How fast is 'Faster payments'?

[Simpo Two]

I'm moving my SIPP to a new platform and the money left last Tuesday. They advised it had been sent by 'Faster payment', so I was expecting it to appear on the new platform the next day. As of today - 3 days - it hadn't arrived. Is that normal for such things? And does the process continue to clank away over Easter or does everything grind to halt until next Tuesday?

[MissChief]

I'd have expected it to arrive by now, but if it is a substantial sum it may have been flagged for manual review and with the bank holidays it might be next week before it comes through.

[Simpo Two]

Thanks; it's into six figures so maybe that's it.

[Chris Type R]

My Interactive Investor annual SIPP contributions take a number of days to materialise.

[Panamax]

Faster payments are usually instantaneous, or near instantaneous, for any amount. The limitation is usually the max amount set by your own bank for daily electronic withdrawals/transfers. Typically the limit is per account and, say, £25,000 a day.

Most likely your platform takes a while to update your investment account when things arrive in their bank account, and they're possibly shut at the weekend.

If you want guaranteed same day transfer it's still advisable to use CHAPS, which costs about £30. Weekdays only. Useful for house purchases.

BACS also still exists (c.3 days) and is, I believe, used for Direct Debits etc.

[CharlesElliott]

Faster payments is 'real time', so either - it has been deemed suspicous and held for review (less likely) or it has been received by your provider but they have not yet applied it to your account or have not shown that it has been applied to your account as yet (very likely).

Limit on the FP system is £1,000,000 per transaction.

[Simpo Two]

Thanks very much for the clarification all

So it seems likely that the receiving platform (Fidelity) could/should have put it into my new SIPP account last Tuesday. If I can't re-invest it until, say next Tuesday, and markets rise in that week, would I have grounds for a claim or is it just tough luck?

[YouWhat]

said:

Thanks very much for the clarification all smile

So it seems likely that the receiving platform should have put it into my new SIPP account last Tuesday. If I can't re-invest it until, say next Tuesday, and markets rise in that week, do I have grounds for a claim or is it just tough luck?

It’s tough luck, would you complain if the market went in your favour?

[Simpo Two]

Neither would you... but there has to be a reasonable timeframe, no?

[TownIdiot]

Simpo Two said:

Neither would you... but there has to be a reasonable timeframe, no?

I bet a pound to a penny that this will be in terms and conditions and won't be in favour of the consumer.

[SteveDubia]

CharlesElliott said:

Faster payments is 'real time', so either - it has been deemed suspicous and held for review (less likely) or it has been received by your provider but they have not yet applied it to your account or have not shown that it has been applied to your account as yet (very likely).

Limit on the FP system is £1,000,000 per transaction.

While it technically is, most banks limit it to £25k ish.
If it was urgent and a large sum you really should use CHAPS.

[Chris Type R]

Simpo Two said:

Neither would you... but there has to be a reasonable timeframe, no?

It's the beginning of the new tax year, there will be loads of other SIPP account activity happening. Likewise, I was unable to trade my contributions on Tuesday.

[CharlesElliott]

SteveDubia said:

While it technically is, most banks limit it to £25k ish.
If it was urgent and a large sum you really should use CHAPS.

Maybe for a consumer. But this is a pension provider moving money to another pension provider.

[SteveDubia]

CharlesElliott said:

SteveDubia said:

While it technically is, most banks limit it to £25k ish.
If it was urgent and a large sum you really should use CHAPS.

Maybe for a consumer. But this is a pension provider moving money to another pension provider.

Last one I did was from Scottish Widows to Vanguard, they used Origo that took 10 days.
Didn’t realise the providers actually used faster payment, you live and learn

[LooneyTunes]

SteveDubia said:

CharlesElliott said:

Faster payments is 'real time', so either - it has been deemed suspicous and held for review (less likely) or it has been received by your provider but they have not yet applied it to your account or have not shown that it has been applied to your account as yet (very likely).

Limit on the FP system is £1,000,000 per transaction.

While it technically is, most banks limit it to £25k ish.
If it was urgent and a large sum you really should use CHAPS.

If banks have a self-imposed limit (and not all of them do) then they don’t usually allow the consumer to select FP for a transfer that would exceed their limit.

Worth being aware that CHAPS is only same day when pre-cut-off and even then it is usually slower than FPS… but certain sectors like it because it gives them the excuse to make a hefty charge to the customer for something that sounds more exotic.

[Sheepshanks]

CharlesElliott said:

…….or it has been received by your provider but they have not yet applied it to your account…..

I’ve had this happen with providers - the money is sitting in a suspense account, you have to tell them to go and look for it.

[PM3]

I moved my ISA from IM Sep/Oct 24 , they transferred the cash ( well into 6 fig ) and it showed up on balance in Vanguard the next day . Mid week, no bank holidays etc. I recall vaguely that vanguard didn't actually show up next day but day after, but in retrospect their site now shows next day.

[Simpo Two]

CharlesElliott said:

SteveDubia said:

While it technically is, most banks limit it to £25k ish.
If it was urgent and a large sum you really should use CHAPS.

Maybe for a consumer. But this is a pension provider moving money to another pension provider.

Indeed; I didn't think a bank would be involved in a SIPP transfer.

CharlesElliott said:

Last one I did was from Scottish Widows to Vanguard, they used Origo that took 10 days.
Didn’t realise the providers actually used faster payment, you live and learn

Ha, well this started in January. What I found out since, but they didn't tell me at the time, is that if you use a transfer form, it goes manually. They only use Origo Options if you do it online...