UK Savings Providers Delay the Release of Savers’ Funds

According to the report published by The Times, a large number of UK savers have faced problems with banks and building societies they trusted. Many Brits accuse their savings providers of delaying the release of their bonds. The Times says that several UK savings providers that once offered best-buy savings deals paying as much as 7% have now tied up the funds of savers whose deals are maturing. Many letters were sent by the readers, who complain that the delays of banks and building societies cost them a lot as they are unable to transfer to other top-rate fixed deals. One of the letters was sent by Mr. Richard Mason, owner of the London-based equity firm, whose deposit was made with the Bank of Ireland, running the Post Office Products. According to Mr. Mason, the savings provider refused to release his bond £1.06 million earlier than in 5 days, insisting that there is a certain validation period. The bank, however, offered Mr. Mason a cheque, which could take up to 10 days. In fact, the transfer period took the Bank of Ireland 20 days, and cost Mr. Mason around £2,500 in interest as he could not transfer to a different deal. According to the UK Payments Association, the body monitoring financial transactions in the country, despite the fact that transfer of money from one savings provider to another is technically possible, the vast majority of UK banks and building societies only allow inner electronic transfers. Such savings providers include Barclays, Alliance & Leicester, Halifax, and Lloyds. HSBC and Chelsea, meanwhile, do allow moving money electronically to “rivals”. Another letter received by The Times was written by Mr. Laurence Flint, aged 61, who might well miss an attractive savings deal paying 3.95%, offered by the National Savings & Investments, because his current savings provider – Abbey – refuses to release his deposit of £100,000. Abbey specialists say that the sum cannot be transferred because of high fraud risk and demand that Mr. Flint, who is disabled, comes to the branch in person. Other banks and building societies that caused problems for UK savers include Bradford & Bingley, Barclays, and Birmingham Midshires.

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