Bank wrongly reinvests savings

Mapleroad

Hello, I wonder if anybody could help? My son inherited some money from his grandfather and I helped him put it into a Yorkshire Bank 5 year fixed interest savings account. Close to the due date we set up an ISA account (for his 2014/15 ISA allowance) and another short fixed term saving account. My son filled in the form he was sent by Yorkshire just before the due date of the 5 year savings account, with details of the two accounts to which he wanted the savings to be transferred. Yorkshire did not act on this and put the whole some including interest into a very low fixed rate interest account for another 5 years! When we queried this, Yorkshire claimed that they had not received the reinvestment/transfer instructions form and that we could only get the money back if we were prepared to pay 5 years’ interest on the sum newly invested by them. My son has now finished at University and the plan was for him to use part of the saved inheritance for a deposit towards a flat. He would like his money returned. Is Yorkshire really allowed to reinvest savings on the same terms (i.e. 5 years and at a low rate), although my son had sent them instructions to transfer the money to other accounts (he has not kept a copy of the form, but we have documentation of the alternative accounts he had set up). At the very least we would have expected Yorkshire to send him a letter, asking him to sign the new arrangement. Is there anything we can do to get the money back in full? THANKS for any guidance

molerat

I was under the impression that they could not roll you over in to another fixed term with penalties without express permission. I would send a written complaint.

dunstonh

Is Yorkshire really allowed to reinvest savings on the same terms

If a rollover instruction exists, then yes it can. If no instruction exists, then no they cant.

Is there anything we can do to get the money back in full?

If the customer services team are not willing to undo the product then put in a complaint. You typically find the complaints teams can do things that the customer services staff cant.

Mapleroad

I will write to the complaints team.