Principality charge for transfer to current a/c

Jake'sGran

I have received a letter today saying that a 2 yr bond has matured. There is a list of options for their other a/cs but if I want to close the a/c they will charge £37.50 to send the funds to my current a/c or I can have a cheque.

Has anyone ever come across this?
Obviously, I will have to accept a cheque but I am angry about it and am surprised that they can levy a charge like this for a simple electronic transfer.

le_loup

It's not a BACS but a CHAPS payment ... and that's what banks charge. It's same day.
I don't know why some societies can do BACS and others can't, but there you are. Take the cheque and moan at them.

claire07

I had a Principality fixed rate bond mature and they wouldn't even transfer it to my Principality esaver, so I had to accept the cheque.

KMK

This happened to me too and it was quite inconvenient having to wait for the cheque to clear in the building society and then transferring the cash to my on line acccount.

I rang to complain and was told that they have to pay this amount. YBS charge much less for this procedure. It is excessive for any routine procedure, even CHAPS. They are just presssing buttons, aren't they?

I was not impressed!

rb10

KMK wrote: »

It is excessive for any routine procedure, even CHAPS. They are just presssing buttons, aren't they?

There is actually a fair amount of manual processing by the bank to make a CHAPS payment - it's not as automated as you'd expect.

It would be nice, however, if they gave the option for a standard (and free!) BACS payment.

SallySunshine

That's a bit steep, different banks charge different prices, but that's the highest I've ever known.

if it's a large sum, some banks will refuse to issue a cheque, also with BACS I think there is also a limit.

Jake'sGran

They have not mentioned that it would be done by CHAPS. It's totally unnecessary.

I am going to ask Diana Wright in The Sunday Times Questions of Money if all banks have the authority to do this.

DavidHayton

Jake'sGran wrote: »

They have not mentioned that it would be done by CHAPS. It's totally unnecessary.

I am going to ask Diana Wright in The Sunday Times Questions of Money if all banks have the authority to do this.

I suspect that banks can do as they please, and as long as they offer you one way of getting the money out without a fee (by writing you a cheque), I don't think that DW would want to get involved.

I agree that it is ridiculous that they don't offer BACS, but that is their decision.

David

Milarky

Jake'sGran wrote: »

I have received a letter today saying that a 2 yr bond has matured. There is a list of options for their other a/cs but if I want to close the a/c they will charge £37.50 to send the funds to my current a/c or I can have a cheque.

Has anyone ever come across this?
Obviously, I will have to accept a cheque but I am angry about it and am surprised that they can levy a charge like this for a simple electronic transfer.

Well, they messed up my cheque by misspelling my name so they offered a 'free telegraphic transfer' [normal price £37.50] and then could not send the money successfully to this account because not all personal accounts have sort codes which accept a 'CHAPS' payment. [I even queried this before the event and was told it would be 'OK'. DON'T just take the staff's word for something like that - check your receiving sort code at APACS first!]

I wonder if small building societies (etc) will simply get out of using Faster Payments after 1 Jan 2012 by continuing to redeem by cheque? That's ironic when the banks are trying to get personal customers to stop using cheques themselves by (eg) taking away cheque guarantee facilities.

Thrugelmir

Milarky wrote: »

I wonder if small building societies (etc) will simply get out of using Faster Payments after 1 Jan 2012 by continuing to redeem by cheque? That's ironic when the banks are trying to get personal customers to stop using cheques themselves by (eg) taking away cheque guarantee facilities.

Faster payments have payment transfer limits. So not necessarily any "faster" in some instances. Hence same day Chaps for larger sums may be the preferered option if the money is required in a hurry.

Thrugelmir

Jake'sGran wrote: »

I have received a letter today saying that a 2 yr bond has matured. There is a list of options for their other a/cs but if I want to close the a/c they will charge £37.50 to send the funds to my current a/c or I can have a cheque.

Has anyone ever come across this?
Obviously, I will have to accept a cheque but I am angry about it and am surprised that they can levy a charge like this for a simple electronic transfer.

Lloyds charge personal customers £30 for a CHAPS transfer.