Northern Rock,new account.

gwapenut

DON'T DO BACS!

I have just spoken to someone who said it "should be ok". I asked her to doublecheck, and she established that the cutoff date is TOMORROW and that BACS will NOT be ok.

I have asked their complaints department to get in touch with me ... at least I can make it cost them more than the pound I have invested with them.

RayWolfe

So exactly what is the point of opening a savings account with £1? Particularly a fixed rate account that you know is subject to immediate closure when they have achieved their target.

Beate

And I was just going to ask you guys what you were doing - BACS or CHAPS! My bank charges £30 for the latter, grrr.

CHAPS Transfer (Clearing House Automate Payment System)
Sort Code: 08-02-65
Account Number: 50048407
Reference: Your Fixed Rate Access Bond Account Number and your name.

gwapenut

RayWolfe wrote: »

So exactly what is the point of opening a savings account with £1? Particularly a fixed rate account that you know is subject to immediate closure when they have achieved their target.

Saves having 10K sat in limbo and potentially not earning interest while the usual inept bureaucracy that surrounds most attempts to do anything nowadays. Trying to change utility provider, apply for a credit card, etc, etc - more often than not I experience "complications" which mean a simple transaction can take several phone calls to follow up.

I also figured with them trying to raise £30 billion that perhaps the account may take longer than 10 days to meet their targets.

Bad call on my part, but please don't knock my strategy. Each to their own.

gt94sss2

gwapenut wrote: »

I have just spoken to someone who said it "should be ok". I asked her to doublecheck, and she established that the cutoff date is TOMORROW and that BACS will NOT be ok.

I presume posting NR a cheque to arrive tomorrow would be ok? - as they would receive the cheque even though it won't have cleared..

Regards
Sunil

Beate

I don't think so as I was told that the funds have to have cleared, whether cheque or transfer, it is not enough for the money being processed at cut-off date.

merlinthehappypig

Beate wrote: »

And I was just going to ask you guys what you were doing - BACS or CHAPS! My bank charges £30 for the latter, grrr.

How much are you thinking of investing, beate, if you don't mind my asking?

You have to take into account the interest lost whilst the money is in the BACS system and the future difference in interest between where the money is now and what you will get with NR.

In my case, though Sainsburys didn't charge as much for the CHAPS, the CHAPS fee was less than a day's interest. I'd have lost at least three days in the BACS transfer normally and, as this was Friday, five days in this instance.

You might find that the CHAPS fee is money well spent.

Beate

£16,000, having already put £4,000 into the bond. I have just been trying to figure out the interest business as well. If it doesn't go into Northern Rock, it will go to Bradford & Bingley, which is 5.52% net against 4.98% net, but of course I have already money in both accounts so it's difficult to figure out the exact interest payments against loss of interest in transfer and CHAPS payment. I still stand by my decision to only make the money available on 1 Feb as I would have lost over £60 on interest for January otherwise, but of course that gain will half if I pay the CHAPS fee. On the other hand, as you say, CHAPS is instant and therefore saves about 5 days interest, not to mention that it might be the only means of getting the money into the bond at all now, and B&B interest rates might go down while Northern Rock will stay fixed for a year. I suppose I have got no other choice....

Beate

Blast. My bank's cut-off point for same-day CHAPS transfers was at 11am. I am screwed.

merlinthehappypig

Beate wrote: »

Blast. My bank's cut-off point for same-day CHAPS transfers was at 11am. I am screwed.

Sorry to hear that, Beate.

Sainsburys fee was £18 and the cut-off was 2.30. Why on earth can't they all be the same.