Kaupthing Account Opened... now what?

fablad75

I've just received an email with my new Kaupthing Edge account number and sort code, and I'm a bit unsure about what to do next.

I've opened both ING and ICICI accounts in the past and the procedure was different - I sent off a cheque, and if I recall correctly, signed and posted off a direct debit authority form.

Kaupthing Edge, on the other hand, wants me to give my account details to my bank (Nationwide) to set up a BACS arrangement. Will my bank know what needs to be done? And how does BACS work - will it allow me to transfer money both ways? And is there a minimum opening amount?

Thank you.

jem16

Do you have Internet banking with Nationwide? If you do set it up under Payments and Transfers. You can have a single arrangement or a regular arrangement. Failing that phone nationwide and give them the details for kaupthing and they will set it up.

Bacs is just the automated clearing system - you ask nationwide to make the payment and 3.4 days later it appears in your kaupthing account. Same the other way.

It's supposed to be £1000 but I believe you can pay in less - it just won't earn any interest.

fablad75

Thank you! I've got online banking with Nationwide so I'll give it a go. Think I'll start with £1 to make sure it works before I send any more.

I haven't received the login details for my Kaupthing account yet - will there be a function in that website to do a similar BACS payment to transfer money back to my Nationwide account?

Thinking about it, doesn't using this BACS system mean that I can send money from any bank account, not just my nominated link account?

jem16

fablad75 wrote: »

Thank you! I've got online banking with Nationwide so I'll give it a go. Think I'll start with £1 to make sure it works before I send any more.

I haven't received the login details for my Kaupthing account yet - will there be a function in that website to do a similar BACS payment to transfer money back to my Nationwide account?

I would imagine so - just waiting on my login details too.

Thinking about it, doesn't using this BACS system mean that I can send money from any bank account, not just my nominated link account?

I can't see why it wouldn't although it does say to use your linked account. I'm sure others have tried it on here - do a search for kaupthing.

10_66

fablad75 wrote: »

Thinking about it, doesn't using this BACS system mean that I can send money from any bank account, not just my nominated link account?

They only allow transfers using your nominated account.

Stormy

10_66 wrote: »

They only allow transfers using your nominated account.

That’s only true for withdrawals, you can pay money in via any account which allows you to make payments using the BACS details for your Kaupthing account.

Mike

neilp

Mike, are you sure about that? I have a Kaupthing account and have been told by customer services (also it says on their website) that deposits can only be made from the nominated account. I haven't tried a BACS transfer from any other account, but did wonder (ICICI, for example, allows BACS payments from any account, but deposits by direct debit only from the nominated account).

Stormy

Ahh no, I think you are right. I just assumed that because they give you the BACS details, money could be sent from anywhere.

A quick check of the FAQ confirms what you say. Sorry for the confusion.

It does beg the question why BACS is used, why don't they set up a DD instead for deposits?

Mike

neilp

I have also wondered how and why they stop BACS deposits from other accounts. Does anyone know?

munk

Presumably it's to save money on their side (which they can then pass on to the customer in higher interest rates). There's probably some technical reason why it's easier/cheaper to just accept payments from a single linked account rather than from anywhere. Would be curious to know if anyone working at a bank that does linked accounts knows.

oscardog

My K Edge Savings a/c is up and running. Am going to put initial deposit in after pay is in!!

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