Zenith FR bond

avarndell

I have had a few FR bonds. I applied for one, was accepted but was surprised to find that I was being asked to pay money into an account with the bank's name rather than my own and that I couldn't access an online account to see the amount paid it. (I normally do a £1 check as the first transfer to see that the account works.) I was a little frightened so I emailed to immediately cancel the agreement. I also tried their chat bot but have had no response. Their terms and conditions indicate that they do not have to grant a cooling off period. Please advise.  Thank you, Alison

masonic

This is quite normal, several savings banks get you to send money to their holding account with a clearing bank using the reference field and sending account number to match it to you. There may be no cooling off period, but you are not obliged to fund the account if you have changed your mind.

wmb194

avarndell said:

I have had a few FR bonds. I applied for one, was accepted but was surprised to find that I was being asked to pay money into an account with the bank's name rather than my own and that I couldn't access an online account to see the amount paid it. (I normally do a £1 check as the first transfer to see that the account works.) I was a little frightened so I emailed to immediately cancel the agreement. I also tried their chat bot but have had no response. Their terms and conditions indicate that they do not have to grant a cooling off period. Please advise.  Thank you, Alison

It's not unusual for small banks and building societies to use collection accounts i.e. everyone deposits their money to the same account number and sort code but then the money is allocated to your account using a unique reference number. These accounts are often held with NatWest and Barclays.

They don't have to offer a cooling off period with fixed rate bonds but if you haven't transferred any money and don't want the account just do nothing, it will be closed in due course and you cannot be forced to make a deposit.