NS&I to cut premium bond rate and other accounts

refluxer

wizdoc said:

What are others' experiences in terms of the time taken for income bond withdrawals to hit their bank accounts? According to the NS&I website, withdrawals up to including £50,000 should clear by the next working day, but this doesn't always seem to be the case in my experience. 

Where did you read it was next day, out of interest ? I was wanting to know this myself and according to the Income Bonds brochure, it could take as much as 5 days !

60. For telephone or internet applications to cash in, we will normally initiate the electronic transfer within three banking days of receiving instructions.

62. Once we have initiated the electronic transfer, the date of repayment, for the purposes of these terms and conditions, will be considered to be the date on which, in the normal course, the requested amount would be credited to the specified bank or building society account. In the case of BACS, this is normally two banking days after we initiate the transfer.

ffacoffipawb

refluxer said:

wizdoc said:

What are others' experiences in terms of the time taken for income bond withdrawals to hit their bank accounts? According to the NS&I website, withdrawals up to including £50,000 should clear by the next working day, but this doesn't always seem to be the case in my experience. 

Where did you read it was next day, out of interest ? I was wanting to know this myself and according to the Income Bonds brochure, it could take as much as 5 days !

60. For telephone or internet applications to cash in, we will normally initiate the electronic transfer within three banking days of receiving instructions.

62. Once we have initiated the electronic transfer, the date of repayment, for the purposes of these terms and conditions, will be considered to be the date on which, in the normal course, the requested amount would be credited to the specified bank or building society account. In the case of BACS, this is normally two banking days after we initiate the transfer.

I withdrew most of my NSI savings on line yesterday.

One was a faster payment which arrived in my bank this afternoon. Has already been withdrawn to Hargreaves Lansdown Active Savings (HLAS) via debit card and invested at 0.95% (6 months) and 1.30% (12 months).

The other payment, simikar amount, was sent by BACS (too much in total for NSI fast payment) and should arrive in my bank tomorrow as it is currently showing as a pending transaction in my bank's app. This will also be invested via HLAS.

t0rt0ise

It said next day earlier when I closed my account. We will see.

eskbanker

refluxer said:

wizdoc said:

What are others' experiences in terms of the time taken for income bond withdrawals to hit their bank accounts? According to the NS&I website, withdrawals up to including £50,000 should clear by the next working day, but this doesn't always seem to be the case in my experience. 

Where did you read it was next day, out of interest ? I was wanting to know this myself and according to the Income Bonds brochure, it could take as much as 5 days !

60. For telephone or internet applications to cash in, we will normally initiate the electronic transfer within three banking days of receiving instructions.

62. Once we have initiated the electronic transfer, the date of repayment, for the purposes of these terms and conditions, will be considered to be the date on which, in the normal course, the requested amount would be credited to the specified bank or building society account. In the case of BACS, this is normally two banking days after we initiate the transfer.

Where are you finding a published document with clause numbering like that?  They used to issue them in that format but the current brochure at https://www.nsandi.com/files/asset/pdf/income-bonds-brochure.pdf doesn't use that style and clearly includes:

How long it takes to receive your payment

The time it takes to receive your payment depends on which NS&I account you have, how much you want to withdraw and how you give us your withdrawal instruction. 

Payments out of Direct ISA, Direct Saver, Income Bonds, and Investment Account

Giving your instruction online or by phone 

The payment will normally reach your nominated account by the end of the first banking day after the day we receive your instruction. 

[later explains that larger payments take longer due to use of BACS]

Also consistent timescales are shown at https://www.nsandi.com/how-long-does-it-take-receive-withdrawal-payment

refluxer

@eskbanker Yes, it looks like the Income Bonds brochure I had downloaded is now out of date - thanks for the heads up 

Black_Cat2

Probably a stupid question but if you transfer out your savings from the Direct Saver then do you forfeit the interest you've earned? 

I-LOV-MONEY

Presumably there is no need to panic just yet.  You will still get your 1.16% on the Income Bonds until 24 November.  If you move your money now, then by that time, the other account will have also dropped their interest rates.   Wait until 23 November !!!!

eskbanker

Black_Cat2 said:

Probably a stupid question but if you transfer out your savings from the Direct Saver then do you forfeit the interest you've earned? 

No - if you close the account then the accrued interest will be added to the closing balance, but if you leave the account open then interest will be added on the scheduled date.

Black_Cat2

eskbanker said:

Black_Cat2 said:

Probably a stupid question but if you transfer out your savings from the Direct Saver then do you forfeit the interest you've earned? 

No - if you close the account then the accrued interest will be added to the closing balance, but if you leave the account open then interest will be added on the scheduled date.

Ty, sorry if I seem lazy in not looking it up myself, I do appreciate it 🐈

refluxer

I-LOV-MONEY said:

Presumably there is no need to panic just yet.  You will still get your 1.16% on the Income Bonds until 24 November.  If you move your money now, then by that time, the other account will have also dropped their interest rates.   Wait until 23 November !!!!

That's certainly likely to be true for those who need access to their money and are happy to settle for a variable rate but those who don't need access will be pulling money out of NS&I Income Bonds now and putting them into Fixed Rate accounts with comparable or better rates ASAP, for fear that these will also drop over the coming weeks/months.