Virgin Money ISA closue

mar7t1n

A few years ago, I opened a VM ISA. By the time it was actually set up, the rates had changed and I decided not to move the money. The account has never had a transaction and has a £0 balance.

Recently, I tried to pay into it but was told it was no longer available. So I asked for it to be closed. VM’s reply? They can’t close it online — I must either visit a branch in person or write to them by post, at my own expense of course.

If they want to keep a zero-balance account on their books indefinitely, that’s up to them. Any other bank would take closure instructions digitally or over the phone. So, sorry VM, you lost my business and it encouraged me to switch all my other accounts as well. I hope when Nationwide fully completes the takeover, they’ll put an end to these unnecessary hoops. I was only trying to help keep their records tidy.

clairec666

Most banks would have closed the account automatically if it wasn't funded within a certain period

35har1old

mar7t1n said:

A few years ago, I opened a VM ISA. By the time it was actually set up, the rates had changed and I decided not to move the money. The account has never had a transaction and has a £0 balance.

Recently, I tried to pay into it but was told it was no longer available. So I asked for it to be closed. VM’s reply? They can’t close it online — I must either visit a branch in person or write to them by post, at my own expense of course.

If they want to keep a zero-balance account on their books indefinitely, that’s up to them. Any other bank would take closure instructions digitally or over the phone. So, sorry VM, you lost my business and it encouraged me to switch all my other accounts as well. I hope when Nationwide fully completes the takeover, they’ll put an end to these unnecessary hoops. I was only trying to help keep their records tidy.

Think again Nationwide doesn't either no options to close some  accounts online branch visit only no mention of being able to close by post

Ch1ll1Phlakes

35har1old said:

mar7t1n said:

A few years ago, I opened a VM ISA. By the time it was actually set up, the rates had changed and I decided not to move the money. The account has never had a transaction and has a £0 balance.

Recently, I tried to pay into it but was told it was no longer available. So I asked for it to be closed. VM’s reply? They can’t close it online — I must either visit a branch in person or write to them by post, at my own expense of course.

If they want to keep a zero-balance account on their books indefinitely, that’s up to them. Any other bank would take closure instructions digitally or over the phone. So, sorry VM, you lost my business and it encouraged me to switch all my other accounts as well. I hope when Nationwide fully completes the takeover, they’ll put an end to these unnecessary hoops. I was only trying to help keep their records tidy.

Think again Nationwide doesn't either no options to close some  accounts online branch visit only no mention of being able to close by post

I believe most accounts can be closed online with Nationwide. The only accounts I know that have to be closed in branch are fixed rate bonds and fixed rate ISAs, and that's for early closure.

I assume the OP's account was a easy access ISA as they say the rate dropped. This type of account could be closed online with Nationwide.

epm-84

35har1old said:

mar7t1n said:

A few years ago, I opened a VM ISA. By the time it was actually set up, the rates had changed and I decided not to move the money. The account has never had a transaction and has a £0 balance.

Recently, I tried to pay into it but was told it was no longer available. So I asked for it to be closed. VM’s reply? They can’t close it online — I must either visit a branch in person or write to them by post, at my own expense of course.

If they want to keep a zero-balance account on their books indefinitely, that’s up to them. Any other bank would take closure instructions digitally or over the phone. So, sorry VM, you lost my business and it encouraged me to switch all my other accounts as well. I hope when Nationwide fully completes the takeover, they’ll put an end to these unnecessary hoops. I was only trying to help keep their records tidy.

Think again Nationwide doesn't either no options to close some  accounts online branch visit only no mention of being able to close by post

If you open an online account with Nationwide you can definitely close it online. I've held a few of their regular saver accounts and each time the product has matured I've been able to close online. No phone call, signed form or branch visit required.

flaneurs_lobster

mar7t1n said:

So, sorry VM, you lost my business and it encouraged me to switch all my other accounts as well. I hope when Nationwide fully completes the takeover, they’ll put an end to these unnecessary hoops. I was only trying to help keep their records tidy.

VM have a regular saver paying 6.5% on £250/mth for a year, FIXED.

Are you saying you wouldn't open this account because you don't like empty, open accounts?

morgmonster

mar7t1n said:

A few years ago, I opened a VM ISA. By the time it was actually set up, the rates had changed and I decided not to move the money. The account has never had a transaction and has a £0 balance.

Recently, I tried to pay into it but was told it was no longer available. So I asked for it to be closed. VM’s reply? They can’t close it online — I must either visit a branch in person or write to them by post, at my own expense of course.

If they want to keep a zero-balance account on their books indefinitely, that’s up to them. Any other bank would take closure instructions digitally or over the phone. So, sorry VM, you lost my business and it encouraged me to switch all my other accounts as well. I hope when Nationwide fully completes the takeover, they’ll put an end to these unnecessary hoops. I was only trying to help keep their records tidy.

The advisor told you wrong. I asked the same question and was told phone, write, or visit branch. I rang them and closed my ISA (exact same situation as you) over the phone on Monday, along with my 10% reg saver that ended recently and a few other random low interest savings accounts I'd accumulated with them over the last year. Kept our joint M club account and a single current account for the reg saver money to go into. Very quickly done and the guy on the phone was efficient and friendly. 
So to protest over not being able to close your account online / phone (which by the way I would totally agree with), you er... closed all your accounts?! :-)

mar7t1n

I had a RS 10% account. 30 mins on hold.... to close it to be able to access the final interest as you can't just close it online! Why!?
Anything else we can do for you.... Yes. I asked them to close a saver that the M Current account required. They did do that over the phone.
I asked them to close the afformented ISA - they say they can't!!
TBF the Barclays £175 switch offer had already convinced me I was going to switch something. VM's policy convinced me it was going to be them. So that auto closed the current account, no letters or branch visit required.

You shouldn't be blinded by the headline rate.
£250 a month at 6.5% vs the same £3000 into a fixed rate at 4% - the lump sum wins out at all tax rates. Even if compared directly the additional interest becomes marginal vs the barrier created in getting the money back. Shop around and VM really is not a compelling rate at all a 6.5%.

And finally - look at all the fuss they created. If you want people's money - make it easy for them to get it back, and they'll surely give you more!

clairec666

mar7t1n said:

You shouldn't be blinded by the headline rate.
£250 a month at 6.5% vs the same £3000 into a fixed rate at 4% - the lump sum wins out at all tax rates. Even if compared directly the additional interest becomes marginal vs the barrier created in getting the money back. Shop around and VM really is not a compelling rate at all a 6.5%.

Without getting into a debate about whether 6.5% or 4% is better (clue - higher rate = more interest), it's up to each individual whether it's worth for the extra admin involved. If you end up wasting an hour or two of your time having to phone customer services, you might decide it's not worth it. Personal choice.

mar7t1n

clairec666 said:

Without getting into a debate about whether 6.5% or 4% is better
(clue - higher rate = more interest)

Sorry, I think you may have misread my point. What I mean is:

• If you put the whole £3,000 into a fixed-rate account in month 1 at 4%. [Interest £120.00]

• Drip-feeding the same £3,000 into a regular saver at £250 a month at 6.5%. [Interest £105.63]

With regular savers, the headline rate can be misleading. Because you only build up the balance gradually, the net effective APR is roughly half the quoted rate.

That’s why it’s important to run the actual numbers based on the rates available at the time, rather than just chasing a headline rate. Once you factor in tax, and admin - which wins is entirely down to what you can get at the time.

slinger2

mar7t1n said:

clairec666 said:

Without getting into a debate about whether 6.5% or 4% is better
(clue - higher rate = more interest)

Sorry, I think you may have misread my point. What I mean is:

• If you put the whole £3,000 into a fixed-rate account in month 1 at 4%. [Interest £120.00]

• Drip-feeding the same £3,000 into a regular saver at £250 a month at 6.5%. [Interest £105.63]

With regular savers, the headline rate can be misleading. Because you only build up the balance gradually, the net effective APR is roughly half the quoted rate.

That’s why it’s important to run the actual numbers based on the rates available at the time, rather than just chasing a headline rate. Once you factor in tax, and admin - which wins is entirely down to what you can get at the time.

Personally I've never understood this argument.

Suppose you open a 4% account with £1, then 364 days later top it up to £3,000, the day before the interest is paid. Would you expect £120 interest? Surely not. Why would you expect to get the 4% interest on the final balance?