Intermediary banks & Paragon Bank

scattersong

Hi all, quick question – do you know any banks that do not use an intermediary bank to send a payment?

The problem is I’ve opened up a Paragon Bank savings account, which only accepts deposits/withdrawals from a nominated bank account.

I used my Metro Bank current account to deposit £1 (via Faster Payment).

The problem is that Paragon rejected this deposit since Metro uses Barclays as an intermediary bank when sending payments.
(Had to ring Metro, since my online banking says of course that Metro sent directly to Paragon)

So basically, the deposit was sent Metro > Barclays > Paragon.

When I sent payments to other accounts (I also have a Kent Reliance savings account which also requires a nominated bank account) it worked no problem. Kent Reliance still saw my Metro account number etc.

However Paragon are refusing to accept the payment since they insist it doesn’t come from my nominated account.
They don't seem to be able to see my account number/sort code, only that of the intermediary bank.

So any accounts that don’t use an intermediary?
(Preferably don't want to use Barclays) Maybe Natwest?

Has anyone else had a problem like this?

grumbler

What's 'Paragon Bank'? If it's in UK, I don't see why an intermediary bank gets involved that normally happens for international transfers only.

If this is really the case, is it not obvious that Barclays won't use any intermediary if you have/open an account with them.

Chino

scattersong wrote: »

So any accounts that don’t use an intermediary?

I don't know, but any account offered by a direct member of the Faster Payments Scheme perhaps?

http://www.fasterpayments.org.uk/membership/access-options/direct-membership/current-members

scattersong

grumbler wrote: »

What's 'Paragon Bank'? If it's in UK, I don't see why an intermediary bank gets involved that normally happens for international transfers only.

If this is really the case, is it not obvious that Barclays won't use any intermediary if you have/open an account with them.

Yup is the UK. Guess this is what Chino means, since Metro Bank must use FP through another provider.
Strange nonetheless.

Chino wrote: »

I don't know, but any account offered by a direct member of the Faster Payments Scheme perhaps?

http://www.fasterpayments.org.uk/membership/access-options/direct-membership/current-members

I guess that makes sense, annoying but must be why, thanks

nem0501

I opened an Easy Access Savings Account with Paragon Bank last week, enticed by the reasonably good interest rate. That all went fine.

It does require a nominated bank which I have used before on a Virgin Savings Account so I thought nothing of it. I decided to use a joint account as the nominated account - the same one I use for Virgin - thinking all would be well. When my initial deposit was "rejected" I obviously queried it as I knew 100% that I had quoted all the correct account details.

It appears that Paragon Bank only pick up part of the joint account name and my name was the missing part. They "referred" the payment and did eventually credit it to my account. BUT what happens next time and the next?

I have reluctantly decided to change the nominated account but even that is a real faff. You have to fill out a form and get an original, or certified copy, of a bank statement for the new nominated account dated within the last 3 months. You then post all that off to them. Now I do online banking and no longer get original statements, so that was another call I had to make to arrange for an original to be sent to me.

All in all not terribly impressed and feel that they should provide a fuller explanation of how the account works and what exactly is needed. It feels like it is not quite in the 21st century!

Chino

Have you considered sending Paragon Bank a cheque drawn on your nominated account?

However, perhaps you should consider this bank's rejection of your Faster Payments deposit a lucky escape. Your experience may be indicative of other operational deficiencies at this bank.

nem0501

I had thought of a cheque but then want to make regular monthly payments in to the account by standing order. Fortunately, I only sent through £5.00 initially and will do so again when the nominated account details are changed. Until I am satisfied they are not getting the £100s or £1000s.

Ifts

I sent Paragon Bank a cheque drawn from my nominated account but mine was for a one off deposit paid into a fixed rate savings bond.

edit: If its just an Easy Access Savings Account you're after maybe try another provider like Birmingham Midshires Savings - they offer 1.60% on their easy access savings account (inc 1.10% bonus for 12 months) - and it accepts faster payments from any account that offers FP's, it doesn't have to come from your linked account.

jonesMUFCforever

If you are having problems depositing money to their accounts I dread to think how you would make a withdrawal.

agrinnall

scattersong wrote: »

However Paragon are refusing to accept the payment since they insist it doesn’t come from my nominated account.
They don't seem to be able to see my account number/sort code, only that of the intermediary bank.

If this is really true then I think they must have a faulty implementation of FPS, I'm not an expert on the use of intermediaries but I'm pretty close to 100% certain that the sortcode and account number of the sending account must be present in the message that Paragon receive. It's possible that it's in a different field to a message sent directly from a FPS member bank but they should be in a position to understand that.

It's a pity as their 1.46% Easy Access account looks quite good, but it's not worth the risk if they can't get the basics right.

scattersong

Ifts wrote: »

If its just an Easy Access Savings Account you're after maybe try another provider like Birmingham Midshires Savings - they offer 1.60% on their easy access savings account (inc 1.10% bonus for 12 months) - and it accepts faster payments from any account that offers FP's, it doesn't have to come from your linked account.

Thanks, I'll take a look!

jonesMUFCforever wrote: »

If you are having problems depositing money to their accounts I dread to think how you would make a withdrawal.

Very true, think I'm gonna just ring up and close the account. Not worth the trouble to be honest.

agrinnall wrote: »

If this is really true then I think they must have a faulty implementation of FPS, I'm not an expert on the use of intermediaries but I'm pretty close to 100% certain that the sortcode and account number of the sending account must be present in the message that Paragon receive. It's possible that it's in a different field to a message sent directly from a FPS member bank but they should be in a position to understand that.

Strange though considering other 'nominated' bank accounts i.e with Kent Reliance don't seem to have this problem. It just seems to be them. The deposit I made bounced back to my account ok, so Paragon must have some sort of details from me!

Chino wrote: »

Have you considered sending Paragon Bank a cheque drawn on your nominated account?

Haha, that would be too easy! They only accept the first deposit by cheque....after that you have to use the nominated account.