Excluded from Best Instant Access A/c due to Current A/c

ian_h

Surely I cant be alone in this situation.......

We all know that Chequess are on their way out and only issued around 12 each in 2008 so they expect to be "phased" out by 2018.

I have a basic bank account which does everything except have a cheque book.

It's never been an issue until I tried to open an AA Savings account (operated by Birmingham Midshires part of HBOS). Although I can operate the linked account by DD as they require they insist that the initial deposit is drawn on a cheque in my own name on that linked account.

I called and suggested I could send a copy statement to verify the account belongs to me but no joy "if you cant send a cheque you cant have the account".

OK I thought I'll move down the best buy table to the next best, start the application process for ING Direct and .... you've guessed it - you need to make the initial deposit by cheque etc etc

How many others are being excluded from getting the best available rate (which is vital in the current market for savers) ?

This process seems draconian and out dated - there are lots of other ways my ownership of an account could be verified.......

Anyone else had theproblem or got any thoughts or suggestions?

Cheers

Old_Wrinkly

My only thought on this is that I agree with you.

It seems out-dated, as a method of proving the existence of a bank account with another provider.
(Edit: In actual fact, it doesn't even really do this, as I opened my AA account with a Halifax cheque - I only use these cheques to open savings accounts. )

And why should this matter anyway? You are tying to open a savings account, not a current account (with credit implications).

I would also be grateful for clarification on this.

Jake'sGran

I think it is a "jobsworth" kind of situation. It's in their Terms and Conditions so that is what you must do. I too hate issuing cheques these days but have done a couple recently for new ISA accounts. The only person who could change it to allow you to send money by BACS or other method would be the CEO. Seems like the banks still rule, OK?

opinions4u

From their T&Cs:

Initial deposit. You must make the opening payment to your account 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. You cannot pay any more cheques into the account.

This looks to me to be a logical anti-fraud and anti-money laundering measure that makes sense for a provider that doesn't operate a branch network. Apologies to the OP as that doesn't help you, but it does provide a reason in part.

Halifax Web Saver Extra pays 2.6%, allows 1 withdrawal without penalty and after opening online you would be able to verify identity in branch if needed.

savetilibleed

I just found this on the BBC News website about a Pensioner Group calling for a paper alternative to cheques as they are phased out. The issue of the phasing out of cheques was also reported HERE on the BBC News Website.

It might not help you now, but if the Payment Council do bring in an alternative, this will help others such as you, OP.

ian_h

Thanks everyone for your feedback and

opinions4u wrote: »

From their T&Cs:



This looks to me to be a logical anti-fraud and anti-money laundering measure that makes sense for a provider that doesn't operate a branch network. Apologies to the OP as that doesn't help you, but it does provide a reason in part.

Halifax Web Saver Extra pays 2.6%, allows 1 withdrawal without penalty and after opening online you would be able to verify identity in branch if needed.

I cant have the halifax account and fully understand the need to verify my identity and prevent money laundering but there are lots of other ways to do this electronically this making the branch network reference irrelevant.

One of the best verificatuion methods is used by the pre-paid card providers in association with the IPS - you simply enter your passport, identity card or drivers licence number. http://www.ips.gov.uk/cps/rde/xchg/ips_live/hs.xsl/563.htm