Marcus ISA - WARNING

eskbanker

subjecttocontract said:

* Marcus sent a letter (by post) telling us they had sent the money to Santander on 21st April.
* Santander credited the new ISA account on 4th May = 12 days no interest.
* £50 voucher received 5th May

No interest for 12 days = £27 loss.
It could have been worse......on £80K it would have been a loss of £109.

I guess the lesson Iearnt is ....avoid putting ISA money into any account that doesnt do electronic transfers.

A delay in crediting the receiving account shouldn't in itself equate to a loss of interest, in that they should backdate the interest to the date of the cheque (not the date of crediting) if following the HMRC guidelines about this, so wait until you ascertain whether you actually have lost out on interest before deciding if there's anything to complain about:

The new ISA provider should apply the transferred funds to the customer’s account. Interest on the transferred funds should be backdated either to the date on the cheque, inclusive, or to the date which represents ‘day 16’ of the transfer process, inclusive – whichever is earlier. 

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/693198/Appendices.pdf

financehelp23

subjecttocontract said:

* Marcus sent a letter (by post) telling us they had sent the money to Santander on 21st April.
* Santander credited the new ISA account on 4th May = 12 days no interest.
* £50 voucher received 5th May

No interest for 12 days = £27 loss.
It could have been worse......on £80K it would have been a loss of £109.

I guess the lesson Iearnt is ....avoid putting ISA money into any account that doesnt do electronic transfers.

I got no interest and no voucher. They received the cheque on 21st Apr and cleared it on 2nd May, then removed it and put it in again on 3rd May. I do not know why. I spoke to them last week, and they told me there is an interest and voucher. But still not in my account and no email. I know Barclay pays all interest once the cheque is issued. I will wait to Tuesday otherwise give them a call.  

subjecttocontract

financehelp23 said:

subjecttocontract said:

* Marcus sent a letter (by post) telling us they had sent the money to Santander on 21st April.
* Santander credited the new ISA account on 4th May = 12 days no interest.
* £50 voucher received 5th May

No interest for 12 days = £27 loss.
It could have been worse......on £80K it would have been a loss of £109.

I guess the lesson Iearnt is ....avoid putting ISA money into any account that doesnt do electronic transfers.

I got no interest and no voucher. They received the cheque on 21st Apr and cleared it on 2nd May, then removed it and put it in again on 3rd May. I do not know why. I spoke to them last week, and they told me there is an interest and voucher. But still not in my account and no email. I know Barclay pays all interest once the cheque is issued. I will wait to Tuesday otherwise give them a call.  

Yes we had exactly the same......cheque paid in, then removed, then paid in again. No matter it's in there now......my wife has checked her account online. We were advised to check  junk mail box in case the voucher is in there.

We have transferred a few cash ISA's over the last 6 months with different providers....all of them were lengthy, stressfull and a total pain in the backside.

TheBanker

financehelp23 said:

subjecttocontract said:

* Marcus sent a letter (by post) telling us they had sent the money to Santander on 21st April.
* Santander credited the new ISA account on 4th May = 12 days no interest.
* £50 voucher received 5th May

No interest for 12 days = £27 loss.
It could have been worse......on £80K it would have been a loss of £109.

I guess the lesson Iearnt is ....avoid putting ISA money into any account that doesnt do electronic transfers.

I got no interest and no voucher. They received the cheque on 21st Apr and cleared it on 2nd May, then removed it and put it in again on 3rd May. I do not know why. I spoke to them last week, and they told me there is an interest and voucher. But still not in my account and no email. I know Barclay pays all interest once the cheque is issued. I will wait to Tuesday otherwise give them a call.  

I think you need to wait to receive your first interest payment, then calculate how many days it covers, before you can say 'no interest'.

It is possible that the act of removing and re-crediting the cheque was to allow them to change the value date, so their system calculates interest for the 'missing' period. 

For the voucher, I think a bit more patience is needed. Santander's T&Cs say: We will assess the Qualifying account within 30 days of the transfer completing to decide whether you have qualified for the ISA Transfer Offer and the Voucher Payment under these Terms. If you Qualify, we will make the Voucher Payment to you.

financehelp23

Thanks all, It looks like everyone got vouchers at different time speeds. Also, some staff told me the interest is only paid at maturity. But I do not understand why we can not see monthly interest. Are all the fixed-rate ISA only showing interest at maturity, like one year after?  

subjecttocontract

I have another 1 yr fixed rate Santander ISA (4.15%) which I opened with new money on April 6th.
For some reason, exactly 1 month later they added interest up to May 5th.
So, wait a month and see what you get !

financehelp23

subjecttocontract said:

I have another 1 yr fixed rate Santander ISA (4.15%) which I opened with new money on April 6th.
For some reason, exactly 1 month later they added interest up to May 5th.
So, wait a month and see what you get !

Hi, I just called them they have no idea interest situation. They raised it with the ISA team and will send a letter explaining their interest. Still no voucher. I do not know why another of their staff confirmed the exact interest amount and voucher. The whole process was stressful, they initially sent a transfer request to the wrong provider wasted 1 week. 
I read the news that Santander has many mistakes during the transfer and got some penalties. 
Similar issues Barclay is much smoother and very clear about any issues. I learnt never to deposit ISA with paper transfers.