Post office online saver - massive warning!

edited 30 November -1 at 1:00AM in Budgeting & Bank Accounts
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chequeoutchequeout Forumite
171 Posts
edited 30 November -1 at 1:00AM in Budgeting & Bank Accounts
Hi all!

Just a quick - but very urgent - warning to anyone, like me, who has been enticed by trumpeting of the "high" interest rates on offer from the Post Office online savings account.....

I arranged the transfer, by direct debit, of £5340 (my cash ISA deposit for next year) from my Santander current account to the Post Office online saver, on Monday.

It has left my current account today (Friday) but is still not showing in the Post Office account. When I called up to enquire, the lady on the phone said it probably wouldn't show until Monday! So, I can't get my hands on my own money for the whole weekend. Sure, I'm not planning to withdraw it (hence arranging for it to go into the PO savings account in the first place) - but that isn't the point. It is MY money and there is no record of it anywhere other than it has left my current account.

The helpful lady on the phone actually admitted it is bad, she said lots of people are ringing up "moaning" about the fact that their money is lost in cyberspace for a good few days after leaving their current account.

Just a warning - I feel it is only right to warn people as this account is receiving a lot of good publicity because of good interest rates. Yes, this is good - but you can't actually get your hands on your own money!
Pounds, shillings and pence; I caught a dirty wench, I gave a cough, her leg fell off, pounds shillings and pence :rotfl:

MSE EXPERT - THE CARLSBERG OF THE MONEY WORLD :beer:
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Replies

  • Thank you very much for this warning, hopefully it will help others to make a more informed choice.
  • johnmoney05johnmoney05 Forumite
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    How massive? Why don't you pay by debit card or online banking? Direct debit is slow as usual.
    Just like "Massive warning", don't post your letter/package using surface mail to overseas, it will take months!
  • le_louple_loup Forumite
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    It probably won't be available till Tuesday. That's the three day cycle. What you should be moaning about is Santander who took 5 days to put your money in the system.
    There is a money transfer problem in this country but it certainly ain't the Post Offices fault!
  • P3droP3dro Forumite
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    BACS transfers always take 3 days to go through
  • FunkyfreddyFunkyfreddy Forumite
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    chequeout wrote: »
    It has left my current account today (Friday) but is still not showing in the Post Office account. When I called up to enquire, the lady on the phone said it probably wouldn't show until Monday! So, I can't get my hands on my own money for the whole weekend. Sure, I'm not planning to withdraw it (hence ...

    Until Direct Debits are sent by a Faster Payments system then why do you expect a new DD intsruction (wbich I take it had to be set up to start with) be credited the same day it was debited.

    No warning, massive or otherwise really needed.

    FF
  • xyz123xyz123 Forumite
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    OP- your post is misleading. so you set up a one of direct debit (which means post office set it up for you) for over £5k rather than do a transfer yourself or a S.O.? so that means you are allowing post office to send requests to santander for monthly payments of same/varying amount?

    I think what you mean is that it was a BACS transfer. you should have known it takes 3-5 days for BACS transfer rather than just claiming its an absolutely urgent issue for others to be aware of.
  • I am so sorry if I offended anyone. I was only trying to warn other people who don't know the finer details of direct debits / faster payments, etc. I for one am going to be worried all weekend until it shows in the account and I just wanted to warn people.

    I know people can get shouted down in these forums and I am sorry if I've offended any regular posters on here. It really wasn't meant as an insult to the Post Office. I feel really bad now and I am sorry. How do you delete posts? If someone tells me I will delete this post.
    Pounds, shillings and pence; I caught a dirty wench, I gave a cough, her leg fell off, pounds shillings and pence :rotfl:

    MSE EXPERT - THE CARLSBERG OF THE MONEY WORLD :beer:
  • xyz123xyz123 Forumite
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    chequeout wrote: »
    I am so sorry if I offended anyone. I was only trying to warn other people who don't know the finer details of direct debits / faster payments, etc. I for one am going to be worried all weekend until it shows in the account and I just wanted to warn people.

    I know people can get shouted down in these forums and I am sorry if I've offended any regular posters on here. It really wasn't meant as an insult to the Post Office. I feel really bad now and I am sorry. How do you delete posts? If someone tells me I will delete this post.

    its not about ofending anyone. you are not ofending anyone personally but many members on this forum have good financial management/knowledge and it is very annoying when someone doesnt give full information and then tries to make a meal out of that (by claiming urgent issue) when that is very normal practice.
  • OliproOlipro Forumite
    717 Posts
    a Direct Debit is in effect a double BACS transfer; it takes 3 working days to get debited and then a subsequent 3 working days to be credited.

    Unless you're incapable of making transfers yourself from your own account, don't use it.
  • edited 21 January 2011 at 1:59PM
    jambosansjambosans Forumite
    1.5K Posts
    edited 21 January 2011 at 1:59PM
    Olipro wrote: »
    a Direct Debit is in effect a double BACS transfer; it takes 3 working days to get debited and then a subsequent 3 working days to be credited.

    Incorrect. This is a common misconception with Direct Debits, they take three working days from start to finish, on the third working day the amount is "simultaneously debited from the recipients’ accounts and credited to your account." (quoted from Bacs website, link below):-
    http://www.bacs.co.uk/Bacs/Businesses/DirectDebit/Collecting/Pages/GettingStarted.aspx

    In the OP's case they or the Post Office have either:
    a) mis-represented a standing order as a Direct Debit, in which case the transfer takes three to four working days (depending on how quickly Santander enter it into BACS) from the day it is sent; or
    b) the payment was indeed collected via Direct Debit but the Post Office have additional clearing time when they receive a payment (e.g. all payments go into a holding account and then are sorted to the relevant customer account).
    Anything I post is my opinion, so from time to time I may be wrong. I try to provide answers based in fact, however I don't know everything, so (like all posters on MSE), take what I say with a pinch of salt.
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