Quick question on Index-linked certificates and money transfer

ScarletBea

Hi, I've just bought some Index-linked certificates. I applied online where you pay with your debit card and it says to have the money available in your account.
However, in the confirmation email I received, it says they will send me a form that I need to sign before the application is accepted.
Therefore, because I didn't want to have that kind of money in my normal account, I transfered it back to my esavings account where the interest is higher, and I'm planning on getting it back only once I get the form and post it back.

Anybody knows if this is ok, or are they going to check first if I really have the money in my account?
Could I be refused because the money isn't in the debit card account at the moment?

Mikeyorks

ScarletBea wrote: »

Could I be refused because the money isn't in the debit card account at the moment?

I think that's quite likely. If you read the T&Cs (allied to the fact that you've already stated the funds should be in the account at the time of the online application!) :-

26. In all cases, an application to purchase is subject to acceptance by the Director: If accepted the date of purchase will be:
((b) for applications via the internet, the date your on-line application, including authority for a debit card payment, were received at NS&I.

.... it seems implicit they will take the funds whilst confirming your ID in the background? Never purchased Index linked - but the bits I've made bold equally apply to the way they work with other products.

I'd ring them and try to resolve it.

ScarletBea

Thanks, I've just put the money back (it was a transfer between accounts with same bank, so no problem).
I don't think they'd work on a weekend, but better safe than sorry, it's not a pound of 2 of lost interest that would ruin things.

Mikeyorks

I would still contact them - if they're giving you a 'value' date of today ..... it's a reasonable assumption they should attempt to get at the funds same day?

They're there until midnight :-

http://www.nsandi.com/contact/contactusbyphone.jsp

Nick_C

I applied on line on Saturday 16 June using my debit card. Money debited from my current account on Tuesday 19 June but certificate issue date is 16 June so no loss of interest.

If you have a high overdraft limit, suggest keeping enough in your current account to cover the investment - taking account of your O/D. Check on line each day and transfer funds to clear O/D on the same day that the debit hits the account.

hra_2

I asked them the same question last week, wanting to avoid losing any interest while they did the identity checks, and am pleased to say their answer was:

"Your funds must be cleared in your current account before you apply.

We will then complete an identity check and send you a confirmation letter
for signature and return. When we receive the signed letter we will arrange
your purchase, backdating it to the date you applied. Therefore, there
should be no loss of interest on your capital."

ScarletBea

Thanks all for your help.
I don't think there'll be a problem because I had the money in my account when I applied (lunch time friday). I then did the transfer into my savings account later on the friday, but it appeared with date of monday. Half an hour later I put the money back, also with date of monday. So no harm done, I believe.