ISA transfer times

TediousPhoenix

How long is everyone's ISA transfers taking?

I handed in my transfer form to HSBC branch to move my 28.5k to their 2.75% cash ISA from Investec on 28th February.

But here we are on the 3rd April and it still hasn't been moved. I'm really quite annoyed because since the structured cash ISA matured on the 28th February it is earning 0% interest.

I called HSBC yesterday to talk to someone. They put me on hold for ages whilst they spoke to someone else. When they got back to me they said I will receive a letter in 3-5 days, but they couldn't tell me what was in the letter because they didn't have security clearance to access details of my account. Really? How is this a telephone helpline service? I still don't know what is causing the delay.

I'm really not impressed with HSBC. Before my ISA monies have even been transferred they have cut the rate from 2.75 to 1.7% - I only found out when I looked online (I know it's a variable rate, but it's still wrong to advertise a headline rate and then once people have opened accounts drop it so dramatically).

Also, in their letter confirming my transfer they missed a digit off the Investec account number in the reference at the top of the letter (only place it was on the letter). I called their 'help' centre, spent 8 minutes talking to someone who didn't know what I was querying, who just hung up on me. So I had to go into a branch to speak to someone, who advised that the error was just on the reference line, not the actual account number. But the time it's taking, it's making me wonder if they had it wrong as an account number - not just mis-typing it in the reference - all along.

So after all of this, as soon as my monies hit HSBC it will be transferred out.

(I just can't understand how I'm a First Direct customer too but their customer support people are really good - they actually answer your questions. How can they be the same company and yet HSBC think that the HSBC support model works? It doesn't.)

badger09

Thankfully, these horror stories are becoming less frequent, but there's always room for human error .

Many ISAs are transferred within a matter of days, so you've been very unlucky. However, HSBC should at least compensate you for lost interest.

I would send a formal written complaint by recorded delivery, or hand in at branch and ask for a receipt (check their complaints procedure on their website).

Good luck and please update here.

xylophone

human error

Indeed .... a relative had an ISA (£xx,xxx) with provider A. (Instant access, good rate until later this year)

He decided that he would like to put £x,xxx into a fixed rate account with provider B - he completed provider B's transfer form and specified the desired amount - however, provider B subsequently wrote to inform him that his ISA account with A had been transferred to B!
Relative checks on line - yes, you've guessed it, the whole £xx,xxx had been transferred to B and the account with A closed!

To be fair to both providers (the mistake occurred at B's end), the matter is being rectified and the old account reinstated less the desired amount to B.

B has offered an apology and compensation for inconvenience...

evenasus

I recently transferred from Nationwide to Santander - it took two days! Must be a record.

phona

My transfer to Santander was all done within a week. That's application, transfer paperwork, the transfer itself, to showing the balance correctly.
I guess I was lucky though, and any system - particularly involving multiple institutions - can be subject to random failures now and again.

I think I read somewhere that the aim is for ISA transfers to take less than 15 days. Is this just a target or in some way legal? Or am I making it up entirely?

OP, good luck with getting it resolved and best of luck with your next transfer

anoncol

phona wrote: »

I think I read somewhere that the aim is for ISA transfers to take less than 15 days. Is this just a target or in some way legal? Or am I making it up entirely?

I'm sure i read that is now the legal obligation that came in last year.

innovate

ISA transfer timeline overview: http://www.bba.org.uk/download/6330

The important bit is footnote 4 - you should get uninterrupted interest from either your old or new provider, and the new provider must pay you interest from (working) day 16 onwards regardless.

Most ISA seem to transfer quite fast these days.

johnmoney05

I had the same problem. I opened the fixed ISA with Halifax, sent the form on 11 Mar to transfer out my whole lot ISA from NatWest.

My money was out from NatWest on 18 Mar, then back again on 19 Mar. I have no idea what is happening. But I have made complaints to Halifax and NatWest.

Halifax compensated me £10! They told me, the interest would start calculating from 14 Mar anyway, so I would receive the interest from TWO banks...and they said to me that they couldn't see any loss on my part!! And NatWest still didn't reply!

4 April, still nothing happens! But I don't really care so long as I will get the right interest!