automatic reinvesting of my money by bank

jessica111

I recently had a matured bond with barclays. As other bonds I have had simply go into a holding account until you decide what to do with the money I assumed this would happen with Barclays. However after I spent three or four weeks looking around an deciding what to do and sending for information I made up my mind only to find that barclays has reinvested my money in another 18 month bond - at 1.5%!!!!!!. They said they had written and put this in a letter, but if they did I certainly did not understand it. Does not replying to their letter give them the right to just help themselves to my money- apparently without giving anything like a comparable rate to last time. Is this legal?

dunstonh

Does not replying to their letter give them the right to just help themselves to my money- apparently without giving anything like a comparable rate to last time. Is this legal?

If the fixed term deposit has an auto-reinvestment option/facility and you have that enabled on yours then yes its legal. Money market based fixed term deposits quite often have this facility (rather than the retail fixed term deposits that you more commonly see).

Ask Barclays for where it says they will auto-renew. If they can provide it then fair enough. If they cant then you should ask them to void the deposit as they have no grounds to roll it over.

lincroft1710

LloydsTSB write to term deposit account holders about 4 wks prior to maturity saying that unless they hear from you they will reinvest into another/same td.