Vanquis 2 Year Fixed

Rougester

Hi there,

I'm very new to fixed rate savings accounts and have recently opened my first, a Vanquis 2 year fixed.

My question; to pay money into my new account I need to transfer by online payment into what appears to be their 'holding account'. From here the money will appear into my new savings account.

Having never transferred large amounts of money over online banking previously this process is making my quite nervous! I'm used to transferring money directly into my own accounts but never experienced transferring into a holding type account.

Is this normal practice? Has anyone come across this previously with either Vanquis or any other bank?

Thanks and perhaps apologies for the amateur savings question. 

bristolleedsfan

https://www.saversfriend.co.uk/charts/2-year-fixed-savings-accounts

https://www.vanquissavings.co.uk/2-year-fixed-rate-bonds/

refluxer

Yes - many banks and building societies operate in this way. You pay into their own, generic account and include your application or account number (as requested) as the payment reference.

Ford Money and the Principality and Leek Building Societies are just a few examples of companies who work like this.

If you're unsure, then a small test payment is advisable at first and you can then make larger payments once you can confirm that that initial payment has gone through. Fixed Rate accounts normally have a period of 1 to 2 weeks for paying in, but do check the T&Cs.

Edit - I see that Vanquis state that 'one payment by bank transfer or cheque' is allowed, so a small test payment may not be possible. For this reason alone, I would personally look elsewhere. IMO, it's likely that the best 1 year fixed rate accounts (currently 2.4%) will approach Vanquis's current 2 year rate @2.62% within the next month or two if rates continue to rise like they have over the last few months.

Albermarle

Most  of these smaller banks ( also Aldermore who I have savings with) have themselves a bank account with one of the big clearing banks. This is what you pay into and I presume at the end of each day, or start of the next day, your money is transferred into your savings account. Occasionally there can be delays, especially recently , due to staff shortages and there seems to have been a quite a lot of account switching going on recently as interest rates have picked up.

Daliah

refluxer said:

Edit - I see that Vanquis state that 'one payment by bank transfer or cheque' is allowed, so a small test payment may not be possible. For this reason alone, I would personally look elsewhere. IMO, it's likely that the best 1 year fixed rate accounts (currently 2.4%) will approach Vanquis's current 2 year rate @2.62% within the next month or two if rates continue to rise like they have over the last few months.

There are also about a dozen 2 year rates higher than 2.62% 
https://moneyfacts.co.uk/savings-accounts/2-year-fixed-rate-bonds/?quick-links-first=false

Rougester

Thanks very much for all replies, this gives me confidence.

Regarding the small test payment - I have enquired with Vanquis to spread the initial deposit over a few payments due to my daily payment limit, which they have agreed to. So will make use of this and firstly send a small amount.

Thanks again!

bristolleedsfan

refluxer said:

IMO, it's likely that the best 1 year fixed rate accounts (currently 2.4%) will approach Vanquis's current 2 year rate @2.62% within the next month or two if rates continue to rise like they have over the last few months.

1 day later  Top 2 year fixed rate -  2.87%
                   Top 1 year fixed rate  - 2.55%