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

Dagobert

One should also be aware of the sending bank's cut-off time - the latest time a payment can be actioned for that day. The cut-off time varies from bank to bank. It could be as early as 11:00!

ING's cut-off time is 18:00.

tom188

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

But if you do it by direct debit then you should be able to take the whole lot and keep your money in the e savings account until the day before the transfer is due to take place. Then it should be a sameday transfer.

Dagobert

tom188 wrote:

Dagobert wrote:

tom188 wrote:

Do ING not do chaps?

Not unless huge sums are involved. By huge I mean £90K for a basic rate tax-payer!

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.

Wow - you must know something we don't know: the OP's tax band, without which you couldn't have worked this out:


Break-even calculation for OP's Transaction

Capital to be transferred: £40,000
cf = £30 CHAPS fee
p = 5.45% interest rate
tb = 20% basic rate tax payer
d = 8 days gained

be = (£30 * 365 * 100 * 100) / ((5.45 * 8 * (100 - 20)) = £31,393

as above except:

tb = 40% higher rate tax payer

be = (£30 * 365 * 100 * 100) / ((5.45 * 8 * (100 - 40)) = £41,857

vortex1150

So, with the accounts in wife's name, ie; 0% tax bracket, the be point is £25,114, so definately worthwile on my £40K ....but, I don't think it is possible to do a CHAPS transfer directly from ING to ICESAVE...

...or does anyone know different?...

Dagobert

vortex1150 wrote:

So, with the accounts in wife's name, ie; 0% tax bracket, the be point is £25,114, so definately worthwile on my £40K ....but, I don't think it is possible to do a CHAPS transfer directly from ING to ICESAVE...

No CHAPS from ING to anywhere.

Your best option is
Monday: 1 ING -> NW
Wednesday: 2 check whether funds arrived* 3 initiate DD from ICESAVE** scheduled for Friday

ICESAVE pay interest from the day of receipt, also for DDs. I am not quite sure how DDs work. It appears that they come off one a/c on the same day as they are credited. But does that mean that there is no loss of interest? A DD always has to be initiated a minimum of 2 days in advance. I wonder when the funds will have to be in the current a/c at the latest.

Alternatively, you could BACS the money out on Wednesday. I have been told that NW do not hold to the money before sending, therefore should arrive on Friday.

If, however, money arrives on Thursday at NW, park it in eSaver over the w/e.



* I am pretty sure it will as ING do not hold on to the money before sending - unless NW is one of the few who hold on to the money upon receipt.
** Beware: ICESAVE's cut-off point is 11am!