Zero interest on money in “cash hub”

gpp101

In the six months since my Mothers death, many of her fixed term savings plans have matured.
The capital and interest are automatically returned to the “cash hub”, from where, were she still alive, they would be reinvested.
Because the account is frozen, pending grant of probate, the company are refusing to move these considerable funds to her “fund and share account”, which does attract interest.
By my rough estimate, her beneficiaries have already lost several thousand pounds of interest.
Presumably the company in question is able to play with this money itself and generate a return, until it is required to release it.
This doesn’t feel quite right.

DavidT67

Seems perfectly reasonable and in line with industry best practice.

All financial instiutions will need probate for larger sums, all will freeze accounts on death notification, none will take instructions to move large sums without the executor having probate.

Hoenir

gpp101 said:

Presumably the company in question is able to play with this money itself and generate a return, until it is required to release it.

No,  these are customer deposits not company funds. Have to be treated as such and kept ring fenced. At best the money will be placed on overnight deposit. Where corporate rates are far lower than retail. The interest received will be used to fund the ongoing administration of the business. 

 

WYSPECIAL

Hargreaves Lansdown? They're probably barely breaking even on the cost of maintaining the account.