THOUSANDS of bank customers could risk money “disappearing” when making a transfer to a new bank account.
Some Chase account holders have had their attempts to move money fail.
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In at least two different cases, Chase customers have been left unable to access their cash.
One customer was left at their “wit’s end” after trying to move inheritance money to a Chase account which offers a competitive rate of 1.5% on savings.
The payment was made by Chaps (Clearing House Automated Payment System), a common method of making transfers between banks when large sums are involved.
But Chase does not accept Chaps payments and the money was left in limbo.
The customer was not able to access the cash in either the Chase or original account for days, he told the Telegraph.
Meanwhile another customer tried to pay in Premium Bond winnings to his Chase account.
But National Savings & Investments (NS&I), which runs the prize draw, was unable to verify the account with the third party credit agency it uses.
That’s because Chase is new in the UK and hasn’t started lending yet, The Times reports.
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In both cases the cash was eventually returned to the original accounts.
Chase has been contacted for comment.
Chase is owned by US banking giant JP Morgan and launched in the UK last year.
The online-only account offers a generous 1% cashback and 5% on savings roundups.
In March the bank launched a saving account offering 1.5% interest – one of the best easy access rates available.
Money expert Martin Lewis has urged everyone to check they are getting the best rates on their money.
It’s prompted a surge of accounts openings at Chase as savers scramble to move their savings.
It now has half a million users in the UK and has put in place a wait list for new customers wanting to open accounts.
Customers must open a current account to access the savings rate.
Savers should be aware that the bank and other newer providers may not have the same features as accounts from more established banks.
Consumer champion and The Sun’s Squeeze Team expert Martyn James said: “Online digital banks have transformed the industry, but bear in mind that many services you’ve taken for granted might not be available.
“Some have limits on funds you can transfer in or out, or charge for direct debits.
“Read the terms and conditions thoroughly before moving over, or set up the account like an electronic wallet so before you commit to moving everything over.”
Chase also does not support Confirmation of Payee (CoP) a protective measures designed to help stop customers from losing millions of pounds to bank transfer scams.
The big six banks are required to have the fraud check in place but for other institutions it is optional.
When making a bank transfer, it alerts customers when a payee name entered is different to the name registered on an account.
Without it banks only have to verify the account number and sort code before allowing a cash transfer to go-ahead.
Meanwhile another big bank has launched a market-leading 5% on current account savings.
And several banks are offering switching bonuses which could boost your balance.
When switching accounts in search of better offers consumers should look a the features of the accounts and check that it suits their needs.
