First Direct (+ HSBC + M&S) Regular Saver Renewals

clivep

On 15th June last year our M&S Regular Savers matured and the balance inc. interest was paid into our current a/cs on that day. On the same day the new ones were applied for online and due to the weekend took until the 19th to get set up so no great problem.


On 5th February this year our HSBC Regular Savers matured and the interest was added. Contrary to the email notification info, the account was fully visible online and the total could be transferred to our current a/c. However, the account was still showing as a Regular Saver rather than having been converted to a Flexible Saver. I was unable to open a new Regular Saver online as it said I already had one. Apparently it can take up to a week for the conversion to happen despite HSBC info stating you should be able to open a new Regular Saver on the date of maturity of the old one. The next day the old Regular Saver was still showing and having read a previous MSE post saying this could be sorted over the phone I telephone HSBC only to be told that I had to wait a week or so until the account was converted. I insisted that I knew the new Regular Saver could be set up by phone and he reluctantly put me through to another department for new accounts who were most helpful and we got our new a/cs set up. The phone call was over an hour as all the t's & c's had to be read to me and then again for my wife. The new Regular Savers were set up immediately and for the next few days our online a/cs were showing 2 x Regular Savers each.


Our First Direct Regular Savers mature on 20th April. These operate the same as the HSBC ones. Following advice from an old MSE post I've already set up Savings Accounts so that on the Regular Savers maturity date the funds should get transferred straight away rather than having to wait for conversion. Presumably the Regular Saver a/cs should get closed at this point allowing new Regular Savers to be opened immediately.


The only problem I can see is that 20th April this year is a Saturday. Does anyone know if the interest will get added, the balance transferred to the Savings Account and the Regular Saver closed on a weekend or will it all wait until the next working day (i.e. Tuesday 23rd as it's Easter weekend)?


I'd really like to get it sorted on 20th as we're off abroad on holiday on 22nd. If necessary I'll try ringing them on the 20th but would prefer not to waste another hour on the phone.

youngretired

It allowed us to open our new regular savers on the day of maturity, but this year we couldn't move the funds out of the regular savers even though the interest was showing. We had to wait for it to be moved into the savings account before we could touch it, which was the following day.

clivep

youngretired wrote: »

It allowed us to open our new regular savers on the day of maturity, but this year we couldn't move the funds out of the regular savers even though the interest was showing. We had to wait for it to be moved into the savings account before we could touch it, which was the following day.

Pretty much my experience as well despite being over the bank holiday weekend. As per the letter they sent a fortnight ago, the interest was added yesterday (Saturday, the maturity date) and the balance transferred to the Savings Account today (Sunday, the next day after maturity).


It was not possible to transfer the money out of the Regular Saver yesterday using online banking so I left it until today to access the funds from the Savings Account. It may have been possible to use telephone banking to access the money yesterday if necessary but I just waited the extra day.


Setting up the Savings Account in advance worked well in preventing the delay of up to 5 days to convert the Regular Saver to a Savings Account.


Their letter also said that if a new Regular Saver is wanted then you need to wait until the old one is closed. The Regular Saver is still shown (with a zero balance) in online banking but I found that yesterday I was able to apply for (but not open) the new one. It stated that it would be opened within 3 working days. We probably could have opened them straight away by phoning like I did for HSBC but didn't fancy wasting another hour on the phone.

triplea35

With greatest respect you are talking about a loss of interest in pennies. Time taken in phone calls and postings on here are surely not cost effective in anyone's book.
We have FD regular savers, when they mature and I reopen a new account, even if it takes 5 days, that is the loss of opportunity to earn 20p interest on the maximum permitted contribution.

vermania

triplea35 wrote: »

With greatest respect you are talking about a loss of interest in pennies. Time taken in phone calls and postings on here are surely not cost effective in anyone's book.
We have FD regular savers, when they mature and I reopen a new account, even if it takes 5 days, that is the loss of opportunity to earn 20p interest on the maximum permitted contribution.

I find as time goes on, it's more the inconvenience of the dates drifting than the lost interest. If you have a few regular savers it's easier to have them go on the same certain dates of the month. It'd be helpful not to have the drift or for the HSBC Group banks to restart the monthly payment cycle on the first day of the month.

badger09

vermania wrote: »

I find as time goes on, it's more the inconvenience of the dates drifting than the lost interest. If you have a few regular savers it's easier to have them go on the same certain dates of the month. It'd be helpful not to have the drift or for the HSBC Group banks to restart the monthly payment cycle on the first day of the month.

Agreed. My M&S Monthly Saver has now 'drifted' to 31st

Means I can't update my spreadsheet as early as I would like:(

clivep

vermania wrote: »

I find as time goes on, it's more the inconvenience of the dates drifting than the lost interest. If you have a few regular savers it's easier to have them go on the same certain dates of the month. It'd be helpful not to have the drift or for the HSBC Group banks to restart the monthly payment cycle on the first day of the month.

Exactly. It's the inconvenience of the drift rather than loss of interest.

The new ones got opened on Tuesday 23rd April, the first working day after the Easter weekend so not too much of a delay. Funding is coming from BOS and it's easy enough to change the SO date (unlike M&S where you can't just change an SO date but instead have to cancel the old SO & set up a new one).