Shawbrook Bank - how do they get away with it?

JGB1955

My Shawbrook ISA was transferred within 24 hours of it maturing. I had given them 3 weeks notice. It esrned 11p interedt in that 24 hours. No complaints from me!

artyboy

in the past when I've transferred cash ISAs, the receiving account has always paid interest from shortly after the transfer was initiated, even if the funds hadn't yet been received - isn't that the norm?

masonic

https://forums.moneysavingexpert.com/discussion/comment/81963322#Comment_81963322

Quite a few of the top payers at the moment don't adhere to best practices. Some even delay paying interest until days after the balance lands in their holding account.

mon3ysav3r

Yes the default on maturity is to transfer to an ISA with a terrible 0.1% rate, BUT one of the maturity options was a slightly better Shawbrook Bank Easy Access ISA Account Issue 33 at 2.70%, which is the one I choose while the ISA transfer out is happening to a different institution (with better rates).

Alzire

It's the 0.1% that I really dislike. It's a bucket to catch anyone who isn't on top of things and to make higher profits. It would be much better customer service to move it by default into the easy access ISA. Then Shawbrook would not need to maintain and service the additional maturity account and customers that end up there would not feel so 'cheated'. It would be interesting to see how much they make from it. They aren't alone in using this sort of tactic sadly.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81963009#Comment_81963009

Although there are threads on the forum about ISA transfer problems, I do not recall any other threads mentioning this problem with Shawbrook, and if it was a regular occurrence I am sure we would have seen more threads about it . So sounds like something has gone wrong specifically in your case.

maman

Although this is a thread about Shawbrook and ISA transfer, it's commonplace for any number of banks to transfer money to carp accounts while pending. In my experience, this often happens when a fixed term savings accounts come to an end. It's in a bank's interest (literally!) to choose the worst paying account even when other suitable 'temporary' accounts are available. I have questioned this with banks and they tell me it's while customers choose what do do with the money. Surely no customer would choose the worst paying account while they decide.🤔

Incidentally, I've used Shawbrook and had no issues with ISA transfer.

masonic

https://forums.moneysavingexpert.com/discussion/comment/81963592#Comment_81963592

There has been at least one upheld Financial Ombudsman complaint discussed recently where the complainant successfully argued unfair detriment due to a product being rolled over into a 0.1% (or similar derisory rate).

Under the consumer duty, a provider should at least default to their best available easy access rate.

mon3ysav3r

Another institution that do something similar at maturity of a fixed term cash ISA are Kent Reliance, the KR Cash ISAs offered all have a penalty clause that after 14 days any closure or withdrawal requests will incure an interest charge, they also don't offer their best rate Cash ISAs on the maturity form.

I found the only way to get a totally easy access cash ISA with no penalty clause is to choose “Transfer to another ISA provider” EVEN if you intend to move to a new Kent Reliance cash ISA (which you have to open, and then PM them to say perform an ISA transfer from KR to KR).

NewPieman

I had a Sbrook ISA maturing 14/4…….

Had Kent Reliance request last week for the funds (which was set to "after maturity") - Sbrook let me know they have received it and put it on hold until maturity.

Email from Sbrook 14/4 0725 - "We have received your transfer request"……

Email today from Sbrook 15/4 1130 - "We have transferred it to KR"

I find that quite acceptable personally……….