ING to ICESAVE; Whats the quickest way to move money?

vortex1150

I am about to move funds from poorly performing ING to ICESAVE, but want to minimise the number of lost interest days. Assuming each take 3 days (ie; ING to linked current acc then linked c/a to ICESAVE) and throw in 2 days for the weekend, thats a total of EIGHT days, or about £40 interest lost on my £40K.

Is there a quicker way? Has anyone phoned ICESAVE and used their debit card for an instant transfer? That would at least save 5 days.

cheers

tom188

Cant do debit card payments to icesave.

You could potentially set up direct debit to take money out of current account the day after it arrives from ING direct, but could end up being charged if things go wrong.

Do ING not do chaps? That would save £20-30 perhaps.

Dagobert

The BACS clearing cycle takes 2 days*. Some banks hold on to the money before passing it on to the BACS cycle thus earning some extra money. Some other banks hold on to the money on receipt from the BACS cycle before passing it on to the customer.

Examples:

• banks which hold on to the money before transfer: A&L, cahoot
• banks which hold on to the money after transfer: ICICI

So, if you send money from A&L to ICICI on Monday, it will be credited on Friday.

When the money earns interest is yet another matter: some banks don't pay interest on the day of receipt; some banks don't pay interest on the day of withdrawal; or both.

Conclusion: to find out what a particular transfer costs you need to find out whether the two banks involved hold on to the money before/after BACS and you need to read both T&Cs to check when they pay interest.


*Terminology: by 2 days I mean "in 2 days' time, for instance money sent on Monday arrives on Wednesday; banks usually call this a 3-day transfer

Dagobert

tom188 wrote:

Do ING not do chaps? That would save £20-30 perhaps.

Not unless huge sums are involved. By huge I mean £90K for a basic rate tax-payer! See [thread=257720]CHAPS - when it's worth it[/thread].

KTF

If you move the cash out on Monday it will be in Icesave by Friday (assuming it hits the bank account tuesday or wednesday and is transferred out on the same day).

tom188

Dagobert wrote:

Not unless huge sums are involved. By huge I mean £90K for a basic rate tax-payer! See [thread=257720]CHAPS - when it's worth it[/thread].

Yes but the alternative is two transfers, so a possible 8 day period rather than the 3 days your working on Dagobert. Hence it would be worth it for lower amounts.

Dagobert

Based on the explanation in post #2, your question cannot be answered fully without knowing which bank the ING's linked account is with as both the sending and receiving banks determine the duration of a transfer.

However, I can fill in some of the blanks:

• ING does not hold on to the money before passing it through BACS.
• Transfers to ICESAVE can be initiated from an external account using sort code and account number provided and your ICESAVE account number as reference.

Depending on the current account, this transfer can be done in 4 days:
ING Monday -> c/a Wednesday -> ICESAVE Friday

If your current account bank holds on to the money on receipt or before sending, this cannot be done within a week. In this case, you hopefully also have a savings account with your current account bank, where you could park the money over the weekend.

Dagobert

If the transfer is actioned on a Monday and the money received on Friday, 4 days of interest will have been lost. (Both ING and ICESAVE pay interest on the day of receipt and not on the day of withdrawal.)

The cost of this transfer (lost interest) is £20.82. This will be recouped after 27 days.

Any funds you need access to before the 27 days are up should not be transferred to ICESAVE.

vortex1150

The linked current accout is Nationwide. If I initiate the transfer on Monday morning from ING, then it would probably not show up as 'available funds in N/W until Thurs am. (or end of the day Wed). There is no way it would be with ICESAVE earning interest by Friday, if 2nd transfer was initiated on Thurs.

I suppose the best plan, as mentioned, would be to 'park' the money in the Nationwide esavings and do the ICESAVE transfer the following week. This would mean 6 days loss of interest + a little bit as N/W esavings rate is lower.

Cheers

Dagobert

vortex1150 wrote:

The linked current accout is Nationwide. If I initiate the transfer on Monday morning from ING, then it would probably not show up as 'available funds in N/W until Thurs am.

You can find out by making a £1 test payment from ING to Nationwide. BACS payments, once received, are cleared funds (unlike cheque pay-ins). The funds will only be available as late as Thursday if Nationwide hold on to the funds after BACS and before crediting them to your account.

If the funds arrive at Nationwide on Thursday, you will have probably lost 3 days' interest. I say probably because you would need to read Nationwide's T&Cs to find out whether they pay interest on the day of receipt and/or withdrawal.

vortex1150 wrote:

This would mean 6 days loss of interest + a little bit as N/W esavings rate is lower.

No. The transfer from Nationwide to ICESAVE takes 2 days. So would lose 5 days altogether if Nationwide holds on to the funds on receipt as described above.


I would be grateful if you could let me know your actual transfer times to and from Nationwide as I maintain a BACS duration table for all bank to bank transfer combinations I know of.

Dagobert

It is also worthwhile checking Nationwide's current Transaction Limits. According to my latest information, you can transfer your £40K in multiples of £10K.


Please, update above thread if you find out otherwise.