I opened a two-year fixed Isa with NatWest on 29 July. My existing Isa provider, Marcus, transferred my funds out on 17 August.
My new NatWest Isa balance still shows nil (i.e. my £20,000 is currently ‘missing’).
Despite many calls, emails, texts, instant messages, app discussions (persistently) since 25 August, NatWest are unable to move beyond giving apologies and vague messages of resolving ‘as soon as they can’.
Even my formal complaint (placed on my behalf by my Premier Banking manager) is going unanswered.
NatWest took over two months to transfer a customer’s funds to a two-year fixed rate Isa, leaving them wondering whether their money had gone missing
This is beginning to cause significant stress, as it is not an insignificant sum of money which is currently unanswered for.
There appears to be no urgency on NatWest side to resolve, nor any effort to keep me updated.
Looking on forums and comments on social media, I am not an isolated case.
NatWest continues to promote market leading deals, when they apparently do not have the systems or resource to deliver on promises from three months ago. They shouldn’t be able to do this.
Helen Kirrane of This is Money replies: A situation in which your money is suspended, seemingly in mid-air, between two accounts all the while losing out on interest is the stuff of nightmares.
You are right in thinking that you are not an isolated case – and with Isas back in the sun this year, there are likely to be more cases of bodged transfers.
Only in August we took Barclays and Virgin Money to task over Isa transfer delays.
How long should an Isa transfer take
Andrew Hagger, founder of MoneyComms says: Cash Isas should take no more than 15 working days and it should take no more than 30 calendar days for other types of Isas.
Helen Kirrane says: In reality, it depends entirely on your Isa provider. Especially where Isas are involved, more information may be requited to verify tax statuses and other information.
Government advice states that if your transfer takes longer than it should, contact your Isa provider and if you are unhappy with the response, to take the matter up with the Financial Ombudsman Service.
You told me that you intended to take your case to the Ombudsman in one week if they had not made any progress in resolving the issue.
Since I contacted NatWest on your behalf, the bank has apologised for the delay you experienced and assured me that the balance of your Isa has now been transferred and back interest paid.
Will interest be backdated if there are delays in transferring?
Helen Kirrane replies: Whether or not the interest is backdated due to a delay in transferring funds is at the discretion of the provider.
If a transfer between Isas is delayed due to a reason which was not the customer’s fault, it is only right that the provider investigates the situation and responds to the customer accordingly.
At the time you opened your Isa, NatWest was offering an attractive rate of 5.9 per cent according to rate scrutineer Moneyfacts.
In your case, you have been missing out on interest that your savings would have been accruing had they been transferred swiftly to the new accounts so it is only fair that the interest would be backdated.
The best rate on a two-year fixed Isa today stands at 5.49 per cent, showing that rates have started to slip downwards.
James Blower, founder of website Savings Guru replies: ‘Two months isn’t acceptable. Your reader should be compensated for any loss of interest as a minimum.’
A spokesman from NatWest replies: ‘We’re sorry for the delay Mr T experienced in transferring his Isa to us, and the uncertainty this caused. This was not good enough.
‘The balance has now been transferred, and back-dated interest paid. We have also compensated Mr Turner for the inconvenience and extended our sincere apologies.’
Helen Kirrane adds: I’m pleased that your £20,000 is now in the account, but… NatWest didn’t explain what had gone wrong or where your cash was.
If you’re suffering a similar Isa transfer nightmare, get in touch: [email protected]
