Cash ISA Interest paid by cheque!

eskbanker

DopeyDylanH said:

I started my complaint from before even opening my ISA actually!

You logged a formal complaint with Barclays "on a litany of issues" but still chose to open a new account with them?

DopeyDylanH said:

My original question was not about the ombudsman though, it was about whether cheques are sent for any other ISA not with Barclays.

Your original reference to engaging with the ombudsman was well before clarifying that you'd tacked this on to a bigger previous complaint about other matters, so it's unsurprising that people were unclear about the FOS involvement.  Hopefully you're happy with the answers to your original question, which can best be summarised as being an unusual practice that nobody on here is aware of with other providers, but obviously the onus remains on you to study the terms of any product you're interested in....

ColdIron

DopeyDylanH said:
My original question was not about the ombudsman though, it was about whether cheques are sent for any other ISA not with Barclays.

Why are you seeking out other banks that pay interest via cheque when you're clearly upset with Barclays?

eskbanker

ColdIron said:

DopeyDylanH said:
My original question was not about the ombudsman though, it was about whether cheques are sent for any other ISA not with Barclays.

Why are you seeking out other banks that pay interest via cheque when you're clearly upset with Barclays?

Presumably the question is being asked in order to avoid any such banks?

ColdIron

Seems to me this could be avoided by reading the T&Cs (or even the clear warning on the summary page) before agreeing to them next time

masonic

DopeyDylanH said:

My original question was not about the ombudsman though, it was about whether cheques are sent for any other ISA not with Barclays.

It is still common practice for a bank to repay money to a saver via cheque when they have not nominated another account to receive the payment. It is just unusual for a customer not to provide these details when setting up such an arrangement.

There was another thread recently where the poster had opened a one year fix and was dumbfounded that the interest wasn't being paid out to them. They too made an error in specifying how interest should be paid.

DopeyDylanH

masonic said:

DopeyDylanH said:

My original question was not about the ombudsman though, it was about whether cheques are sent for any other ISA not with Barclays.

It is still common practice for a bank to repay money to a saver via cheque when they have not nominated another account to receive the payment. It is just unusual for a customer not to provide these details when setting up such an arrangement.

There was another thread recently where the poster had opened a one year fix and was dumbfounded that the interest wasn't being paid out to them. They too made an error in specifying how interest should be paid.

All ISA's I've had have generally asked 2 clear questions.  Interest paid Annually or Monthly and into the ISA (assumed!) or to an external account.  I was asked just the first question.  And I did have an account with them, the ISA itself (like I've had with all other ISA providers before).

DopeyDylanH

eskbanker said:

ColdIron said:

DopeyDylanH said:
My original question was not about the ombudsman though, it was about whether cheques are sent for any other ISA not with Barclays.

Why are you seeking out other banks that pay interest via cheque when you're clearly upset with Barclays?

Presumably the question is being asked in order to avoid any such banks?

Yes.  Though fortunately I think by avoiding Barclays itself (for the rest of my life!), it looks like I've got this covered.

DopeyDylanH

Thanks for your feedback all.  I apologise to those that feel I misled them, I did think my original question was specific about what I perceived to be an unusual practice.  I probably shouldn't have elaborated on the other stuff, as some became defensive of T&C's/Barclays.  Regardless, thank you!  If anyone else does know of any other bank paying interest in such a backward way, I'd genuinely be interested to hear this.

masonic

DopeyDylanH said:

masonic said:

DopeyDylanH said:

My original question was not about the ombudsman though, it was about whether cheques are sent for any other ISA not with Barclays.

It is still common practice for a bank to repay money to a saver via cheque when they have not nominated another account to receive the payment. It is just unusual for a customer not to provide these details when setting up such an arrangement.

There was another thread recently where the poster had opened a one year fix and was dumbfounded that the interest wasn't being paid out to them. They too made an error in specifying how interest should be paid.

All ISA's I've had have generally asked 2 clear questions.  Interest paid Annually or Monthly and into the ISA (assumed!) or to an external account.  I was asked just the first question.  And I did have an account with them, the ISA itself (like I've had with all other ISA providers before).

The question they should have asked is whether you want the interest added to the ISA or paid to another account. The answer to this question dictates whether the interest is annual or monthly. It is immaterial whether interest is paid monthly or annually when it is added to a fixed term ISA.

The ISA itself was not open when you applied for it, so it could not have been used as the nominated account during the application. You've not said whether or not you held a Barclays account at the time you applied for the ISA, but if you did, that would have been used as the nominated account. If you subsequently closed it, that would lead to the situation you describe. If, however, you went to Barclays to open the ISA not having any other accounts with them, then the adviser you spoke to ought to have flagged that there was nowhere for the interest to be paid if you selected the monthly pay away option rather than the annual compounded option.

DopeyDylanH

masonic said:

DopeyDylanH said:

masonic said:

DopeyDylanH said:

My original question was not about the ombudsman though, it was about whether cheques are sent for any other ISA not with Barclays.

It is still common practice for a bank to repay money to a saver via cheque when they have not nominated another account to receive the payment. It is just unusual for a customer not to provide these details when setting up such an arrangement.

There was another thread recently where the poster had opened a one year fix and was dumbfounded that the interest wasn't being paid out to them. They too made an error in specifying how interest should be paid.

All ISA's I've had have generally asked 2 clear questions.  Interest paid Annually or Monthly and into the ISA (assumed!) or to an external account.  I was asked just the first question.  And I did have an account with them, the ISA itself (like I've had with all other ISA providers before).

The question they should have asked is whether you want the interest added to the ISA or paid to another account. The answer to this question dictates whether the interest is annual or monthly. It is immaterial whether interest is paid monthly or annually when it is added to a fixed term ISA.

The ISA itself was not open when you applied for it, so it could not have been used as the nominated account during the application. You've not said whether or not you held a Barclays account at the time you applied for the ISA, but if you did, that would have been used as the nominated account. If you subsequently closed it, that would lead to the situation you describe. If, however, you went to Barclays to open the ISA not having any other accounts with them, then the adviser you spoke to ought to have flagged that there was nowhere for the interest to be paid if you selected the monthly pay away option rather than the annual compounded option.

In my case I had to go in branch to open the ISA as I'd tried opening a current account (using the app) in order to expedite opening of the ISA.  This failed (allegedly due to me using my driving license for security rather than my passport, though both were an option so both should work, and no-one has confirmed the reason officially, just the special advisers thoughts).  I've not opened any account face to face in years, and believe the special adviser should have flagged this cheque sending unusual practice.