Thousands of bank customers can risk money “disappearing” when making transfers to a new bank account.
some Chase Account His attempts to transfer the money to the holders have failed.
In at least two separate cases, Chase customers have been left unable to access their cash.
A customer was left on their “wit’s end” trying to transfer legacy money to a Chase account that offers a Competitive rate of 1.5% on savings.
Payment was made by CHAPS (Clearing House Automated Payment System), which is a common method of making transfers between banks When large sums of money are involved.
But Chase did not accept Chap’s payment and the money was in limbo.
Customer was not able to access cash in Chase or Origin account for several days, he told the telegraph,
Meanwhile another customer tried to pay premium bond Win in your Chase account.
But National Savings and Investments (NS&I), which runs the prize draw, was unable to verify the account with the third party credit agency it used.
This is because Chase is new to the UK and has not started lending yet, Times report,
In both cases the cash was eventually returned to the original accounts.
Chase is owned by American banking giant JP Morgan and It was launched in the UK last year.
The online-only account offers a generous 1% cashback and 5% on savings roundup.
In March the bank launched a savings account offering 1.5% interest – one of the best easy access rates available.
This leads to account opening at Chase as savers scramble to move their savings.
It now has half a million users in the UK and has created a waiting list for new customers who want to open accounts.
customers have to open a current account To reach the savings rate.
Savers should be aware that banks and other new providers may not have the same facilities as accounts with more established banks.
“Some have a limit on the funds you can move in or out, or charge a fee for direct debit.
“Read the terms and conditions thoroughly before proceeding, or set up an account like an electronic wallet so you are committed to doing everything going forward.”
Chase doesn’t even support Confirmation of Recipient (COP) A protective measure designed to help prevent customers from losing millions of pounds in bank transfer scams.
The big six banks are required to conduct fraud investigations but are optional for other institutions.
While making bank transfers, it alerts customers when the recipient name entered is different from the name registered in an account.
Without this, banks would only have to verify the account number and sort code before allowing cash transfers.
Meanwhile another Big bank launches market leading 5% On current account savings.
And Many Banks Are Offering Switching Bonuses Which can increase your balance.
While changing accounts in search of better offers, consumers should look at the characteristics of the accounts and check whether it suits their needs.