Failed Santander ISA transfer

Martyn_H

I had an email from my new provider to say the cash ISA transfer had failed due to "lack of funds." I phoned Santander but they parroted the same line. How can a complete transfer fail due to lack of funds? This matter is now with their back office team.

I'm disappointed Santander didn't use some initiative and contact me themselves. I've also emailed the new provider with an update and they will try to get the ISA transferred again.

I shall think twice about saving with Santander in future. (Edit: would've scored through if possible in light of later info)

35har1old

Martyn_H said:

I had an email from my new provider to say the cash ISA transfer had failed due to "lack of funds." I phoned Santander but they parroted the same line. How can a complete transfer fail due to lack of funds? This matter is now with their back office team.

I'm disappointed Santander didn't use some initiative and contact me themselves. I've also emailed the new provider with an update and they will try to get the ISA transferred again.

I shall think twice about saving with Santander in future.

Martyn_H said:

I had an email from my new provider to say the cash ISA transfer had failed due to "lack of funds." I phoned Santander but they parroted the same line. How can a complete transfer fail due to lack of funds? This matter is now with their back office team.

I'm disappointed Santander didn't use some initiative and contact me themselves. I've also emailed the new provider with an update and they will try to get the ISA transferred again.

I shall think twice about saving with Santander in future.

A letter will arrive in a couple of days perhaps.

subjecttocontract

Some ISA providers have a minimum transfer amount.
As they are saying insufficient funds......are you sure you are complying with the minimum transfer amount.

subjecttocontract

.......and is the 'full amount' more than the minimum deposit required by the new ISA account provider ?

xylophone

and is the 'full amount' more than the minimum deposit required by the new ISA account provider ?

See examples here.

https://www.thisismoney.co.uk/money/saving/article-1583864/Best-savings-rates-Isas-Cash-Isa-accounts-fixed-rate-Isas.html

Martyn_H

^ The minimum deposit is £1, so yes.

masonic

It is the new provider's responsibility to manage the transfer and communicate updates to you. The other way a transfer can fail due to lack of funds is if a balance greater than the ISA balance specified in the instructions from new provider to old provider. The new provider, which you haven't named, should be able to provide you with more information about the failure. It is their responsibility to work with Santander to deliver an acceptable outcome and you should not need to contact Santander directly.

Martyn_H

^ Thank you very much for clarifying who has responsibility for what.

There would've been an option for either a partial or full transfer. I opted for a full transfer, therefore specifying the exact amount I'd like to transfer is irrelevant.

This is why I'm having difficulty understanding the phrase "lack of funds". It's not as though I've requested a transfer of, say £1000 when there's only £500 in the ISA.

xylophone

https://oaknorth.co.uk/faqs/personal/isas/#:~:text=Yes.,the transfer on your behalf.

Do you accept transfers in/out for Cash ISAs?

Yes. You can transfer existing Cash ISAs that you hold with other providers into your OakNorth Cash ISA with a minimum transfer amount of £1,000. We will contact your existing Cash ISA provider and arrange the transfer on your behalf. As per HMRC and industry guidelines: Transfers may take up to 15 business days If you hold a Cash ISA with another provider from the current tax year, you will have to transfer your entire balance including interest to your OakNorth Cash ISA as part of your application If you would like to transfer in your Cash ISAs from previous years, you can transfer all or part of your balance to your OakNorth Cash ISA. These funds will not count towards your ISA allowance for the current tax year. To arrange a transfer in to your OakNorth Cash ISA account from your existing provider please submit an application for the OakNorth Cash ISA that you would like to open. You will be able to provide the details of the existing Cash ISA you would like to transfer to OakNorth within the application. Please note, ISA transfers can only be submitted through our website.


OP see above - did you transfer in at least £1000?

masonic

Most likely there has been an error made in the paperwork at some stage. You should carefully check with OakNorth all of the details supplied in the transfer request. If the correct account has been specified, and a transfer of the full balance (without specifying a value), then it should not have failed and they should resubmit it.

The only reason for you to contact Santander is if there may be another reason why they could have frozen the funds, such as you having defaulted on a debt which they intend to set off with your savings, but I think you'd have already put 2+2 together if that was a possibility.