MSE News: Cash Isa transfers slowly getting quicker

trying_2_b_good

Fellwalker wrote: »

Transfer in to NatWest of all old ISAs. Opened Sunday 15th April. Posted transfer forms 16th by first class post, should have arrived 17th.
Santander transfer in by Faster Payment on 24th so at most 5 working days. Excellent.
National Savings closed account 26th, no sign of funds, should arrive today at latest and be backdated.
Northern Rock (Virgin) - I rang for an update. They advise that they received the instruction on 24th (5 working days) and sent the cheque on 1st May (5 working days) so the maximum time scale has been achieved so far. Convenient for them as their follow on rate was very low.

Thanks for thread and answers! I was getting worried that my Northern Rock ISA was showing closed on 27/04/ but is still not in my new Santander ISA a week later. I now realise that it's because they'll have sent a cheque! So ridiculous! Lady in Santander didn't know that and I didn't have details on me to call Northern Rock.

Hopefully it will show in my account next week, but it is frustrating that I miss out on a week's interest.

Consumerist

trying_2_b_good wrote: »

. . . but it is frustrating that I miss out on a week's interest.

The new manager must pay interest from the date on the cheque (presumably the same date your old account was closed) so you shouldn't lose any interest at all.

trying_2_b_good

:beer:Thanks Consumerist

I'll see if I can figure out if that actually happens!

Lady from Santander just rang to tell me about the cheque system. Admitted that she didn't know before. Very good of her to call, didn't expect it from them!

DragonQ

Faster, eh? My Halifax ISA was closed 9 working days ago and Santander say they haven't received the cheque yet.

AirlieBird wrote: »

Yes, the electronic Cash ISA Transfer system, run by BACs, will go live from late October. All BACs scheme members, which account for 80% of Cash ISA Transfers, must be using it by January 2013. It will remove the need not just for cheques but also any paper forms to be exchanged between providers.

Why not Faster Payments?

Consumerist

DragonQ wrote: »

Why not Faster Payments

Perhaps because Faster Payments is designed to transfer only money whereas transferring ISAs requires some additional data to accompany it.

Consumerist

trying_2_b_good wrote: »

I'll see if I can figure out if that actually happens!

Keeping it simple - you should find that the date of the deposit in the new account is the same as the closing date of the old account.

innovate

trying_2_b_good wrote: »

Hopefully it will show in my account next week, but it is frustrating that I miss out on a week's interest.

You should not miss out on any interest. The industry standard is that the new provider will pay you interest from the day after the old provider stopped paying interest.

Now you might have to remind your new ISA provider of this.....in the case of Santander, it is likely that they will credit your money on the day the cheque cleared. They are supposed to backdate it to the day the money left the old provider but they had not done this in my case over 1 week after they had credited the money.

So I filed a written complaint with them and they credited me almost instantly with 5 days worth of interest - which was the correct number of days my money had been "in transit". What they did for me is not strictly in line with the industry standard but give or take a few pence I got all my money now, so I will probably not complain further now.

I suggest that everyone check that the credit date for their transferred ISA is no later than the day (calender, not working) their money left their old provider (i.e. their old provider closed their account). If it is, all is fine. If it is not, complain and ask that they correct your account in line with the industry standard.

innovate

DragonQ wrote: »

Faster, eh? My Halifax ISA was closed 9 working days ago and Santander say they haven't received the cheque yet.

9 working days sounds way too long.

It is Santander's responsibility to complete your transfer, so if I were you I'd chase them in writing for a written explantion as to where your money is.

ceejayblue

I'm chasing Natwest re my ING transfer into my new account. I was told it could take up to 21 days in one phone call! Now they are going to chase ING up for me.

DragonQ

innovate wrote: »

9 working days sounds way too long.

It is Santander's responsibility to complete your transfer, so if I were you I'd chase them in writing for a written explantion as to where your money is.

I called them earlier today and they said they hadn't received the cheque and that my ISA transfer had been "escalated" (not sure what that'll do if they have no physical cheque to work with...). They said if they don't receive it soon, they'll ask for Halifax to send them another one. I was also recommended to check up on their progress in 3-4 working days.

In theory I won't lose any interest since it should be backdated to when the Halifax ISA was closed but with Santander you never know...