CHAPS payment to NS&I Income Bond

Maz1963

Hi. Does anyone have experience of transferring funds to an NS&I Income Bond by CHAPS?  I went into a branch of my bank today to transfer funds from my house sale to my NS&I Bond (until I work out what to do with it due to the new, low interest rate with NS&I!).  My bank said it would be with them within two hours. I just waited 45 mins to talk to someone at NS&I about their timescales, but phone lines busy and got tired of waiting. I assume it goes into holding and then gets allocated to my account. Just wanted it somewhere safe for a short while until I research other options. It's worrying when a large sum sits in the ether somewhere!

eskbanker

Maz1963 said:
Just wanted it somewhere safe for a short while until I research other options.

Assuming the house sold was your main residence, your money is already safe in the bank it's deposited in, under the FSCS temporary high balances provision, protecting up to £1m for up to a year for certain life events: https://www.fscs.org.uk/how-we-work/claims-process/temporary-high-balances/

Rodders53

We added some money by Faster Payments a few months back and it took around 4-5 days to appear in the NS&I account, although it only takes a few moments to get there...
That's normal for NS&I.

You realise the house sale money was likely protected where it was?  https://www.fscs.org.uk/how-we-work/claims-process/temporary-high-balances/

greatcrested

Why on earth put it in NS&I at this time?

Any amount up to £1m is protected after a property sale for 6 months. Plenty of time to decide what to do and at least you can earn 1% ish in the meantime.

Thrugelmir

Rodders53 said:

We added some money by Faster Payments a few months back and it took around 4-5 days to appear in the NS&I account, although it only takes a few moments to get there...
That's normal for NS&I.

Still requires manual input to allocate and post it. Not going to be the only transaction in the NSI bank account. 

Maz1963

Well I'm impressed, a day later it's in my account!  I had no idea about the protection for proceeds of a main home, that's new info for me, thanks. My logic was to get it in the Bonds account until the interest rate reduces on the 24th, then I'll move elsewhere. It's a considerable sum and I really did not want it lurking in a current account. I believe Bonds still offer up to £2m protection. Now I have the joy of working out where best to put it next, easy access, for the next house. I think Premium Bonds first and then splitting between various banking groups, while keeping a detailed record so I know where it all is when I come to buy a new house.  I nice problem to have, shame there's so little interest to be had on any of it.  

Rodders53

Thrugelmir said:

Rodders53 said:

We added some money by Faster Payments a few months back and it took around 4-5 days to appear in the NS&I account, although it only takes a few moments to get there...
That's normal for NS&I.

Still requires manual input to allocate and post it. Not going to be the only transaction in the NSI bank account. 

I know and accept that. 
The normal for N&I remark should have been the give-away.