Kent Reliance Maturity warning

db3745

Just something to bear in mind when deciding on a savings provider. Kent Reliance have confirmed they will pay maturing proceeds into my nominated account within 5 working days from maturity date. As that will effectively be up to a calendar week I make it a reduction in actual interest rate from 4.51% to 4.32%.

I'm not someone who gets nit-picky about pennies, and how many hours bank transfers/payments take, but I think this is a pretty significant loss of interest, and would cost several places in interest rate best-buy tables. I haven't had any issue with Kent other than this, but I am used to receiving my cash on the maturity date, or worst case day after. Bank of India were a pain, system-wise, but I received their payments on the day, though as expected at 16.30.

I see others have mentioned similar in the past, but worth "bumping" it for future reference.

Rudyson

My experience with KR is that the funds are available the day following maturity, and that I'm able to transfer them to my nominated account myself.

EDIT. Thanks for reminding me, I have a bond with them maturing in a few days and haven't had the letter yet.

Osborneonenil

One of my fixed term accounts with KR matured yesterday and the funds were credited to my nominated account today. I have had about eight accounts with them in the last 3 or 4 years and that has always been my experience (when I haven't opted to reinvest in another fixed term).

grahamgoo

how did you calculate 4.32% ?  
I got closer to 4.42% but could be wrong!

db3745

Rudyson said:

My experience with KR is that the funds are available the day following maturity, and that I'm able to transfer them to my nominated account myself.

EDIT. Thanks for reminding me, I have a bond with them maturing in a few days and haven't had the letter yet.

I got my letter end of March, posted response 2nd April. I also received an exact duplicate on the 9th, but an email yesterday confirmed receipt of my instructions. Maturity date 17th. 

EthicsGradient

Osborneonenil said:

One of my fixed term accounts with KR matured yesterday and the funds were credited to my nominated account today. I have had about eight accounts with them in the last 3 or 4 years and that has always been my experience (when I haven't opted to reinvest in another fixed term).

Exactly the same for me for yesterday/today (which means I can't log onto their system today, since that was my only account with them - I assume they'll post me something listing the interest paid in this case; I know it, but I'd like something suitable for tax records).

Osborneonenil

EthicsGradient said:

Osborneonenil said:

One of my fixed term accounts with KR matured yesterday and the funds were credited to my nominated account today. I have had about eight accounts with them in the last 3 or 4 years and that has always been my experience (when I haven't opted to reinvest in another fixed term).

Exactly the same for me for yesterday/today (which means I can't log onto their system today, since that was my only account with them - I assume they'll post me something listing the interest paid in this case; I know it, but I'd like something suitable for tax records).

I don't think that KR routinely follow up with a closing statement or tax cert but the letter previously sent with maturity options shows the interest due to be credited and that figure has always been accurate on my accounts.

Shylock_249

I was very surprised when dealing with my wife's ISA last weekend.  We'd already opened an immediate access account with them in the last week of the last FY.  KR state that opened accounts must be funded within 7 days or they will close them (fair enough).  We opened the ISA account on the Wed/Thu before 6 Apr. On 6th Apr (1st day of the new FY) we logged on and attempted to do an internal transfer of 20k from the immediate access account into the new ISA account.  We were surprised to note that we were unable to complete the transaction on 6th because it was a weekend and the first day the funds could be moved was on Monday the 8th.  Amazing! This was an internal transfer, one of my beefs is that banks/bs treat weekends differently than any other day of the week and I recently asked a question on this forum asking if bank computers (Lloyds) take the weekend off!

grahamgoo

Shylock_249 said:

I was very surprised when dealing with my wife's ISA last weekend.  We'd already opened an immediate access account with them in the last week of the last FY.  KR state that opened accounts must be funded within 7 days or they will close them (fair enough).  We opened the ISA account on the Wed/Thu before 6 Apr. On 6th Apr (1st day of the new FY) we logged on and attempted to do an internal transfer of 20k from the immediate access account into the new ISA account.  We were surprised to note that we were unable to complete the transaction on 6th because it was a weekend and the first day the funds could be moved was on Monday the 8th.  Amazing! This was an internal transfer, one of my beefs is that banks/bs treat weekends differently than any other day of the week and I recently asked a question on this forum asking if bank computers (Lloyds) take the weekend off!

Possibly because they use a clearing bank (NatWest).
I got quite lucky - I opened an ISA the Sunday 31st March intending to fund it in the new tax year the following weekend, but of course found that I could only choose a date from Mon 8th April onwards, which was beyond the 7 day funding window (by which time rates had dropped) Anyway despite the account disappearing from my online banking for the weekend, all ended well and it reappeared with my deposit at the original rate.  KR do seem quite antiquated in many ways, but I do actually quite like them, phone support is decent when needed etc.

db3745

I'm pleased to report that I've received the funds by 10.30 a.m. on the day after maturity. On that basis I wouldn't have any qualms  about using them again, certainly for a fixed term account. 

I thought every company had to send you a P60 or make one available in your online statement file, but if your account closes as mentioned above you wouldn't be able to access your account. No matter, it's easy to keep tabs on a lump sum. 

Exactly the same for me for yesterday/today (which means I can't log onto their system today, since that was my only account with them - I assume they'll post me something listing the interest paid in this case; I know it, but I'd like something suitable for tax records).

EthicsGradient

db3745 said:

I'm pleased to report that I've received the funds by 10.30 a.m. on the day after maturity. On that basis I wouldn't have any qualms  about using them again, certainly for a fixed term account. 

I thought every company had to send you a P60 or make one available in your online statement file, but if your account closes as mentioned above you wouldn't be able to access your account. No matter, it's easy to keep tabs on a lump sum. 

Exactly the same for me for yesterday/today (which means I can't log onto their system today, since that was my only account with them - I assume they'll post me something listing the interest paid in this case; I know it, but I'd like something suitable for tax records).

As Osborneonenil said, there was the letter sent in the post with maturity options, which on the front page (which didn't need sending back) did state the interest in print, and it matched what appeared in my account when it did mature, so I think that will be sufficient should a taxman ask to see a document.