Panicking about transfer from NS&I account

Rosebud24 · 10 July 2017 at 1:38PM

My husband and I are due to complete on our house a week today. We don't currently own a house and the majority of our savings (to be used for the deposit) are in our NS&I investment accounts. I phoned NS&I a week ago to say we would be withdrawing the money and to ask how long the transfer would take. They told me "up to three working days". The money had to be withdrawn into our current account as they wouldn't pay it directly to our solicitor's account. All fine.

I calculated that if we transferred the money today (Monday), it would be in our current accounts by no later than Thursday. We could then transfer it to our solicitor's account, which our bank advised could take up to the end of the next working day (Friday). This would mean the funds were ready for our Monday morning completion.

Today I phoned NS&I and transferred the money. They then told me it would take up to five working days! I said I'd previously been told three working days and they told me that because it's more than £50,000 it's "up to five". I'm now panicking! If it takes that long the money won't be available for our completion date.

I'm posting here because I wonder if anyone has transferred more than £50k from an NS&I investment bond account, and how long it took in their experience. I'd also love to know if anyone has any bright ideas about how i can speed the process along.

Thanks for reading all this. It's my first home and I've been so excited about moving in next week!

soulsaver · 10 July 2017 at 1:56PM

Well if you've already transferred the money it will be what it will be. What method does NS&I use for the transfer?

You could try escalating it with NSI's customer service on the basis you've relied on their info. Ask if there's anything special they can do considering the implications of a late materialisation.

depending on what NS&I then say, a conversation with your conveyancer regarding a plan B if dosh doesn't show by Friday may be prudent.

Malthusian · 10 July 2017 at 2:11PM

Not sure why you didn't ask them to transfer the money when you rang them a week ago (or earlier). Was an extra fiver or so really worth the risk? But no use crying over spilt milk.

You need to ring them again now and tell them it needs to be done urgently, and that you relied on the fact that you were told it would be 3 working days. (Even that was cutting it fine as BACS payments can in theory take 3-5 working days after the transferor has sent the payment.) Ask them if you can get the payment sent via CHAPS / Faster Payments and say you'll cover the cost.

eskbanker · 10 July 2017 at 2:15PM

Perhaps there were some crossed wires - according to https://www.nsandi.com/files/published_files/asset/pdf/investment-account-brochure-print-friendly.pdf, withdrawals will be initiated within three days but then take a further two to reach the target account, as BACS is used:

49 We will normally initiate the electronic transfer within three banking days of receiving your instruction.

50 Once we have initiated the electronic transfer, the date of withdrawal will be taken to be the date on which, in the normal course, the requested amount would be credited to your bank or building society account. In the case of BACS, this is normally two banking days after we initiate the transfer.

As per the previous posts, it sounds like you need to try NS&I (although their published Ts & Cs do look clear to me) and then discuss contingency plans with your conveyancer.

If the money hits your current account on Monday, you should be able to make a (chargeable) same-day CHAPS transfer from there to your solicitor's account rather than the default free faster payments that can indeed take until the next day (and often have payment limits).

Reaper · 10 July 2017 at 2:33PM

eskbanker wrote: »

If the money hits your current account on Monday, you should be able to make a (chargeable) same-day CHAPS transfer from there to your solicitor's account rather than the default free faster payments that can indeed take until the next day (and often have payment limits).

^
this

I predict a 2nd panic when you realise Faster Payments isn't going to work and you are facing a second BACS transfer. Check it now and prepare for CHAPS

These figures may be out of date but:
http://www.moneysavingexpert.com/news/mortgages/2014/11/customers-being-ripped-off-by-banks-on-faster-payments-limits

Rosebud24 · 10 July 2017 at 11:29PM

Malthusian wrote: »

Not sure why you didn't ask them to transfer the money when you rang them a week ago (or earlier). Was an extra fiver or so really worth the risk?

I didn't transfer the money last week because I didn't want to have all my savings sitting in my current accounts, as it would be over the protected amount. With hindsight though I should have transferred some up to that amount.

Thanks all for the advice about CHAPS, I hadn't realised that is an option. That will save the day if the transferred money doesn't arrive in my current account until Friday. Phew! (I did check the limit with my bank, Santander, last week and it's £100,000 per account so would be ok for Faster Payment should the money be there in time, obviously though I am happy to pay the CHAPS fee).

I have also taken the advice to call NS&I and spoke to their helpful customer service department. They informed me that the transfer - which has already been initiated by them- should only take 3 working days. They said the extra two is for security should you be paying into a different account to normal, but as I had requested a transfer to the current account that I funded my investment bond from in the first place, it should be straight forward. Will wait and see.

Thank you everyone for taking the time to advise. I am heavily pregnant, depressed, and juggling packing and toddler care whilst my husband is deployed so clear thinking is not my forte at the moment! The knowledge of CHAPS means I'll now be able to sleep tonight!

bowlhead99 · 11 July 2017 at 5:50AM

Rosebud24 wrote: »

I didn't transfer the money last week because I didn't want to have all my savings sitting in my current accounts, as it would be over the protected amount. With hindsight though I should have transferred some up to that amount.

If it helps anyone else in this situation, the 'protected amount' is increased to a million per person for temporary high balances such as the ones that might get generated as a result of a purchase or sale of your main residence.

So, you could have moved all the money over to your current account last month in preparation for the purchase as long as you'd be able to produce some documentation to say that you were genuinely in the process of buying a property rather than just speculatively accumulating cash in a current account in case you wanted to buy something.

ChesterDog · 11 July 2017 at 8:47AM

I transfer money quite frequently from NS&I (though not from an Investment Bond account).

As far as I can recall, it has always shown up in my current account by the third working day at the latest.

Panicking about transfer from NS&I account

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