Transferring a Cash ISA

Artica

Am I the only one who feel how unsecured the system to transfer a cash ISA is? So I have a cash ISA with Lloyds that matured. Looked around and found a good rate with Tesco. Open the ISA and requested the details to transfer. Received a letter with some forms.

They are asking to post to them some forms which include my name, signature, accounts numbers, date of birth, National Insurance Number, Address, email address, tel number... Effectively the perfect pack for someone to steal someone else identity.
At a time where everything is made more secured regarding banking, this way of doing this seems very backwards to me. 

Top this with the fact that one I called Tesco I spoke to someone who sounded like I woke her up, it really does not make me feel confident in transfering my money to them.

I know it is not millions of £ like they are used to deal with but to me, it is a lot of money and security and confidence should be a part on choosing  who I put my money with.
I think I will stick with Lloyds for a rate which is only 0.2% under what Tesco was offering me.

Am I the only one who find this transfer service inadequate?

mebu60

Did you open the Tesco Cash ISA online? Every organisation I have used has captured the transfer-in details as part of the online application process. Did Tesco not have this facility (assuming you opened it online)?

refluxer

Do you have other accounts with Tesco ? If not, then part of the reason why you need to provide so much info is to prove your identity. Saying that, I've had accounts with Tesco in the past and do seem to recall that they still deal with a lot of correspondence by post (including the need for a 'wet signature').

I don't think your current experience is representative of cash ISA transfers in general - you've just unfortunately chosen an ISA provider (as a new customer) who isn't as slick as they should be. These days, most of my cash ISA transfers are between banks and building societies that I'm already a member of, so transfers are usually quick and electronic (take a few days and carried out wholly online) - the only time I ever have to post an ISA transfer form off is if one of the ISA providers doesn't use the BACs ISA transfer service which, thankfully, is rare these days (this mostly affects the smaller building societies). 

In terms of fixed rate cash ISAs, there are dozens of reputable ISA providers paying higher rates than either LLoyds or Tesco, so I would go with one of them. If you choose carefully, most should be able to complete new customer ID checks and transfer ISAs online and won't require any forms to be posted.

For a list of ISA providers who do online transfers, scroll down to 'Which providers can I transfer my ISA from ?' on this page : https://www.cynergybank.co.uk/personal/isa-transfers

Artica

mebu60 said:

Did you open the Tesco Cash ISA online? Every organisation I have used has captured the transfer-in details as part of the online application process. Did Tesco not have this facility (assuming you opened it online)?

Yes I opened it online and they don't have this facility. They send you form to send back in the post which I find really odd. From what I have seen some other banks have the facility to do this online but apparently they don't. 

Artica

refluxer said:

Do you have other accounts with Tesco ? If not, then part of the reason why you need to provide so much info is to prove your identity. Saying that, I have had accounts with Tesco in the past and do seem to recall that they still deal with a lot of correspondence by post (including the need for a 'wet signature').

These days, most of my cash ISA transfers are between banks and building societies that I'm already a member of, so transfers are usually quick and electronic (take a few days and carried out wholly online) - the only time I ever have to post an ISA transfer form off is if one of the ISA providers doesn't use the BACs ISA transfer service which, thankfully, is rare these days (this mostly affects the smaller building societies). 

In terms of fixed rate cash ISAs, there are dozens of reputable ISA providers paying higher rates than either LLoyds or Tesco, so I would go with one of them. If you choose carefully, most should be able to complete new customer ID checks and transfer ISAs online and won't require any forms to be posted.

The ID check is one thing, that just a form with my signature on so that's fine I would not have minded (though not ideal) but in the same envelop they ask me to send all these other details which I really find unsecured. From what Tesco told me they don't have the BACs ISA transfer service and they only do this through the post. 
I found a 1 year fixed with Lloyds which seems ok, I think it I will roll with it as I am not talking of 1M£ (I wish!). Thank you

refluxer

Artica said:

The ID check is one thing, that just a form with my signature on so that's fine I would not have minded (though not ideal) but in the same envelop they ask me to send all these other details which I really find unsecured. From what Tesco told me they don't have the BACs ISA transfer service and they only do this through the post. 

I agree about the security aspect - I've had letters and cards arrive here that have been opened and resealed in the past. The service isn't quick either - even 1st class mail takes around a week to arrive here (or at the destination when I post something). Sadly, the Royal Mail postal service is no longer fit for purpose IMO (for letters at least - they do seem to prioritise parcels) and I always try to avoid using it if there is an alternative option.

Tesco are on the list of ISA providers who use the BACs ISA transfer service, so it's odd they would tell you otherwise but, as I mentioned, they are a bank who do still seem to like their paper forms in my experience.