Payments into Icesave

moonrakerz

I have an account with Icesave and have always thought that their method of putting money into the account by DD a little strange - but what the hell, it's their bank !

I am in the process of selling my house and I want to put the proceeds of the sale into my Icesave account while I decide what to do with it on a longer term basis.

As it appears to stand, my solicitor would have to pay the money to my Current Acc (with FD), then I would have to arrange a DD to get the money to Icesave.
8 - 10 days, lot of interest down the drain.

I rang Icesave yesterday and asked if there is a quicker way to do this, and surprise, surprise ! as I, and others on this site, have suspected, you CAN pay in money to your Icesave account, by normal BACS/CHAPS transfer !

oldfella

a deposit leaving your current account by DD arrives at Icesave the same day - no interest lost

masonic

It depends on the rate of interest paid by your current account, oldfella, but some would be better off getting their money in as fast as possible. Doing one BACS/CHAPS transfer verses one BACS/CHAPS then a second transfer by dd is likely to benefit most people as long as Landsbanki don't mind money coming in from non-linked accounts.

moonrakerz

oldfella wrote: »

a deposit leaving your current account by DD arrives at Icesave the same day - no interest lost

True ! but there is about a four day lag from when you request the DD, to when it happens. that is why on the web site there is a facility to look at "future transactions".

Unless of course, they know what you are going to do before you do !

Sillychuckie

but there would also be a 4 day lag if you did it with BACS, as the money drifts around the BACS systems before reaching ICESAVE.
You haven't thought this through.

Whichever way you look at it, the best option (in terms of losing less interest) is direct debit.
You'll be getting a poor rate whilst you wait the 4 days for the money to leave your current account, but at least you get SOMETHING.
A poor rate is better than no rate... and 0% is what you would get whilst you wait for it to arrive in ICESAVE if you do it with BACS.

tom188

unless its a VERY large amount, then the best way is CHAPS.

lucy_lashes

moonrakerz wrote: »

I have an account with Icesave and have always thought that their method of putting money into the account by DD a little strange - but what the hell, it's their bank !

I am in the process of selling my house and I want to put the proceeds of the sale into my Icesave account while I decide what to do with it on a longer term basis.

As it appears to stand, my solicitor would have to pay the money to my Current Acc (with FD), then I would have to arrange a DD to get the money to Icesave.
8 - 10 days, lot of interest down the drain.

I rang Icesave yesterday and asked if there is a quicker way to do this, and surprise, surprise ! as I, and others on this site, have suspected, you CAN pay in money to your Icesave account, by normal BACS/CHAPS transfer !

This is true, they can't turn your funds away unless you are a regular user of paying funds into and out of the account using BACS/CHAPS. T&C's of the account do say that the way the account is to be operated is by the DD facility, which takes 3/4 days.I've used CHAPS twice into the account due to the amount of the transfer. Never experienced any probs with the DD facility either. They still get two big thumbs up from me!!

oldfella

arrange the BACS transfer from the old savings account on the Monday, arrives at your bank on Weds, on the same Monday arrange the DD from bank to new savings account for the Thurs.

you could get interest for the Monday and the Thurs - net loss 2, maximum 3 days for the whole transfer.

Mike

nilrem_2

tom188 wrote: »

unless its a VERY large amount, then the best way is CHAPS.

Some institutions charge for this, I have been quoted around £30, so on smaller amounts the charges may nullify the extra interest gained by moving cash.

moonrakerz

Interesting comments !

As a result of what I was told by Icesave I will be transferring the proceeds of my house sale from my Solicitor to my Icesave account by CHAPS, the £30 fee for this is no problem.

If some countries can do BACS transfers almost instantaneously why can't we ? unless we pay £30 for CHAPS !!

YorkshireBoy

moonrakerz wrote: »

If some countries can do BACS transfers almost instantaneously why can't we ?

Apparently the mechanism is antiquated.

However, the good news is that things are improving with same/next day transfers due at the end of this year. Although there may be a charge, it is thought it will be in the order of pence rather than pounds as is the case with CHAPS now.

http://www.fastpayments.co.uk