Daylight Robbery !!!!

Churchpolly

Hi, I had some money in an online account with the Post Office and spotting Martin's email where he gave details of their rates for one, two and three year fixes I went online and opened an Online Bond, fixed for one year at 3.27% gross. I received a letter a few days later to say my money was in a "holding account" - it pays 2.1% gross aer, which includes 2% bonus if held in that account for a year - which it patently isnt because its going into an online bond and I found out when I rang to query this that it will stay there until the new online bond has been opened and my money received, which will take ten working days. So this means it will earn practically nothing for the next couple of weeks. :mad: Why do they say they need to put it in this account for ten working days when the money isnt even coming from another bank or building society? mmmm could it be because when you add up these sums from probably millions of savers they get loadsa money for practically no interest? I rang up and complained and the guy on the phones said "its in the terms and conditions and you accepted that when you opened the bond". Well, yes it probably is but please, who has the time to read the reams of small print? Admittedly it did say in their confirming email that it could take ten days to come from a bank or building society and to be prepared for that - but my money is already with them! (and I thought banks were supposed to transfer money quicker these days or did I dream that?) Oh and the guy then said it was all to do with money laundering regulations - but surely they have already done that when they had the original sum transferred to them? Sorry for going on but this is blatant daylight robbery and I would love Martin to take it up with the Financial Ombudsman on our behalf - we savers get a raw deal as it is without banks like the P.Office taking the mickey! :mad:

dunstonh

Oh and the guy then said it was all to do with money laundering regulations - but surely they have already done that when they had the original sum transferred to them?

The money laundering regs were applied to maturities a few years back.

Not saying that it is a valid "excuse" but just pointing out the that they do need to check. Typically that happens when the funds are not going back into the same account that the original money was received from.

and I would love Martin to take it up with the Financial Ombudsman on our behalf

How much are you going to pay Martin for doing your paperwork?
The FOS cant be involved at this stage anyway. You cannot circumvent the complaints process by going to the FOS first. You have to allow the firm to give their response to your complaint and only then can you go to the FOS.

Sceptic001

Do you have a link to the current Post Office T&Cs? They must have changed because I moved money from an online saver into the previous 3-year account (4.21% AER) a couple of months ago and it was instantaneous. I even recommended the method here to someone complaining about the ten day delay when using the direct debit method.

xylophone

It was an instant transfer back in July of this year.

Churchpolly

I just got a letter from them (my usual postman is on hols and so it is late today) - and the Post Office have sent me details of my new bond account which apparently opened on the same day I transferred the money - why then did they send me that interim letter with the low interest rate etc. and why on earth didnt the person at the customer care centre know that? Honestly, what a waste of time and effort - if he had only checked and told me it had been opened and was earning the proper rate of interest then I would not have wasted my time - or yours! But, thank you all for your responses, it was good of you to take the trouble - can I just say I wasnt asking Martin to do my complaints for me, I am very well able to do that myself, its just that if banks are holding onto cash for this length of time at a paltry interest rate then it needs to be brought to the attention of the regulator as soon as possible. cheers, Polly.

Gromitt

Churchpolly wrote: »

who has the time to read the reams of small print?

Most of the people who want to know exactly how it all works? Most people that don't want to expect one thing and receive another? Most people that want to know what they are agreeing to?

You can't blindly accept everything and then complain about it afterwards.

Sceptic001

Gromitt wrote: »

Most of the people who want to know exactly how it all works? Most people that don't want to expect one thing and receive another? Most people that want to know what they are agreeing to?

You can't blindly accept everything and then complain about it afterwards.

Surely if something has a material effect on the effective AER (which a two-week delay in getting the account up and running arguably does) then this should be noted in the key facts, not tucked away in small print.

Good to see OP's problem was in fact misinformation supplied by PO, but PO admin and staff training does seem very poor.

Seamus_MacDonald

Thank you for this,

I've been through the same kind of hell with the PO this last month.
They wouldn't let me apply for a new account online so I had to apply by post. (Their computer wouldn't accept my address although everyone else does)
They told me they'd put 40K into a holding account from my old account (they hadn't).
Now over a month later I'm still waiting for the 40k to be transferred into my new account.
I'm looking forward to getting to town this week so I can get into my bank & cancel the 40k transfer.
Then I'll nip into the nearest bank offering a 3% rate and write out an old fashioned cheque.
I've lost 100 odd pounds in interest & it's taken 3 phone calls to get the first apology off them.

I'll never trust or go near the PO Saving accounts again - you have been warned folks!
Stay clear of the Post Office - it's their lack of interest and BSing that makes me angry.

Cheers everyone & good luck with your best rate hunting - Seumus