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Mini-cash ISA transfer-why by cheque?

Has pressure been applied (by MSE?) to the Banks/Building Socs providing Mini-cash ISAs regarding the loss of several days interest to savers when funds are transferred to a new ISA? This is always done by post to my knowledge which takes a while and then the remittance has to be cleared before earning interest again. In this day and age cleared funds could be transferred electronically surely? Otherwise the punter is being penalised again whilst the transferring bank is in possession of funds which costs them nothing.
Filiss

Comments

  • grumbler
    grumbler Posts: 58,629 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    tly175 wrote:
    ... In this day and age cleared funds could be transferred electronically surely?
    Free electronic transfer takes about 3 working days - the same as a cheque takes to clear. The same day transfers cost now about £20. You don't lose interest (OK, almost don't lose) during the time the cheque is on its way from one bank to another.
  • derrick
    derrick Posts: 7,424 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    My understanding is that it is due to money laundering regs and they need the originating paperwork and paper trail hence the need to post it.
    Don`t steal - the Government doesn`t like the competition


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