Derbyshire Building Society

KingKenny

http://www.thederbyshire.co.uk/savings/longer_term/1_year_fixed_rate_bond.aspx?ekmensel=2152299f_175_197_3345_1

Looks good, but beware.

1) They do not pay interest on BACS payments into this account until the day after it is recieved into your account, i.e. the fourth working day!

2) They do not pay interest on CHAPS payments into this account until the day after it is recieved into your account, i.e. the second working day!

3) On maturity, they do not allow CHAPS payments to withdraw your funds, you can only make, a cash, cheque, or BACS withdrawal.

It would be a good thing to have a thread where it outlines all of the banks and building society rules on CHAPS and BACS, as it seems to differ so much and could cost you a considerable amount of money in lost interest, should you not be aware prior to opening an account.

bristolleedsfan

KingKenny wrote: »

http://www.thederbyshire.co.uk/savings/longer_term/1_year_fixed_rate_bond.aspx?ekmensel=2152299f_175_197_3345_1

Looks good, but beware.

1) They do not pay interest on BACS payments into this account until the day after it is recieved into your account, i.e. the fourth working day!

2) They do not pay interest on CHAPS payments into this account until the day after it is recieved into your account, i.e. the second working day!

3) On maturity, they do not allow CHAPS payments to withdraw your funds, you can only make, a cash, cheque, or BACS withdrawal.

It would be a good thing to have a thread where it outlines all of the banks and building society rules on CHAPS and BACS, as it seems to differ so much and could cost you a considerable amount of money in lost interest, should you not be aware prior to opening an account.

sadly a lot of building societies behave in the same way, even on cash deposits nationwide as an example doesnt pay interest until the day following cash deposit, cheque deposit, interest from third working day following cheque deposit so i imagine BACS receipts to nationwide will be same ie day following receipt,

its something im particularly miffed about esp when it involves withdrawal from 1 building society 2 another, building society branches wont do BACS transaction so they give u a building society cheque which they retain interest on for several days ( even more days if the cheque is then sent by post to another building society)

ED

I too am disappointed re CASH deposits earning nil interest till next day. Nationwide Bdg Soc, etc, have no excuse for this.

Staff training at numerous banks and building societies frequently fails to equip counter staff with knowledge to correctly answer the common question of customers, ''Will my cash deposit earn interest starting today?'' In my experience, Lloyds TSB is one of the few institutions who (a) can truly say Yes; and (b) equip staff with this knowledge.

Same-day (free) BACS transfers - if implemented for all/most UK banks, etc, c. November 2007 - may encourage many more people to cease over-the-counter cash deposits. However, I guess the current activity keeps more bank/BS staff employed within the UK.

bristolleedsfan

ED wrote: »

I too am disappointed re CASH deposits earning nil interest till next day. Nationwide Bdg Soc, etc, have no excuse for this.


Same-day (free) BACS transfers - if implemented for all/most UK banks, etc, c. November 2007 - may encourage many more people to cease over-the-counter cash deposits. However, I guess the current activity keeps more bank/BS staff employed within the UK.

free same day BACS transfers is that a definate introduction from after nov 2007, would be good if it is being introduced :j

KingKenny

I really do believe that this is a very important point.

Institutions vary some good some bad regarding BACS and CHAPS transfers, because at the end of the day, it costs you money!

It would be nice to collect the data regarding the best and the worst?

Any thoughts?


http://www.realbusiness.co.uk/ARTICLE/UNSPUN-What-are-the-banks-waiting-for/1175.aspx


Anyone know how the Birmingham Midshires operates regarding the three points above???

http://www.askbm.co.uk/savings/t/fixed/intro.asp

bristolleedsfan

KingKenny wrote: »

I really do believe that this is a very important point.

Institutions vary some good some bad regarding BACS and CHAPS transfers, because at the end of the day, it costs you money!

It would be nice to collect the data regarding the best and the worst?

Any thoughts?

]

we agree, our thoughts are u collect the data and post it and we will thank you for a usefull post

KingKenny

bristolleedsfan wrote: »

we agree, our thoughts are u collect the data and post it and we will thank you for a usefull post

Oky Doky?:eek:

Milarky

bristolleedsfan wrote: »

sadly a lot of building societies behave in the same way, even on cash deposits nationwide as an example doesnt pay interest until the day following cash deposit, cheque deposit, interest from third working day following cheque deposit so i imagine BACS receipts to nationwide will be same ie day following receipt,

I always used to act on the assumption that you got interest from the second day (i.e. the first complete day) on cash deposits but then also got paid interest for the date of withdrawal - in other words interest was paid for the exact number of days - and that all building societies followed the same practice. Now this was back in the [19]70's I'm talking about. There should have been complete standardization for all that time. So we really should be getting just one answer on this question from all our banks today re. interest.

Jake'sGran

I stopped acting on assumptions a long time ago when it comes to banks and building societies and have received a few 'apology' payments in my time. But what I wanted to say is that I understood the Government is looking into - and going to do something about - the way these institutions hang on to our money when we all know transfers happen very quickly in the banking system.

Milarky

Jake'sGran wrote: »

I understood the Government is looking into - and going to do something about - the way these institutions hang on to our money when we all know transfers happen very quickly in the banking system.

Yes they were going to 'do something' about that. But in typical fashion they ended up giving control of the OFT investigation to a an industry-run panel. This is sadly how too many 'reforms' (eg pensions, workplace rights) are conducted. The result is always a compromise which those powerful groups in society find conducive to them - but then looks a bit threadbare to the public. They implied they would sort out cheque clearing as part of the process which has now concluded (under the title 'Faster Payments'). Here's Andrew ("Our air's not for sale [oh yes it is]!") Smith MP (speaking as Treasury Secretary) in December 2000:

There will be no hiding place for anyone seeking to take advantage of customers dependent on them to carry out essential daily banking transactions such as drawing cash, cashing cheques, transferring money or using standing orders and direct debits to pay bills

Seven years after those foolishly rash words (they used to believe thus guff themselves) we will get faster BACS payments - which could have been speeded up at any time during the interim really - but cheques will not clear any faster and you will still have to wait 2 working days (eg Mon to Wed) for interest and 4 working days (actually one day longer than is standard today!) for 'cleared' funds

Yes, we were robbed on the 'reform' of cheques - and it is cheques, I believe, which was a longer source of discontent from the public than electronic payments. After all, when paying a bill you don't usually worry about when that payment arrives whereas when being paid by cheque (your choice?) the issuer knows they can keep your money for longer (that 'hiding place' still hasn't been removed)

ED

KingKenny wrote: »

Institutions vary some good some bad regarding BACS [...] It would be nice to collect the data regarding the best and the worst?

I too am looking forward to future results of your 'survey', KingKenny.