Account Verification…Oxbury and Investec

Sally180

On the advice of MSE, I am trying to invest in fixed term savings with both of the above. I have successfully opened accounts with them, but when it comes to me trying to paying in funds from my NatWest Bank account online, I receive a message saying that my bank is unable to verify the name and account details these Banks have given me. 

Both Oxbury and Investec tell me that this is normal, as they haven’t registered with that scheme, but NatWest warns me against paying money away without the verification, and that they can’t guarantee that funds are safe.

…..can I have some advice please?

Thanks in anticipation 

ColdIron

Yes this is normal with the new Conformation of Payee that banks have recently rolled out. Certainly in the case of Investec it's a pooled account, not one in your name. It will be assigned to your account once received. Just acknowledge the warning and carry on

janusdesign

as @ColdIron mentions, this is normal... I think virtually every savings account i've opened recently (except building societies) don't use payee confirmation yet.

usually the best thing is to make a small deposit first, see if it arrives in the new account and if so, that's when you can start transferring larger amounts to the new account (up to your source bank's daily transfer limits) with peace of mind.

Sally180

Thank you both for your replies. I will do just that.

Zanderman

Bear in mind, if you're doing the test payment first approach (which is very sensible) that some savings accounts, especially fixed rate bonds, allow funding only in a limited time period. Usually 14 days, but check the terms.

And there may be a minimum initial deposit level, often £1000, again check the terms. In which case a smaller trial payment would just bounce back and not be helpful.

A few, in the past, only allowed one deposit, so a test payment wasn't possible but I think those are rare now.

One last point, a pedantic one perhaps, you say you're acting on MSE's 'advice' - that's not quite correct as MSE don't (can't) give financial advice (which is a formal concept), they merely highlight opportunities.

alpaco47

I have recently opened an Oxbury fixed term savings account, but am reluctant to send a large amount to the account, which is not confirmed by Confirmation of Payee. The minimum deposit is £1000 pounds, which I propose to send and see what happens. Judging by review comments this bank seems to operate a very complicated system with no phone number to contact them. Has anyone had any recent problems with them?

cloud_dog

Usually even when they state the minimum, that relates to the minimum required for you to benefit from the advertised rate, and not specifically a minimum actually payment receipt they will process.  

I always just process a £1 transfer and once successfully received process the larger payment(s).