Cash ISA transfer ex NS&I

TheWoodler

I correctly completed the literal paperwork to transfer my NS&I Cash ISA to a new provider. Absolutely carefully checked, no issue there, happily accepted by my new provider, NS&I assured me it would land within 3-5 working days.

It’s gone over both that and the typical 15 days and the new provider and I have both chased NS&I for the funds. 

A significant sum seems to be stuck in limbo. Feeling very uneasy about it until it lands and fretting about a protracted battle for my money.

What are people’s experiences, please? Seeking reassurance. I’ve already raised a complaint. 

eskbanker

It's notoriously difficult to pinpoint which provider is to blame in scenarios like this, but ISA transfers have often been slower than usual during the pandemic - who is the new provider, and is it them you're complaining to (as the one primarily responsible for enacting the transfer)?

Yellowman

We need an electronic transfer system.

TheWoodler

Interesting that transfer times continue to be an issue 2 years in, if I understand you rightly.

I’ve chased both ends but the complaint is active at NS&I end. My new provider was able to document dates and times they have already chased NS&I. 

The new provider has been proactive and clear in communications, information and updates - in contrast to NS&I on all counts.

Agreed, I was surprised NS&I were so clunky as to be unable to transfer electronically as it’s electronic at the new provider end. Could that mismatch be why? So how will it be transferred -  BACS or a physical cheque? I’m having visions of it landing in someone else’s account or floating free in the ether. 

refluxer

I transferred a Junior Cash ISA from NS&I to Tesco Bank in last November and the funds took just over 3 weeks (24 days) to show up in the new account. I was told by Tesco that transferring a Junior ISA is quite labour-intensive and I know it definitely involved sending funds by cheque through the post, because a photocopy of the form and cheque was visible in my Tesco online banking. 

If the guidelines say transfers should be complete in 15 days, then that could well be 15 working days (3 weeks) I guess ?

I've transferred a number of ISAs in previous years and interest is normally back-dated so you don't usually lose out financially, but I agree that it's a bit disconcerting to see those funds disappear for a while.

eskbanker

There is an electronic transfer system but not all providers use it, so paper transfers with physical cheques remain the lowest common denominator.

TheWoodler

refluxer said:

I transferred a Junior Cash ISA from NS&I to Tesco Bank in last November and the funds took just over 3 weeks (24 days) to show up in the new account. I was told by Tesco that transferring a Junior ISA is quite labour-intensive and I know it definitely involved sending funds by cheque through the post, because a photocopy of the form and cheque was visible in my Tesco online banking. 

If the guidelines say transfers should be complete in 15 days, then that could well be 15 working days (3 weeks) I guess ?

I've transferred a number of ISAs in previous years and interest is normally back-dated so you don't usually lose out financially, but I agree that it's a bit disconcerting to see those funds disappear for a while.

I did wonder that but NS&I told me categorically at the time per phone call - as they wouldn’t action without me jumping through security hoops - that the money would be with my new provider in 3-5 working days. We’re well past that, they have not lived up to their word. My new provider have prodded them twice already. 

TheWoodler

I just have a horrible feeling that something’s gone wrong as it should’ve been straightforward. Desperately worried about the prospect of battling to recover the money. 

refluxer

TheWoodler said:

I did wonder that but NS&I told me categorically at the time per phone call - as they wouldn’t action without me jumping through security hoops - that the money would be with my new provider in 3-5 working days. We’re well past that, they have not lived up to their word. My new provider have prodded them twice already. 

3-5 days might be their official line, but it's a pipe-dream if my experience of NS&I in recent years is anything to go by.

For example - I set up a standing order to pay into my son's NS&I Junior ISA on the 1st of every month and it would take anything up to a week to show in his account, so I really don't fancy their chances at being able to process a more complex transaction like an ISA transfer in less than that !

GrubbyGirl_2

It takes NS&I 8 days to pay premium bond winnings into their own direct saver account.  They are the slowest provider ever

eskbanker

GrubbyGirl_2 said:

It takes NS&I 8 days to pay premium bond winnings into their own direct saver account.  They are the slowest provider ever

They're the only provider of premium bonds!

It's not a particularly meaningful comparison - the fact that they distribute PB winnings on the sixth working day of the month doesn't really mean that it 'takes 8 days' as such, it's a scheduled monthly activity for the 3m prizes regardless of where the money's going.

Having said that, it's undoubtedly hard to defend the timeliness of some of NS&I's practices, but citing PB winnings distribution doesn't seem a particularly relevant stick to beat them with in the context of a thread about ISA transfer timescales....