full amount you would like to invest with a cheque drawn from your Linked Account and made payable to yourself. Your name must be pre-printed on the cheque. Once we have made sure the details on the cheque correspond with your Linked Account we will pay it into the account.
2. Existing AA Internet savings customers. Initial deposits will be made by direct debit from your nominated Linked Account.

http://www.theaa.com/savings/internet_year_fixed_terms.html

And you may make additional payments minimum £1 via DD while the offer is still open as stated in paragraph 4

4. The minimum additional deposit is £1. Deposits can only be made whilst the issue remains open to new investors.

Nigel

blackswan2

Thanks.

Re: "Your name must be pre-printed on the cheque."


Does that just mean a normal cheque from a normal cheque book? I presume it does!

Speculator

The minimum deposit is £500. What if you send an intial cheque for say £100 and the issue closes before you get a chance to pay additonal deposit by DD? Will the £100 still earn 7.21% bearing in mind the MOB is £500.

noh

Speculator wrote: »

The minimum deposit is £500. What if you send an intial cheque for say £100 and the issue closes before your DD can be set up? Will the £100 still earn 7.21% bearing in mind the MOB is £500.

No as far as I can see from the T+Cs your initial cheque has to be for £500 or more otherwise they won't open the account.
I think it is quite likely that this offer will close soon and the op may not get his house sale proceeds in time.
I applied for this account on 26th September received letter asking for initial cheque on 30 Sept sent cheque off on 1st October. Direct Debit has been set up but not yet got password for web access, when I do I will try and add more to the account and let you know what happens.

Nigel

Speculator

It maybe a good idea to apply for a new AA Fixed rate Bond online. Therefore, if they suddenly close the issue on Monday and you've not received your password, they will probably allow people who have not received thier letters requesting cheques a few days to get their cheques in. Maybe use a different linked account for the second application.