Vanguard account requires debit card

RomfordNavy

I just tried to open a Vanguard General account. It states that you can fund the account by BACS, which is what I would expect. However it then directs you to a screen to enter debit card details and doesn't provide any way to continue without it! I don't have a suitable debit card.



Anyone else seen this is is it just a system failure tonight?

Murmansk

I vaguely seem to remember I've come across this before and it's because even though you are going to fund the account via BACS they want your debit card details as part of the process of satisfying themselves of your identity and that the account from which you'll be funding it is in your name. Perhaps it's to do with the anti money laundering laws.

I guess in most cases BACS payments into the account would be from a current account and most current accounts would be expected to have a debit card associated with them.

Alexland

Vanguard policy requires the first investment to be made by debit card or platform transfer.

https://www.vanguardinvestor.co.uk/need-help/answer/how-do-i-start-investing

Alex

RomfordNavy

The vanguard situation regarding paying funds in:
First payment _must_ be made by Debit card, no BACS allowed
Subsequent payments may be made by BACS but only if >£50k

I was originally intending to put £50k with them but due to these restrictions have now decided to lower that to £10k. Even transfering that via debit card has been a nightmare, multiple phone calls to my bank still resulted in numerous attempts before the payment finally cleared.

Personally I think this is a very bad decision by Vanguard to restrict BACS receipt like this. Although it is technically possible, Debit cards are not designed for making large payments, that is what BACS transfers are for.

PRAISETHESUN

I don't suppose there is nothing stopping you making your "first" deposit of £1 by debit card, then immediately following it up with a BACS transfer?

bowlhead99

RomfordNavy wrote: »

The vanguard situation regarding paying funds in:
First payment _must_ be made by Debit card, no BACS allowed
Subsequent payments may be made by BACS but only if >£50k

I was originally intending to put £50k with them but due to these restrictions have now decided to lower that to £10k. Even transfering that via debit card has been a nightmare, multiple phone calls to my bank still resulted in numerous attempts before the payment finally cleared.

Personally I think this is a very bad decision by Vanguard to restrict BACS receipt like this. Although it is technically possible, Debit cards are not designed for making large payments, that is what BACS transfers are for.

From what you are saying, based on those restrictions, you could give them a pound by debit card and then give them your £50k via BACS. But because of the restrictions you're now going to invest £10k, by debit card...

I get that you're frustrated with the process, but from the perspective of a third party reading it, that doesn't make a whole lot of sense

I suppose now you have a functioning account with £10k with them you could withdraw all but a few quid and then transfer them back another £50k -but I expect they would have some questions about what you were playing at.

Iain_For

I've not had any problems using a debit card to make large payments to Vanguard or NS&I for that matter. Advantage would seem to be less chance of getting a sort code or account number wrong.

RomfordNavy

PRAISETHESUN wrote: »

I don't suppose there is nothing stopping you making your "first" deposit of £1 by debit card, then immediately following it up with a BACS transfer?

Yes there is, first deposit must be at least £500 and then BACS transfer must be over £50k.

RomfordNavy

bowlhead99 wrote: »

From what you are saying, based on those restrictions, you could give them a pound by debit card and then give them your £50k via BACS. But because of the restrictions you're now going to invest £10k, by debit card...

I get that you're frustrated with the process, but from the perspective of a third party reading it, that doesn't make a whole lot of sense

I suppose now you have a functioning account with £10k with them you could withdraw all but a few quid and then transfer them back another £50k -but I expect they would have some questions about what you were playing at.

Minimum initial payment is £500. I agree that what I could have done was to deposit £500 by debit card, then deposited £50k by BACS, then transfered the unwanted £500 back by BACS. However I suspect I might have encountered more problems as the £500 would have been from a different bank account to the £50k.

Seems strange that they allow outgoing payments by BACS but make it difficult for incoming payments.