NS&I - Reassurance Needed 20 June 2022 at 12:18PM in ISAs & tax-free savings 5 replies 272 views

GrubbyGirl_2

Is it just me or are NS&I bad for everybody?

I decided to jump to a fixed rate ISA with Aldermore.  I opened the account on 15th May and NS&I have still not transferred the money.  After chasing I was finally notified that my ISA had been closed and the money transferred but as of now Aldermore have not received anything a week later.  From what I've read on here they seem to do everything by paper, so will likely have sent a cheque, but even so they should have received it by now if they sent it when they said they did.  I presume they do things in this prehistoric way so that the money stays in their account longer.  Calling NS&I is a waste of time as the people who you talk to simply can't answer.

This was what they told me when I contacted them:


We have to allow to time for communication to be sent to and from the new provider. I have broken down the 15 days below: -The new ISA manager has 5 business days to forward the instruction to the old ISA manager -The old ISA manager has 5 business days in which to send the funds and a transfer history form to the new ISA manager. -The new ISA manager has 3 business days to apply the funds to the new ISA manager.


It's now been 24 days and we should be at the day 10 point

I'm concerned because it's a lot of money to not be showing in any account.  Am I worrying about nothing?  Has anyone else had this experience and if so how long did it take from closure of the old account to it appearing in the new one?


My first concern is finding my money but then I intend to make a formal complaint.  Is there a body that I can complain to?

Angela

refluxer

To give you an idea of the ISA transfer timescales I've experience with the NS&I, transferring a Yorkshire Child Trust Fund to an NS&I Junior ISA took about 2 months in July 2020. As this was relatively early days into the Covid pandemic and I presumed that the CTF to Junior ISA process was a bit more involved than a straight ISA to ISA transfer, I gave them a bit of a break on this occasion however it was obviously disconcerting to see those funds disappear for a good week or two while mid-transfer.

A subsequent transfer of the same NS&I Junior ISA to Tesco took 24 days in Nov 2021 and this definitely involved the NS&I posting a cheque, as a photocopy of it was made available in my Tesco online banking account. 

For future reference, Cynergy provide a handy list of the banks and building societies that take part in the BACs Cash ISA Transfer Service here. Transferring an ISA when both banks are members of this scheme should be done electronically, but if one or both aren't members, then funds are presumably transferred by cheque and therefore likely to take longer. Aldermore are on the list, but NS&I aren't.

I've you've followed the transfer process properly and NS&I have confirmed that they've posted a cheque, then I would presume that NS&I and Aldermore will have to sort this out for you if there are any problems. 

GrubbyGirl_2

refluxer said:

For future reference, Cynergy provide a handy list of the banks and building societies that take part in the BACs Cash ISA Transfer Service here. Transferring an ISA when both banks are members of this scheme should be done electronically, but if one or both aren't members, then funds are presumably transferred by cheque and therefore likely to take longer. Aldermore are on the list, but NS&I aren't.

I've you've followed the transfer process properly and NS&I have confirmed that they've posted a cheque, then I would presume that NS&I and Aldermore will have to sort this out for you if there are any problems. 

That's very helpful thank you.  Shocking in this day and age that they still write cheques.  They didn't tell me they had sent a cheque just that my account has been closed.  If it wasn't for the fact I have premium bonds with them I'd close all my accounts with them.

refluxer

GrubbyGirl_2 said:

That's very helpful thank you.  Shocking in this day and age that they still write cheques.  They didn't tell me they had sent a cheque just that my account has been closed.  If it wasn't for the fact I have premium bonds with them I'd close all my accounts with them.

I've decided to try and stick to banks and building societies on that list for ISAs from now on, unless any really exceptional rates from those who aren't crop up.

To be fair, the list is pretty extensive and most of the companies who are regulars on the MSE top tables are on it, but a few notable exceptions that aren't include Hodge Bank and Castle Trust.

dunstonh

I presume they do things in this prehistoric way so that the money stays in their account longer. 

No.

They just haven't had the funding to update their systems.

Shocking in this day and age that they still write cheques. 

Still very popular with providers as it provides a better audit trail and less open to fraud and mistakes.   

GrubbyGirl_2

Aldermore have finally received the cheque just 9 days after it was supposedly sent.  NS&I must have hand delivered it on foot