Depositing funds into NS&I Guaranteed Growth Bond

Hattie627

I've topped up my AJ Bell dealing and SIPP accounts from my Santander current account using the "pay by bank" (or whatever it's called) method. The cash appears within a few minutes in the destination account. I've also paid HMRC using this method. It's much easier than setting up FP to a new payee and it's faster than debit card. It's a pity that there doesn't seem (?) to be one recognised name for this method of payment. This may be causing the confusion or reluctance to use. As I understand it, "open banking" is a different thing, whereby you can see (and transact on? not sure) accounts on a different provider's website.   

eskbanker

Hattie627 said:

I've topped up my AJ Bell dealing and SIPP accounts from my Santander current account using the "pay by bank" (or whatever it's called) method. The cash appears within a few minutes in the destination account. I've also paid HMRC using this method. It's much easier than setting up FP to a new payee and it's faster than debit card. It's a pity that there doesn't seem (?) to be one recognised name for this method of payment. This may be causing the confusion or reluctance to use. As I understand it, "open banking" is a different thing, whereby you can see (and transact on? not sure) accounts on a different provider's website.

Open banking covers both of those scenarios, as explained in the articles linked earlier.

Albermarle

friolento said:

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/

Thanks for the feedback. Every day is a schoolday !

The 7 day debit card delay seems to be just an NS & I thing though ?
I do not remember seeing any delays adding money by debit card to other savings providers or investment platforms.

friolento

Albermarle said:

friolento said:

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/

Thanks for the feedback. Every day is a schoolday !

The 7 day debit card delay seems to be just an NS & I thing though ?
I do not remember seeing any delays adding money by debit card to other savings providers or investment platforms.

The 7 days at NS&I appear to be unique, and extreme. 2-3 days max in other places, some even instantly (e.g. in investment platforms). The credit / interest start date varies by provider, and isn't actually too bad at NS&I, as you get interest from the day of deposit with them. It's just a PITA that you have to wait 7 days before you can move your funds out of the NS&I Direct Saver. 

With the demise of the Halifax Reward programme, I don't now have much if any need for deposits by debit card. I will still keep the Direct Saver as it's useful for getting money out of the Premium Bonds. Whilst it takes 2 or 3 working days to withdraw from PBs to a current account, it can be done next working day if you transfer from PB to Direct Saver, and from there to the current account.

Tudmobile1960

I know nothing about open banking, apart from what I've just read in the links provided by @friolento so apologies for a possibly stupid question:

If talking about straight transfers from my account in one bank to my account in another one, which I do using the faster payment option on my banking app, what would be the benefit of open banking? Does it for example allow transfers without limits?

ColdIron

One of the things I like about it is the security. When 'pushing' the money using FP you have to enter a sort code and account number which you can get wrong even with CoP. With OB you are 'pulling' money into your destination bank. No account numbers involved and you need to logon to both sending and receiving banks. It's also cuts down on APP fraud as the scammer can't give you their account details, and they would have to be logged into your account to initiate it anyway

friolento

To add to the brilliant explanation @ColdIron has posted: the daily limits are likely to be the same for FP and for OB. If you need higher amounts, CHAPS might be the right answer for you. Best to ask your bank if you need a high amount.