Cash ISA transferring - why do some make it so difficult?

danthemoneysavingman

Hi, just thought I'd share my experience this week of trying to transfer a cash ISA to one of the current top rates.

What a pain in the proverbials.

First: thought I'd try Prinicpality BS. To open this, before you even get to transfer, you've got to send the either original passport or driving license, utility bill (who even has these in the post these days?), or certified copies (which you would then have to pay for), etc etc... ugh. No thanks.

So to Zopa. Get the app... no problem. Apply for a savings account to get access to the ISA... returns the status "in review, may take up to 72 hours". OK, sure, why? no reason.
Later that day I get an email saying "cant open as you didn't finish your application"... what?
So I try contacting them... only in business hours it seems.
So i tried again this morning. Had to repeat every statement twice, waiting ages between each response, until I'm told " we're still looking into this...", I mean how difficult can it be? Very it seems.

So, decided I'd try MoneyBox. What a breath of fresh air. Get the app, apply directly for a cash isa transfer, get all the details in, done and underway in 3 minutes. They shall get my money. WELL DONE MONEYBOX.

Why is the experience and requirements so different from institution to institution? Who knows - and I work in credit risk/AML. And still no clue.

Thoughts and experiences welcome!

amanda1024

I’ve had painless experiences setting up and transferring ISAs at Barclays, NatWest, Virgin - but I already had accounts set up for online/app banking with all 3. In comparison I found moneybox LISA unintuitive to pay into - rather than faster payments, I had to wait for a particular day of the week that suited them 

Barkin

Recently (ish) - Nationwide, Shawbrook, Skipton, Cambridge BS. No problems at all.

I also opened a Zopa account without issue, but that was somr time ago. 

boingy

The only problem with the Moneybox cash ISA is you don't know which underlying bank your money is with so you could exceed the £85k protection limit if you have significant savings outside of Moneybox. 

They say:

The banks we use change over time. The banks we currently use are:

• HSBC Bank PLC
• Santander UK PLC
• National Westminster Bank PLC
• Clydesdale Bank PLC

GrubbyGirl_2

I did an ISA transfer with Zopa just 1 week after they started allowing ISA transfers so I wasn't expecting it to be a smooth experience as they were new to the game.  In fact it was all done and dusted in days so I was very happy.  I also recently transferred ISAs into Aldemore and Charter Savings banks and all went smoothly

Albermarle

danthemoneysavingman said:

Hi, just thought I'd share my experience this week of trying to transfer a cash ISA to one of the current top rates.

What a pain in the proverbials.

First: thought I'd try Prinicpality BS. To open this, before you even get to transfer, you've got to send the either original passport or driving license, utility bill (who even has these in the post these days?), or certified copies (which you would then have to pay for), etc etc... ugh. No thanks.

So to Zopa. Get the app... no problem. Apply for a savings account to get access to the ISA... returns the status "in review, may take up to 72 hours". OK, sure, why? no reason.
Later that day I get an email saying "cant open as you didn't finish your application"... what?
So I try contacting them... only in business hours it seems.
So i tried again this morning. Had to repeat every statement twice, waiting ages between each response, until I'm told " we're still looking into this...", I mean how difficult can it be? Very it seems.

So, decided I'd try MoneyBox. What a breath of fresh air. Get the app, apply directly for a cash isa transfer, get all the details in, done and underway in 3 minutes. They shall get my money. WELL DONE MONEYBOX.

Why is the experience and requirements so different from institution to institution? Who knows - and I work in credit risk/AML. And still no clue.

Thoughts and experiences welcome!

There is a bit of luck involved. Sometimes the automatic ID checks do not work and they have to ask for a lot more info. I think they even do this at random as well. Plus there is always room for admin/IT glitches, or clients putting their name in wrong format etc
You could have 19 people open an ISA with provider X with no issue, and then one has one issues.

ruplestiltskin

Tried to transfer my cash isa from gatehouse bank for over 6 months  they  use various excuses including   closing account and sending the cheque to the nat west  which disappeared for 2 months  then incredibly  was found and  was placed back into the closed account then tried barclays  to transfer to there cash isa  ,my latest attempt is with skipton  who say  gatehouse bank are not replying to there emails.
   Wrote to obnesman but upto now no joy
  Interest rate at gatehouse bank is just over 1%  I've been missing out  of interest of over 5%  although I would have to  loose  several months exit penalty 
 Gatehouse bank is indian and  uses sharia law and  on opening wouldn't pay interest  .they  after complaining  began  to pay interest into account
  Has anyone had similar problems with gatehouse bank??

eskbanker

ruplestiltskin said:

Gatehouse bank is indian

What makes you say that?

danthemoneysavingman

ruplestiltskin said:

Gatehouse bank is indian

...

Ombudsman appears your only option. Very slow however.

They are a UK bank, just sharia compliant:
"a subsidiary of Gatehouse Financial Group Limited. It is authorised by the Prudential Regulation Authority and regulated by the PRA and the Financial Conduct Authority."

Sorry you've had such trouble, such things are very frustrating.

xylophone

Is the case that as things stand, you have a fixed term ISA with Gatehouse Bank?

ruplestiltskin

I have a fixed term with gatehouse bank but can transfer the isa to another provider but I have to pay the exit penalty , upto now gatehouse have refused to do, I have already tried nat west,Royal Bank of Scotland  ,barclays and skipton bs  gatehouse just do not respond,   and have failed  to reply to my complaint  so I have wrote to ombudsman