Depositing funds into NS&I Guaranteed Growth Bond

Kim_13

friolento said:

Swipe said:

Call me old school, but personally I'd avoid bank transfers to NS&I. I hate to imagine the timescale and hassle if anything happened to go wrong for whatever reason.

OK, I will call you old school. Mainly because you have not provided any evidence that 1) "pay by bank" is more errorprone than other payment methods, 2) what time and effort it would take if anything did go wrong, and 3) because you entirely ignore the advantages in terms of timescales, effort, and security "pay by bank" offers over other payment methods.

No one knows the answer to 2 until it happens to them, and there can be some value in avoiding that.

I am perfectly happy to pay by bank transfer or debit card. Of those clearly bank transfer will start earning interest sooner, but there is a possibility that the money will end up in the wrong place if you proceed without a COP match. If NS&I need the one and only payment making before a COP match is returned, then I am paying by debit card and they only have their own system to blame if they would prefer payments by bank transfer.

ColdIron

Kim_13 said:

friolento said:

Swipe said:

Call me old school, but personally I'd avoid bank transfers to NS&I. I hate to imagine the timescale and hassle if anything happened to go wrong for whatever reason.

OK, I will call you old school. Mainly because you have not provided any evidence that 1) "pay by bank" is more errorprone than other payment methods, 2) what time and effort it would take if anything did go wrong, and 3) because you entirely ignore the advantages in terms of timescales, effort, and security "pay by bank" offers over other payment methods.

Of those clearly bank transfer will start earning interest sooner, but there is a possibility that the money will end up in the wrong place if you proceed without a COP match.

Are you confusing Pay By Bank (AKA Open Banking) with Faster Payments?

There is no CoP with Pay By Bank (or debit card transactions for that matter). CoP is usually used for setting up new payees for traditional bank transfers

With Pay By Bank there is no possibility of the money going into the wrong place as you are 'pulling' the money into the destination account, NS&I in this case, and logging into the source account to authorise the payment. It's one of the reasons that PBB is more secure and less error prone

Kim_13

ColdIron said:

Kim_13 said:

friolento said:

Swipe said:

Call me old school, but personally I'd avoid bank transfers to NS&I. I hate to imagine the timescale and hassle if anything happened to go wrong for whatever reason.

OK, I will call you old school. Mainly because you have not provided any evidence that 1) "pay by bank" is more errorprone than other payment methods, 2) what time and effort it would take if anything did go wrong, and 3) because you entirely ignore the advantages in terms of timescales, effort, and security "pay by bank" offers over other payment methods.

Of those clearly bank transfer will start earning interest sooner, but there is a possibility that the money will end up in the wrong place if you proceed without a COP match.

Are you confusing Pay By Bank (AKA Open Banking) with Faster Payments?

There is no CoP with Pay By Bank (or debit card transactions for that matter). CoP is usually used for setting up new payees for traditional bank transfers

With Pay By Bank there is no possibility of the money going into the wrong place as you are 'pulling' the money into the destination account, NS&I in this case, and logging into the source account to authorise the payment. It's one of the reasons that PBB is more secure and less error prone

No, I have no interest in using Open Banking so simply choose based on the risks and benefits of the other methods in a given situation.

If anyone has a debit card that still offers something for paying NS&I, then they would lose out on that by going down the Open Banking route.

Albermarle

ColdIron said:

Kim_13 said:

friolento said:

Swipe said:

Call me old school, but personally I'd avoid bank transfers to NS&I. I hate to imagine the timescale and hassle if anything happened to go wrong for whatever reason.

OK, I will call you old school. Mainly because you have not provided any evidence that 1) "pay by bank" is more errorprone than other payment methods, 2) what time and effort it would take if anything did go wrong, and 3) because you entirely ignore the advantages in terms of timescales, effort, and security "pay by bank" offers over other payment methods.

Of those clearly bank transfer will start earning interest sooner, but there is a possibility that the money will end up in the wrong place if you proceed without a COP match.

Are you confusing Pay By Bank (AKA Open Banking) with Faster Payments?

There is no CoP with Pay By Bank (or debit card transactions for that matter). CoP is usually used for setting up new payees for traditional bank transfers

With Pay By Bank there is no possibility of the money going into the wrong place as you are 'pulling' the money into the destination account, NS&I in this case, and logging into the source account to authorise the payment. It's one of the reasons that PBB is more secure and less error prone

Presume you do not have to be an active participant in Open banking for this one off transaction to work? ( I do not have open banking so have no real idea how it works).
Are there any savings/investment providers operating this 'Pay by Bank' system ? Just asking out of interest.

friolento

Swipe said:

Anyone else I would be less sceptical about. It's the fact that it's NS&I that puts me off.

I do understand your sentiment as the NS&I website is quite clunky. However, for "Pay By Bank" NS&I are simply using the services of one of the Open Banking accredited providers. A bit like they are using the services of Mastercard or VISA when taking debit card payments.Your money arrives in no time into your Direct Saver, and you can then use it immediately for transfers to other NS&I accounts, or to withdraw. None of the ridiculous minimum 7 day waiting that come with debit card deposits.

I have been using Open Banking extensively to move money from my current accounts into savings accounts, whenever that option was available, incl into NS&I. I also pay my tax bill with Open Banking. HMRC has been offering Pay by Bank as a way to make tax payments online since 2021. According to a government report in November 2024, HMRC had taken more than 10m payments worth almost £33bn through Open Banking. 

Much the same technology is behind the aggregation services offered by most current accounts ("Have got accounts with other providers? Add them here" etc). 

Be a devil. Give it a try sometime and pay £1 into your NS&I Direct Saver with "Pay By Bank". 

friolento

Albermarle said:

ColdIron said:

Kim_13 said:

friolento said:

Swipe said:

Call me old school, but personally I'd avoid bank transfers to NS&I. I hate to imagine the timescale and hassle if anything happened to go wrong for whatever reason.

OK, I will call you old school. Mainly because you have not provided any evidence that 1) "pay by bank" is more errorprone than other payment methods, 2) what time and effort it would take if anything did go wrong, and 3) because you entirely ignore the advantages in terms of timescales, effort, and security "pay by bank" offers over other payment methods.

Of those clearly bank transfer will start earning interest sooner, but there is a possibility that the money will end up in the wrong place if you proceed without a COP match.

Are you confusing Pay By Bank (AKA Open Banking) with Faster Payments?

There is no CoP with Pay By Bank (or debit card transactions for that matter). CoP is usually used for setting up new payees for traditional bank transfers

With Pay By Bank there is no possibility of the money going into the wrong place as you are 'pulling' the money into the destination account, NS&I in this case, and logging into the source account to authorise the payment. It's one of the reasons that PBB is more secure and less error prone

Presume you do not have to be an active participant in Open banking for this one off transaction to work? ( I do not have open banking so have no real idea how it works).
Are there any savings/investment providers operating this 'Pay by Bank' system ? Just asking out of interest.

You don't have to be a member of anything. You do need your current account on a banking app though. You then just make a few clicks and your money is in NS&I. Sometimes instantly, sometimes it takes a couple of hours, but your money is then instantly available, no 7 day waiting time like you have with card deposits.

Yes, there are other providers who offer deposits by Open Banking. Gatehouse, Atom, YBS, Nationwide, HL, Stripe, AMEX, HMRC spring to mind but there are others, including those new-fangled automatic savings providers (which personally don't use as they don't suit my savings style). It's called different things by different providers.  E.g. YBS call it "instant bank transfer". 

Quite a few forumites also profit from Open Banking via the Yougov bribe you may have come across, although this doesn't involve money being transferred. All the "show your other current accounts here" available with many current account providers also use Open Banking - again, no money transfer is involved (yet...) in this implementation of Open Banking.

Also: https://www.moneysavingexpert.com/banking/open-banking/ and https://www.openbanking.org.uk/what-is-open-banking/

PloughmansLunch

Is an Open Banking transfer restricted by any limits? I know of someone who could really benefit from sending the proceeds of a matured bond to NS&I that exceeds their usual bank's daily FP limit 

ColdIron

Albermarle said:

ColdIron said:

Kim_13 said:

friolento said:

Swipe said:

Call me old school, but personally I'd avoid bank transfers to NS&I. I hate to imagine the timescale and hassle if anything happened to go wrong for whatever reason.

OK, I will call you old school. Mainly because you have not provided any evidence that 1) "pay by bank" is more errorprone than other payment methods, 2) what time and effort it would take if anything did go wrong, and 3) because you entirely ignore the advantages in terms of timescales, effort, and security "pay by bank" offers over other payment methods.

Of those clearly bank transfer will start earning interest sooner, but there is a possibility that the money will end up in the wrong place if you proceed without a COP match.

Are you confusing Pay By Bank (AKA Open Banking) with Faster Payments?

There is no CoP with Pay By Bank (or debit card transactions for that matter). CoP is usually used for setting up new payees for traditional bank transfers

With Pay By Bank there is no possibility of the money going into the wrong place as you are 'pulling' the money into the destination account, NS&I in this case, and logging into the source account to authorise the payment. It's one of the reasons that PBB is more secure and less error prone

Presume you do not have to be an active participant in Open banking for this one off transaction to work? ( I do not have open banking so have no real idea how it works).
Are there any savings/investment providers operating this 'Pay by Bank' system ? Just asking out of interest.

You usually use it to move money between banks or other financial institutions, e,g. pay a tax bill. Most major banks support authorisation or payment requests (pulling from a vendor), not so many banks offer it to pull from another bank. Zopa is the one that springs to mind

Quite a few vendors offer it now, NS&I and HMRC are strangely ahead of the curve on this. Hargreaves Lansdown offer it for SIPP, ISA, GIA and Active Savings payments, they call it 'Easy bank transfer'

It's newish but gaining popularity so expect it to be more common for its ease of use and safety

https://truelayer.com/blog/payments/what-is-pay-by-bank/

friolento

PloughmansLunch said:

Is an Open Banking transfer restricted by any limits? I know of someone who could really benefit from sending the proceeds of a matured bond to NS&I that exceeds their usual bank's daily FP limit 

AFAIK, your usual daily current account limits apply.

There's always the tired tried and tested CHAPS for larger amounts. One or two banks are now no longer charging for CHAPS - IIRC, Barclays is one of them.

boingy

Last time around I wanted to put in quite a sum and I was impeded by my debit card limits so rather than buy multiple bonds on slightly different dates and/or cards I moved the money into a Direct Saver then bought one bond a few days later. I did the opposite when the bond matured. I already had a Direct Saver account so it was quite painless, apart from the usual (and irritating) Spanish inquisition when I wanted to move the money out. Funny how they didn't want to check the source of the funds on the way in, just on the way out.