Halifax share dealing 3 days to transfer.

Londonlisa12

I sold a relatively large amount of shares last week from my Halifax share dealing account.

I find it totally unacceptable that they take 3 working days after settlement date to transfer
funds to my bank.

I can transfer electronically instantly between different bank accounts,how can't they?

Lokolo

Do you feel better now?

isasmurf

Londonlisa12 wrote: »

I sold a relatively large amount of shares last week from my Halifax share dealing account.

I find it totally unacceptable that they take 3 working days after settlement date to transfer
funds to my bank.

I can transfer electronically instantly between different bank accounts,how can't they?

Because they are not part of the faster payments system. Share dealing funds are paid via BACS.

Londonlisa12

Lokolo

Yes,because isasmurf gave me the reason why

If you have nothing to contribute please keep quiet.

geoffken

f the interest was to be more than £25 you should have arranged Chaps for instant transfer.
if 3 days interest is more than a first class stamp the write and comment.
I find Halifax great for share dealing with no monthly charges and reasonable pricing

bowlhead99

Londonlisa12 wrote: »

I sold a relatively large amount of shares last week from my Halifax share dealing account.

I find it totally unacceptable that they take 3 working days after settlement date to transfer
funds to my bank.

I can transfer electronically instantly between different bank accounts,how can't they?

Perhaps the service you use is limited in the quantity or total value of payments you can make same day for free.

Whereas Halifax have tens or hundreds of thousands of accounts with billions of pounds worth of assets under administration, and they do not want to incur large costs to pass on to the customers. So they choose to use a slower service.

Also, when you decide to make a payment you are happy to just click a button on your online banking, without first seeking approval from anyone, taking the risk of mistakes on your own head. Whereas with a regulated stockbroking business you would hope there would be checks and balances and controls.

I use TD Direct for my broking and if I want to access the proceeds from sale of "a relatively large amount of shares" I can have them sent to me same day as an urgent payment for a £25 fee (or £15 fee if the amount is under £100,000). I can also pay a premium fee for the money to be sent same day in USD , EUR or six other currencies. Alternatively I can wait and use the slower service for free.

If you wanted a premium service with additional options around trading and cash handling, you could have bought such a service. But you decided to go with the relatively cheap and cheerful no-frills service from a bank. So, don't get outraged at how the process works with that bank.

Of course, you can ping money around the UK from a bank personal current account for free at a moment's notice. But your Halifax share dealing account is not designed to be a personal current account and isn't in competition with current account services; it has a different primary purpose. So you should moderate your expectations.

chockydavid1983

Is it a similar issue with the time it takes to make trades?
I added an order on the evening of the 6th and only had it confirmed this morning.
I'm not particularly worried, just curious.

bowlhead99

chockydavid1983 wrote: »

Is it a similar issue with the time it takes to make trades?
I added an order on the evening of the 6th and only had it confirmed this morning.
I'm not particularly worried, just curious.

If it was an order to subscribe into or redeem out of an open ended fund, typically an order placed overnight will catch the cut-off for acceptance by the fund manager on the next working day (Friday in your case) and the accounting to calculate the Friday NAV which drives how many shares you get for your money will be performed on Friday/Monday depending on the time of day they've set the pricing point.

By end of day Monday, the Friday price for subscriptions/ redemptions can be published, letting Halifax know how many fractional shares/units are being subscribed by their various customers, and Halifax can then check and format a confirmation / contract note for you accordingly ,as well as arranging the cash settlement.

So, getting a finalised contract note on Tuesday (price and quantity) for an order you placed to hit the previous Friday's dealing point, is not unheard of for an open ended fund - though some platforms are faster than others ( both in terms of the initial lead-time you need to give them to catch the manager's dealing cut-off, and the time take to generate the final paperwork after the event once they've received all the data).

But that's for open-ended funds (OEICs, UTs, PAIFs etc). If it was an order for something traded during business hours on a stock exchange you would have expected Halifax to know when it had executed and at what price, on Friday (assuming your order didn't instruct them to wait for a specific price, in which case it could have taken several days).

pochisoldi

Londonlisa12 wrote: »

I sold a relatively large amount of shares last week from my Halifax share dealing account.

I find it totally unacceptable that they take 3 working days after settlement date to transfer
funds to my bank.

I can transfer electronically instantly between different bank accounts,how can't they?

<run dmc>It's like that, and that's the way it is</run dmc>

Either because they can't, or more likely because they don't want to.
It's always taken that amount of time to get cleared funds (in my case, residual monies after reinvesting dividends) from Halifax Sharedealing back to wherever I want it to be.

FWIW, they always send the money via BACS/Bank Giro, they never use Faster Payments.

PochiSoldi

[Deleted User]

Londonlisa12 wrote: »

I sold a relatively large amount of shares last week from my Halifax share dealing account.

I find it totally unacceptable that they take 3 working days after settlement date to transfer
funds to my bank.

I can transfer electronically instantly between different bank accounts,how can't they?

Contrary to common perception, BACS still exists for transfers between bank accounts. 3 days is the normal time for a transfer via BACS. In my experience stockbrokers continue to use BACS and so your case is not at all unusual. Take a look at Halifax T&Cs and you'll probably find it mentioned somewhere as well as an alternative option to pay extra for a faster CHAPS transfer.

Eco_Miser

Londonlisa12 wrote: »

I find it totally unacceptable that they take 3 working days after settlement date to transfer
funds to my bank.

You think that's bad? I recently sold units in a fund I've had for over 20 years, held directly with the manager. I had to

• phone them up to initiate the sale
• send them a signed confirmation to prove it was me,
• wait for them to send a cheque
• deposit the cheque in my bank
• wait four working days for the cheque to clear

before I could add the money to my S&S ISA almost instantaneously with my debit card online.
18 days in total.