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

Mayday

Helping my elderly father to cash in some Premium Bonds to help pay for his care home fees - and he gets locked out of his account!  Now he has to fill in a form and post it to NS&I in order to regain access to his funds.    Not impressed as last time we did this all went to plan 

Consumerist

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....

I was under the impression that where ISA funds are transferred by cheque, the receiving bank must pay interest from the date on the cheque, in accordance with ISA transfer rules set by the regulator.

This process makes sense because the value of the cheque can only be set if the interest payment date is known. The transfer date is usually agreed between the parties prior to the transfer.

eskbanker

Consumerist said:

I was under the impression that where ISA funds are transferred by cheque, the receiving bank must pay interest from the date on the cheque, in accordance with ISA transfer rules set by the regulator.

No, it's just best practice recommendations that set this out, rather than rules as such....

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/693198/Appendices.pdf

Cash ISA to Cash ISA Transfers – suggested best practice

We recommend that ISA providers adopt the procedures below, devised by representatives of the industry. However, they are recommendations only and not prescriptive.

[...]

Interest on the transferred funds should be backdated either to the date on the cheque, inclusive, or to the date which represents ‘day 16’ of the transfer process, inclusive – whichever is earlier. 

BloodyStupidJohnson

So if moving money from NS&I Income Bonds out to somewhere with a lower interest rate is it best to wait until the 24th November, when the interest rate gets slashed? Will I get 1.16% up until then?
Thanks.

eskbanker

BloodyStupidJohnson said:

So if moving money from NS&I Income Bonds out to somewhere with a lower interest rate is it best to wait until the 24th November, when the interest rate gets slashed? Will I get 1.16% up until then?
Thanks.

The 1.16% rate applies up to 23 November so there's no obvious reason to shift funds out to a lower rate account before then: https://nsandi-corporate.com/news-research/news/nsi-reduce-interest-rates-24-november-2020

cgmcgm

One might hope they'd fixed it by now, but I gor the same issue trying to withdraw all but £500.

There is another issue with closing the account. When it showed me the accrued interest that would be added to my withdrawal, the figure was about 10% of what it should be. I managed to contact their chat about this, but they simply said to ask the phone service - which is overwhelmed and disconnecting calls. So I'm locked in to their pathetic interest rate for an unknown amount of time.

Thrugelmir

cgmcgm said:

One might hope they'd fixed it by now, but I gor the same issue trying to withdraw all but £500.

There is another issue with closing the account. When it showed me the accrued interest that would be added to my withdrawal, the figure was about 10% of what it should be. I managed to contact their chat about this, but they simply said to ask the phone service - which is overwhelmed and disconnecting calls. So I'm locked in to their pathetic interest rate for an unknown amount of time.

Everybody will be emptying their account now. Having waited until the last minute. Hardly surprising. 

In a few days all will be back to normal. 

colsten

cgmcgm said:

One might hope they'd fixed it by now, but I gor the same issue trying to withdraw all but £500.

There is another issue with closing the account. When it showed me the accrued interest that would be added to my withdrawal, the figure was about 10% of what it should be. I managed to contact their chat about this, but they simply said to ask the phone service - which is overwhelmed and disconnecting calls. So I'm locked in to their pathetic interest rate for an unknown amount of time.

Your Income Bonds paid monthly interest, into your nominated account, around the 5th of a month. So when you are closing the Income Bond account, all you get is the interest since the last interest payment

VXman

cgmcgm said:

One might hope they'd fixed it by now, but I gor the same issue trying to withdraw all but £500.

There is another issue with closing the account. When it showed me the accrued interest that would be added to my withdrawal, the figure was about 10% of what it should be. I managed to contact their chat about this, but they simply said to ask the phone service - which is overwhelmed and disconnecting calls. So I'm locked in to their pathetic interest rate for an unknown amount of time.

My interest was minuscule....but then I remembered that I had opted to have interest paid into my nominated account each month! Not sure why I did that.

ColdIron

Because that's how it works. It only pays interest monthly and there is no option to retain it in the account

• An easy access savings account that pays your interest monthly, direct to your bank.