Common Gripes Opening Accounts

Alpine_Star

I currently have fixed rate savings and cash ISA accounts across nine banks and open around two new accounts per year.

Here are the common gripes I have when opening accounts with banks for the first time:

1) It's often never clear if I can send a test payment (of say £10) to satisfy myself that the payee details are correct before fully funding the account. The T&Cs often refer to a minimum balance before interest starts to be earned but not minimum funding payment amounts.

2) At least on my Nat West nominated account, it asks if the new payee is a personal or business account. I never know what to put and when I asked Nat West, they didn't know either! So I usually choose 'business'.

3) On new payees, Nat West always ask for the EXACT name of the account holder but the payee bank often doesn't provide the exact name. As a consequence of this and point 2), it's rare that Nat West confirms verification of the payee.

4) Banks usually don't tell you if they send text confirmations of funding payments before making one for the first time, so I usually have to go through the laborious process of logging into my new accounts multiple times to check if it got there.

Rant over!

subjecttocontract

You weren't expecting things to be perfect, were you ?

ChilliBob

I'm with NatWest, I always choose personal with this situation, seems to work fine. 

Only some banks let you check the details, and not so many of the newer ones I find. If it's one that checks it's usually only one vsrient of my name that's needed to make it pass a check. 

I guess you have to way up if the frustrations are worth the benefits!

If it was super easy I guess everyone would do it. There's a certain degree of leg work involved, you just need to choose when to stop. I draw the line at regular savers myself - low volumes of cash and faff to move it around - if I had more time, perhaps, but now, nope! 

eskbanker

Alpine_Star said:

3) On new payees, Nat West always ask for the EXACT name of the account holder but the payee bank often doesn't provide the exact name. As a consequence of this and point 2), it's rare that Nat West confirms verification of the payee.

The Confirmation of Payee protocol includes a 'close match' response, which NatWest claim to support:

What should I do if I get a CoP close match?

This means that the name on the account or the account type (Personal or Business) doesn’t exactly match what you have provided.

You will be provided with a suggested name and/or account type, so please check if the suggested name provided is correct. If it doesn’t look right, or you’re not sure, contact the person or business you are trying to pay to check their details.

https://www.natwest.com/support-centre/banking-from-home/make-payments/what-is-confirmation-of-payee-cop-and-how-does-it-work.html#accordion-d4ecf47f72-item-ba0132649c

alfred64

Alpine_Star said:

2) At least on my Nat West nominated account, it asks if the new payee is a personal or business account. I never know what to put and when I asked Nat West, they didn't know either! So I usually choose 'business'.

Wrong. Should be 'personal'

ColdIron

Alpine_Star said:

2) At least on my Nat West nominated account, it asks if the new payee is a personal or business account. I never know what to put and when I asked Nat West, they didn't know either! So I usually choose 'business'.

Why?

Is it a business account or just a personal account you've nominated to send and receive money with?

Chloe_G

Referring to opening a savings account, that they can't open it unless I send a copy of my bank statement because the name on my nominated account can't be verified even though I already have two savings accounts with them with the same nominated account.