Dot ComUnity Credit Union - ISA

Ed-1

darren72 wrote: »

I've had a reply from them stating:

"Yes - we will start the interest period from the date the cheque was issued by your previous provider"

Archi_Bald wrote: »

I think they are making up their rules as they go. I was told "When the monies are deposited on to your account they will be back dated to the date we received the cheques"

They have - in the last couple of days - decided to adopt the policy suggested in the guidelines, partly as a result of me challenging them on the issue. Full response I received is copied below:

Thank you for your recent e mails relating to the subject of when interest is paid from by the receiving ISA organisation.

As promised the matter has been put to the Credit Union. Having considered your comments and after careful consideration of the intent and reason for the best practice guidelines relating to ISA Transfers – I can confirm that with effect from the new Tax Year – 6th April 2014, the Credit Unions policy is that we will start the interest payment on ISA Transfers – where the Transfer is the starting point of an ISA – to the date of the cheque issued by the previous provider.

We thank you for your comments and trust you will be happy with the outcome.

darren72

Does that mean that the transfer should show as being deposited on that date on the online account ? - because it doesn't for me....

Ed-1

darren72 wrote: »

Does that mean that the transfer should show as being deposited on that date on the online account ? - because it doesn't for me....

It doesn't for me either, but then again it never has in any other ISA transfers I've done with other banks. If their system is like banks, they should be able to adjust the interest start date and to do this there is no need to adjust the date the cheque was credited. Time will tell (my interest is due to be paid on 5th May 2015).

darren72

Ed-1 wrote: »

It doesn't for me either, but then again it never has in any other ISA transfers I've done with other banks. If their system is like banks, they should be able to adjust the interest start date and to do this there is no need to adjust the date the cheque was credited.

Thanks - It just makes it very difficult to see whether this has actually been applied (until this time next year!)...

Ed-1

darren72 wrote: »

Thanks - It just makes it very difficult to see whether this has actually been applied (until this time next year!)...

Yep, time will tell. We can only assume it has been applied for all ISA transfers in the new tax year until we find out for sure next year.

hgt

One issue I found with most of the Word documents from DCU is they sometimes have the wrong file extension on them (.doc instead of .docx). So if having problems, maybe try changing the file extension to .docx - that worked for me.

Archi_Bald

Ed-1 wrote: »

....the Credit Unions policy is that we will start the interest payment on ISA Transfers – where the Transfer is the starting point of an ISA – to the date of the cheque issued by the previous provider.

I wonder what the policy is when the transfer isn't the starting point of the ISA. I am about to find out. Or so I hope, at least - been waiting for my transfer that left the old provider on Monday to show up at DCU, to top up my existing balance with them.

Ed-1

Archi_Bald wrote: »

I wonder what the policy is when the transfer isn't the starting point of the ISA. I am about to find out. Or so I hope, at least - been waiting for my transfer that left the old provider on Monday to show up at DCU, to top up my existing balance with them.

I queried this and they confirmed that interest will be backdated to the date on the cheque on all future transfers too (not just one that opens the ISA).

Archi_Bald

I was assured by email that DCU will pay interest from the day after the money left the old provider, but the date the money got credited to my account is a week later.

They are saying they will add the extra days interest by a special process when they calculate the interest. It will be fun to confirm that when the interest does get paid since I have amounts credited at various dates.

Overall I am very pleased with them, though. I am particularly impressed by DCU's responsiveness - all email inquiries are being responded to within hours.

MRMX9

Just an update but this credit union is also releasing some new longer term fixed rate cash ISAs from 1 July.

The 3% one year fixed rate remains available – but they are also launching a 3.25% 3 year rate (1% higher than the current best buy from the Nationwide) and a 3.5% 5 year rate which is 0.75% higher than the Leeds best buy account (which doesn’t accept transfers).

The 5 year fixed rate has a penalty of one years interest if you withdraw before the end of the term and the 3 year rate 240 days.

http://www.dotcu.org.uk/creditunion/savings/isa.html