Is It A Fact That All ISA transfers have interest backdated ?

masonic

bristolleedsfan wrote: »

leek paid interest from day of receipt despite it being a cheque receipt ( so no waiting the usual in leeks case 2 calender days. ( 2 calender days being better than 2 working days elsewhere )

That's true, but you have still lost one days interest because it took a day for the cheque to arrive at Leek. Presumably, if it had taken a week to arrive, you would have lost a weeks worth of interest (since it is the date the cheque arrived that is important to them, not the date it was written).

I can't say I'm aware of any ISA managers that wait for ISA cheques to 'clear' before the funds start earning interest, but the problem often isn't there anyway - it's either the delay between the cheque being posted and arriving, or the delay between the cheque arriving and being processed. Because there are 3 different ways you can lose interest during an ISA transfer, it's usually pretty difficult to check that a particular policy has been adopted.

quoting milarky "The terms of a transfer should be agreed between the investor and both ISA managers "

impression nationwide have given is that isa managers that accept ISA transfers in have agreed between themselves that no loss of interest will be incurred on isa transfers, if that is the case which is probable ( as nationwide will know they would be quoted on their assurance given) then some isa providers are clearly not implementing any apparent agreement that isa providers have regarding this.

I think the more likely agreement is that ISA accounts pay interest on transfer cheques from the day they are applied to the new account. I suspect Nationwide may be neglecting postal delays and processing delays in what they have said to you. However, this is all speculation on our part. There could be no general agreement in this area at all.

bristolleedsfan

masonic wrote: »

That's true, but you have still lost one days interest because it took a day for the cheque to arrive at Leek. Presumably, if it had taken a week to arrive, you would have lost a weeks worth of interest (since it is the date the cheque arrived that is important to them, not the date it was written).

I can't say I'm aware of any ISA managers that wait for ISA cheques to 'clear' before the funds start earning interest, but the problem often isn't there anyway - it's either the delay between the cheque being posted and arriving, or the delay between the cheque arriving and being processed. Because there are 3 different ways you can lose interest during an ISA transfer, it's usually pretty difficult to check that a particular policy has been adopted

I think the more likely agreement is that ISA accounts pay interest on transfer cheques from the day they are applied to the new account. I suspect Nationwide may be neglecting postal delays and processing delays in what they have said to you. However, this is all speculation on our part. There could be no general agreement in this area at all.

uve not commented at all on fact scottish have credited me with 1.42 ( 1000.00 transfer) in what scottish referred to as "missing interest" after i queried loss of interest with Scottish BS

ive seen other people post stating their belief that some building societies dont pay interest until what was prior to 1 december 3rd working day following receipt on isa transfers.

ive also seen people post saying it takes them 30 days to make up for loss of interest incurred on isa transfer outs when imo they should be questioning why theve incurred any loss of interest.

im not being cheeky but it is u thats doing the presuming as nationwide have stated as a matter of fact that ALL isa transfer ins are backdated to ensure no loss of interest. ( there must be a general agreement regarding no loss of interest on isa transfers for nationwide to make that general assurance)

just appears that their are some who have incurred loss of interest on isa transfer outs and dont want to believe that they shouldnt have incurred any loss of such interest.

masonic

bristolleedsfan wrote: »

ive had no definite date from nationwide to say when the transfers out were transacted by nationwide ( only statement that they are now done because scottish asked for my nationwide isa passbook and it came back no further updated than when it went, before u say well hey that doesnt say much about nationwide, true, and ive received a total of 125.00 compensation from nationwide as regards my experiences at transferring out my former portman isa. :j

What you do know for a fact is that Leek have not fully backdated your interest. It looks like you have lost only 1 day, but you can be certain that you have lost at least one day because Leek have told you categorically that they apply interest only from the date they receive the cheque. So, either Nationwide are wrong, or Leek have, in your opinion, swindled you out of money you have been told you deserve.

uve not commented at all on fact scottish have credited me with 1.42 ( 1000.00 transfer) in what scottish referred to as "missing interest" .

Sorry, I've not seen where this has been mentioned before. £1.42 is way too much to relate to 'normal' interest lost through a transfer of £1000. Was the interest backdated to the date written on the cheque in this case, or was it backdated to the date they initially received the cheque?

ive seen other people post stating their belief that some building societies dont pay interest until what was prior to 1 december 3rd working day following receipt on isa transfers.

Yes, I'm not sure about that. I've never experienced it, and I would not necessarily trust a customer services rep not to get confuse ISA transfer cheques with standard personal cheques and give someone the wrong information. I'd like to see a post from someone showing either T&Cs specific to what happens during an ISA transfer or an interest calculation showing missing interest for those 3 days before making any conclusions.

ive also seen people post saying it takes them 30 days to make up for loss of interest incurred on isa transfer outs when imo they should be questioning why theve incurred any loss of interest.

Well it looks almost certain that you've lost at least one days interest on your transfer to Leek. When you've confirmed the dates, are you going to question why you've incurred that loss?

im not being cheeky but it is u thats doing the presuming as nationwide have stated as a matter of fact that ALL isa transfer ins are backdated to ensure no loss of interest. ( there must be a general agreement regarding no loss of interest on isa transfers for nationwide to make that general assurance)

The trouble is that they don't have the authority to state anything as a matter of fact about other institutions. They have no control over what those institutions do and they have not provided you with anything to back up what they say. They have not told you that there is an agreement between ISA managers regarding this - that is a presumption you have made based on what they did tell you (that you would not lose interest - which appears to have turned out not to be true).

You pretty much know for a fact that you have incurred a loss of interest in your transfer to Leek, so either Nationwide must be wrong and there is no general agreement about this or Leek have swindled you out of interest.

just appears that their are some who have incurred loss of interest on isa transfer outs and dont want to believe that they shouldnt have incurred any loss of such interest.

I want to believe it. But without evidence, I can't. Believe me, I'd love to go back to institutions and demand missing interest if I thought I was entitled to it, but the opinion of one customer service rep working for Nationwide is not enough to enable me to do that.

roddydogs

Dont some have rules that interest is only paid on a "Full" day so you dont get inerest on the actual day its tranferred?

bristolleedsfan

roddydogs wrote: »

Dont some have rules that interest is only paid on a "Full" day so you dont get inerest on the actual day its tranferred?

interest is normally only paid on full days i.e usually if u make a withdrawal then interest stops on the day before the withdrawal is made, cash deposits usually earn interest from the following day. ( there are of course exceptions)

KRBS confirmation of transfer in funds rolled in today so i will now tackle KRBS regarding when KRBS started paying interest on my isa in funds.

i could go back to nationwide and ask them what day they stop paying interest on isa transfers out, being as nationwide have paid me a total of 125.00 compensation re my former portman ISA transfer out experiences i believe such a communication from me would be putting it mildly "cheeky". :cheesy:

steady__eddie

On the 22nd of September, I initiated two ISA transfer requests. The first was from Derbyshire to Saffron, on the 3rd of December, I received confirmation from Derbyshire together with my passbook that funds had been transferred (a/c. closure date 3rd of December). Today, I received my passbook from Saffron which indicated that the cheque which they received had been credited to my a/c. on the 3rd of December.
The second transfer is unfortunately less successful and concerns a request to transfer from Nationwide to Derbyshire. Four weeks ago I received a 'phone call from Nationwide to verify the request. All went well and I was informed that the transfer would be made within "5 working days". Today I received a letter from Derbyshire which stated, "Following your request to transfer your ISA from Nationwide to us, I can confirm that to date we have not received any funds for your account"
You win some, you lose some.

bristolleedsfan

since my last post KRBS phoned me, they said that it is a recommendation within the banking code that isa transfers are backdated to ensure no loss of interest, as its only a recommendation they dont need to abide by it ( and they dont).

i plan to lodge a written complaint within which ill seek proof of when the cheque they received from nationwide was cashed. ( 7 calendar days they claim it took them to receive the cheque, yet leek received next day + no interest until third working day following receipt , i told them should be two days now)

carpy

is there any up to date info on this seems abit of a 'grey' area??