BACS transfers from cash ISAs

Zaarin

I've recently opened an 'ISA Saver Direct' phone/online cash mini ISA with the Halifax, and as I was playing around with their net banking I found that there was no facility for making BACS transfers outside the Halifax - no problem transferring around within the Halifax (where I have no other accounts), but no way to transfer out. This is not made clear at all in the T&Cs or any of the literature on the account.

I phoned them up to query it, at which point I was told that this was not their decision - they claimed that online-authorised BACS transfers to other financial institutions weren't allowed under general ISA regulations, but that it would be no problem to do by phone. Is this true? Since this is the first ISA I've ever had I'm not very familiar with the more intricate regulations on them, but it seems very unlikely; they gave me a rather odd non-explanation, saying that if they allowed online transfers they couldn't keep track of some kind of tax details or something - very bizarre. Surely records are kept equally well for phone and net transfers?

I'm going to open another Halifax account soon anyway, so it won't be a problem for long, and I'm not planning to make any withdrawals at the moment, so it's not terribly important, but it annoys me that I would be forced to phone an 0845 number and languish in a queue if it could be perfectly well done online. Anyone know the legal position on this?

Milarky

Do you mean by 'BACS transfers outside the Halifax' for the purpose of a withdrawal of some ISA funds or in order to move the ISA elsewhere?

Obviously the transfer-out to another provider would be handled by Halifax (at the other provider's request after you approach them) This is true of ISAs in general - you don't handle the money other than paying in and making withdrawals. So DIY transfers don't happen.

And to withdraw (well, not done that yet!) you'd ask Halifax and nominate an account with them to receive. There is no reason in principle why they can't BACS-transfer a withdrawal eleswhere but this will depend on them - there won't be an ISA rule to cover it...

Bisoy

Zaarin welcome to MSE.

When you open an ISA from any lender they will ask for your nominated account in case you would like to withdraw your funds or they could simply write a cheque to you.

As from personal experience I haven't come accross of any online facility to move your ISA to different lender if you feel like moving to a better rate. My guess is, this is to prevent any fraudulent transaction over the net.

I have transferred my cash ISA from the period April 2005 to April 2006 three times for chasing a better rate all with a transfer request form followed by some phone calls.

derrick

Zaarin wrote:

but it annoys me that I would be forced to phone an 0845 number and languish in a queue if it could be perfectly well done online.

You do not need to use the 0845 No, go to the "saynotto0870" site, and type in, halifax bank, you will get a lot of geo numbers and some freephone numbers.

Zaarin

Thanks for the replies everyone. I wasn't talking about 'transfers' = moving providers, but only about withdrawls. What perplexed me was that I was explicitly told that it was a general ISA regulation that BACS withdrawals to accounts with other institutions could not be set up through online banking services, but that they could be over the phone. It just struck me as very strange, and more than likely a call-centre employee not having the first clue what they were talking about. And the T&Cs are a bit misleading about this:

Withdrawals/Closure
• No notice required.
• By telephoning 08457 26 36 46 to transfer
funds to another account or to an account
with another financial institution.
• Cannot be done at branches or by cheque.
• Online by visiting https://www.halifax.co.uk/savings.

Not a big deal, I was just wondering what possible reason there could be for any regulation differentiating between phone and net authorisation for external payments.

derrick

Quote:
Withdrawals/Closure
• No notice required.
• By telephoning 08457 26 36 46 to transfer
funds to another account or to an account
with another financial institution.

The geo number for that 0845 is:- 01904 611110.

Or you could click on the link in your post, click on the "contact us" button, then in the drop down box click on "phone numbers", click "go", then on the new page, left hand side menu, click on "We'll call you", choose a product, enter your number in the next page and they will call you at their cost.

Milarky

derrick wrote:

Or you could click on the link in your post, click on the "contact us" button, then in the drop down box click on "phone numbers", click "go", then on the new page, left hand side menu, click on "We'll call you", choose a product, enter your number in the next page and they will call you at their cost.

A word of caution - last time I did this they reminded me "this is a sales line, but I'll transfer you.." so put on your best smilie voice..

derrick

[FONT=Arial, Helvetica]Well I have used it with no problems, and the following is on the page you get for the call back service.
[/FONT]
[FONT=Arial, Helvetica]
[/FONT]
[FONT=Arial, Helvetica]If you want to apply for any of the following products or just chat about your needs, try our FREE callback service.[/FONT]
[FONT=Arial, Helvetica]All you need to do is give us your phone number and we'll call you back at a time to suit you.[/FONT]
[FONT=Arial, Helvetica]Choose the product area you are interested in from the list below, then enter your details:[/FONT]

• [FONT=Arial, Helvetica]Bank Accounts[/FONT][FONT=Arial, Helvetica] (All accounts - except Expresscash)[/FONT]
• [FONT=Arial, Helvetica]Credit Cards (All credit cards - except Charity Cards)[/FONT]
• [FONT=Arial, Helvetica]Holiday Money[/FONT]
• [FONT=Arial, Helvetica]Home Insurance[/FONT]
• Travel Insurance
• [FONT=Arial, Helvetica]Mortgages[/FONT]
• [FONT=Arial, Helvetica]Personal Loans[/FONT]
• [FONT=Arial, Helvetica]Savings[/FONT][FONT=Arial, Helvetica] (All savings accounts - except WebSaver)[/FONT]
• Sharedealing (All sharedealing products)

You could use any of the above links and it will take you to the page to input your phone number for a call back, saves going through the website.