Charter Savings Bank

Anrieta

Hi, I am interested in opening a new Cash ISA with Charter Savings Bank but when I have tried to transfer the funds to their account and entered their bank sort code the message appeared advising that it is a Barclays bank account. Is it a scam?

Ed-1

Anrieta wrote: »

Hi, I am interested in opening a new Cash ISA with Charter Savings Bank but when I have tried to transfer the funds to their account and entered their bank sort code the message appeared advising that it is a Barclays bank account. Is it a scam?

Barclays will be the clearing bank they use. The payment reference will identify your account to them, to which they will allocate it.

Anrieta

I did not realise that they can use another bank as a clearing bank. What does it exactly mean, a clearing bank?

Ed-1

Anrieta wrote: »

I did not realise that they can use another bank as a clearing bank. What does it exactly mean, a clearing bank?

Building societies aren't banks and therefore themselves need a bank account elsewhere (with a clearing bank) to be able to receive and send payments ('clearing'). They hold one central account with a bank which all customer payments go into and then they allocate the balance to a customer's name (which isn't a proper bank account, it's just a record of how much that customer holds with the company) using the payment reference.

Steve_xx

If you are worried that Charter Bank may be a scam, then I can allay your fears. They are absolutely legitimate. I've held various accounts with them over the years, and indeed I hold one currently.