NS&I customers struggle to withdraw savings due to 'technical issue' - MSE News

eskbanker

angelamancini said:

I requested a week ago to move my NS & I Isas over to another provider. They have closed my account with them and the new one has been opened with no funds transferred over as all being done by cheque apparently! I have set up a complaint what an antiquated system or way for them to benefit from everyones funds in transit!?

There's no denying that transfers enacted by cheque are antiquated but how would they benefit from that, when the account has been closed?  ISA transfers can normally take up to three weeks but many have been exceeding this in recent times, but your new provider should pay you interest from the date of the cheque, so you don't lose out as a result of transfer timescales, and so it's nothing to complain to NS&I about.

Thrugelmir

angelamancini said:

I requested a week ago to move my NS & I Isas over to another provider. They have closed my account with them and the new one has been opened with no funds transferred over as all being done by cheque apparently! I have set up a complaint what an antiquated system or way for them to benefit from everyones funds in transit!?

NSI is not a bank. Simplest and easiest way of effecting the transfer is indeed a cheque. Minimises fraud too, as Government departments are constantly targeted. 

wmb194

Thrugelmir said:

angelamancini said:

I requested a week ago to move my NS & I Isas over to another provider. They have closed my account with them and the new one has been opened with no funds transferred over as all being done by cheque apparently! I have set up a complaint what an antiquated system or way for them to benefit from everyones funds in transit!?

NSI is not a bank. Simplest and easiest way of effecting the transfer is indeed a cheque. Minimises fraud too, as Government departments are constantly targeted. 

No, more like NS&I's IT is garbage. I transferred an Isa from Halifax to Barclays and it was all done electonically and the transfer was completed two or three working days later.

Biggus_Dickus

refluxer said:

garmeg said:

Why not sharia? It is interest in all but name. Speaking as an infidel I have no problem with it.

I'm not that familiar with these types of bank accounts but I would suspect that, while they appear to have met their expected rates in the past (those recommended by MSE at least), these are also difficult and fairly unprecedented times so it's not too surprising that those cautious enough to want to avoid the stock market would also be thinking that the 'past performance...' disclaimer might also apply here and therefore want to avoid taking any kind of risk with their cash, however small ?

Looking at the MSE table for the top one-year fixed rates, a guaranteed 1.11% would look more attractive to many than a likely / probable 1.26% I would imagine and the difference, even if you were to max out your FSCS allowance, would be very small anyway.

.... £85k in the 1.26% account would generate a maximum of £127.50 more (Sharia profit).

refluxer

Biggus_Dickus said:

.... £85k in the 1.26% account would generate a maximum of £127.50 more (Sharia profit).

Absolutely. I guess I meant 'very small' in relation to the sum invested. Worthwhile perhaps to someone who can afford to put that amount in and take a small amount of risk, but I would imagine that the majority of people opening that type of account would have a lot less than that in it and so the return on that small risk just wouldn't be worth it.

Unfamiliarity with this type of account will play a big part too, which is certainly true in my case. Presumably those who have used them before will have the confidence that the expected rates will also be achieved in the future.

gt94sss2

angelamancini said:

I have set up a complaint what an antiquated system or way for them to benefit from everyones funds in transit!?

There is no point complaining. Most ISA transfers are done by cheque.
Some providers will backdate interest to the date of the cheque when they receive it.

eskbanker

gt94sss2 said:

angelamancini said:

I have set up a complaint what an antiquated system or way for them to benefit from everyones funds in transit!?

There is no point complaining. Most ISA transfers are done by cheque.
Some providers will backdate interest to the date of the cheque when they receive it.

I was under the impression that it was the other way round, i.e. some ISA transfers are done by cheque, and most providers will backdate interest to the cheque date....

Thrugelmir

wmb194 said:

Thrugelmir said:

angelamancini said:

I requested a week ago to move my NS & I Isas over to another provider. They have closed my account with them and the new one has been opened with no funds transferred over as all being done by cheque apparently! I have set up a complaint what an antiquated system or way for them to benefit from everyones funds in transit!?

NSI is not a bank. Simplest and easiest way of effecting the transfer is indeed a cheque. Minimises fraud too, as Government departments are constantly targeted. 

No, more like NS&I's IT is garbage. I transferred an Isa from Halifax to Barclays and it was all done electonically and the transfer was completed two or three working days later.

As I said it's not a bank. Why spend huge amounts of money on something that's not cost effective. 

gt94sss2

eskbanker said:

gt94sss2 said:

angelamancini said:

I have set up a complaint what an antiquated system or way for them to benefit from everyones funds in transit!?

There is no point complaining. Most ISA transfers are done by cheque.
Some providers will backdate interest to the date of the cheque when they receive it.

I was under the impression that it was the other way round, i.e. some ISA transfers are done by cheque, and most providers will backdate interest to the cheque date....

In suspect you're right and that many backdate the interest. I still think most transfers are doing by cheque though.

wmb194

Thrugelmir said:

wmb194 said:

Thrugelmir said:

angelamancini said:

I requested a week ago to move my NS & I Isas over to another provider. They have closed my account with them and the new one has been opened with no funds transferred over as all being done by cheque apparently! I have set up a complaint what an antiquated system or way for them to benefit from everyones funds in transit!?

NSI is not a bank. Simplest and easiest way of effecting the transfer is indeed a cheque. Minimises fraud too, as Government departments are constantly targeted. 

No, more like NS&I's IT is garbage. I transferred an Isa from Halifax to Barclays and it was all done electonically and the transfer was completed two or three working days later.

As I said it's not a bank. Why spend huge amounts of money on something that's not cost effective. 

Erm, because it's a MASSIVE institution which might want to offer good customer service? Nationwide isn't a bank and it finds better and faster ways to do things usually equivalent to the... banks. The, 'it isn't a bank' thing is just an apology to excuse poor performance. The problem with NS&I is that it's always been behind in its IT development e.g., even when it would pay monthly interest on its Income Bonds electronically for years and years it still insisted on paying Premium Bond prizes by warrant.