I just had a Northern Rock fixed-term investment mature. They say "unfortunately we can't transfer the balance by BACS to your bank account"; the only options to get the money are a cheque by post, or a CHAPS transfer which costs me 35.
Why can't they use BACS? (which I believe should cost 70p or so). Cheques do have the habit of getting lost in the post - assuming they get sent in the first place - and it's probably real hassle getting a replacement issued.
I have never heard of that one, unless its a temporary glitch (see news this morning of BACS delays to transfer salaries). All my online accounts use BACS to transfer funds, and all my bills are paid via BACS.
No it's actually printed as a condition on the maturity form; sorry I didn't make that clear.
Another bit of important small print to look out for!....
They will have the interest from the date of the cheque up until the date that they pay it. Or they will have the transfer fee. Either way, you lose.
In message , LSR writes
Hmm, strange. Could it be because by BACS for a one off investment over a certain amount their money laundering rules need to prove that the account number ties in with the account name. This is checked with CHAPS but not with BACS. Just a theory.
IIRC, the fixed-term account opening process requires a cheque in the post, unless you happen to live near a NR branch. I suspect they'd be wary of sending maturity funds to a BACS destination from which they'd
*not* previously received the initial investment. OTOH, 35 for a CHAPS transfer seems to make them much less wary :-)One way round it, which we intend to use when our fixed-rate bond matures next year, is to request payment into our NR internet-based variable rate account. A BACS transfer out from there should then be simple.
Given that the form gives a choice of Cheque or CHAPS but not BACS, I would suggest that this is NR ensuring they avoid the situation where an investment is greater in value than the BACS limit of £10,000. If they dont give the option they cant end up having to go back and make different arrangements.
Ian
wrote
Is that a new thing?
What BACS limit? I frequently move more than that by BACS, and AFAIK the banking system uses BACS for even larger amounts than me (add several zeroes)?
Rubbish.
Given that the form gives a choice of Cheque or CHAPS but not BACS, I would suggest that this is NR ensuring they avoid the situation where an investment is greater in value than the BACS limit of 10,000. If they dont give the option they cant end up having to go back and make different arrangements.
Ian
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