Can only pay on the 4th of each month?

danster

hi all,
ive recentlt signed up to fundsnetwork (part of fidelity). ive just found out there that they can only accept payments on the 4th of each month. this is no good to me because sometimes i dont get paid until the 10th of each month (i work for a small company). so im being faced with instantly going overdrawn each month (fee: £30!). does anyone know why they could only accept payments on this date?
im going to phone them later and see if they can be flexible, but thought ild see what you guys said first.
thanks

dunstonh

They only have one payment date in the month and that is normal with fund supermarkets (although the date varies with each). The more collection dates they have the more they are charged. I discussed regular contribution ISAs with a rep some time back and he said that regular contributions barely make any money. So, they have to consider costs.

If you cannot afford to make contributions, you really shouldnt be investing in the stockmarket like this but perhaps should look to build up a cash ISA emergency fund instead.

danster

hi, thanks for your reply.
ive maxed out my isa allowance for this year, and can afford to make payments, but pressumed (as with savings accounts, isas, saving sschemes etc...) that i could choos teh date to make payments. the 4th is too early in the month. a good thing is my wages were paid directly into my account, but theyre not!
like you say, this looks like the only date they take payments. im sure this courses problems for a lot of people, because not everyone can guarantee theyll have sufficient funds so early in each month.

Milarky

Have you asked them to vary the date? This is appalling customer service frankly if they say they ''can't'' (be bothered to) offer either a range of dates or any date 1-28. Other companies will certainly oblige.

Recently F&C was merged with another large fund manager. The service changed (and became less personal) quickly. When I amended a DD amount recently it defaulted from what it had been set up at (25th) to the 1st (only option offered.) This was requested online I should hasten. When I contacted them about getting it moved they gave me an address to write to (written instructions are quite usual to require investment changes) and it was amended in a month.

Your option is to write to them - giving them an instruction/request to amend you date to one you want. You could state that if they 'will not' comply (rather than 'can not') or 'meet' this request then you 'will' (rather than you 'might') reconsider your continuing investment with them. Remember you don't have follow through with any implied suggestion you make but they have to reply appropirately to your request.

Don't just give them an easy life - but don't make their life a total ultimatum either - aim to strike a balance. Just remember that in general you give the instructions and it is your money. They are supposed to be providing a sevice and there can be no excuses for 'just not doing things' unless there are compelling reasons why not.

In this day and age of 24/7 banking it can't cost them more than pennies to provide customer choice.

dunstonh

Have you asked them to vary the date? This is appalling customer service frankly if they say they ''can't'' (be bothered to) offer either a range of dates or any date 1-28. Other companies will certainly oblige.

The big two, Cofunds and Fidelity have just one date.

Your option is to write to them - giving them an instruction/request to amend you date to one you want. You could state that if they 'will not' comply (rather than 'can not') or 'meet' this request then you 'will' (rather than you 'might') reconsider your continuing investment with them. Remember you don't have follow through with any implied suggestion you make but they have to reply appropirately to your request.

They will "politely" say tough and we dont care. There just isnt the profit available to offer any day in the month.

In this day and age of 24/7 banking it can't cost them more than pennies to provide customer choice.

On a £50pm regular contribution ISA. One missed payment (i.e. cancelled mandate or bounce) can wipe out all the profit and put the account in a loss making position. The margin is that tight.

nrsql

Just miss one month then you have the money in your account 25ish days ahead waiting for the transfer.

Another option is maybe to transfer into a cash account with the supermarket and let them do the transfer from there if they allow that - it would end up the same as above but you would be in control of when the money leaves your account.

SeanW

Fundsnetwork take my money by Direct Debit on the 20th of each month

dunstonh

SeanW wrote:

Fundsnetwork take my money by Direct Debit on the 20th of each month

That date does corrospond with my clients using FNW. Cofunds are 25th monthly.