FREE £20,000 with the LloydsTsb Sharedealing service
Discussion
I have a sharedealing account with the Lloyds, a Nominee account to be exact.
Anyway, the way it works is when you setup the account you have to register a primary bank account from which you make deposits & also withdraw to.
The above is the easist way of paying in money, however, you can also pay in from 'other' cards.
On Tuesday I went to make a 5k deposit from a card (not the registered account), but it is a VISA card. I typed in all the details & pressed 'submit', only to be told that they did not accept VISA payments, only VISA delta.
At this stage the system automatically selects the next deposit option, which is 'pay in from registered account'.
I did not realise that this had happened. I just checked the details on the card I had previously entered & pressed submit.
ACCEPTED.
Now, my registered account is an old account which basically has f@ck all money in it.
Today I noticed the payment had cleared, but could not work out where the payment had come from. The card I wanted payment to come from had not been asked for the money & neither had the registered account.
It turns out that you DO NOT have to have the funds available as they clear the funds from a 'ghost' account & deposit it in your trading account. They they, 3 DAYS LATER, approach the bank for the funds. If they find that they are not available they then take back the money from your Sharedealing account.
Anyway.... I phoned the sharedealing account & asked what would have happened if I had asked for 500k instead of 5k, and was told they have a limit of 20k by card transfer.
Dragging on a bit now I know..... but.......
This means you can/could invest the 20k immediately, hope to make money in the next couple of days, sell the shares & then on day 3 the bank would take the money back (LEAVING ANY PROFIT (or loss) IN YOUR ACCOUNT).
Lloyds are aware of the problem & are working on it, but at present its still a 'glitch' which is available to everyone.
Right then....... anyone have any share tips ?
Anyway, the way it works is when you setup the account you have to register a primary bank account from which you make deposits & also withdraw to.
The above is the easist way of paying in money, however, you can also pay in from 'other' cards.
On Tuesday I went to make a 5k deposit from a card (not the registered account), but it is a VISA card. I typed in all the details & pressed 'submit', only to be told that they did not accept VISA payments, only VISA delta.
At this stage the system automatically selects the next deposit option, which is 'pay in from registered account'.
I did not realise that this had happened. I just checked the details on the card I had previously entered & pressed submit.
ACCEPTED.
Now, my registered account is an old account which basically has f@ck all money in it.
Today I noticed the payment had cleared, but could not work out where the payment had come from. The card I wanted payment to come from had not been asked for the money & neither had the registered account.
It turns out that you DO NOT have to have the funds available as they clear the funds from a 'ghost' account & deposit it in your trading account. They they, 3 DAYS LATER, approach the bank for the funds. If they find that they are not available they then take back the money from your Sharedealing account.
Anyway.... I phoned the sharedealing account & asked what would have happened if I had asked for 500k instead of 5k, and was told they have a limit of 20k by card transfer.
Dragging on a bit now I know..... but.......
This means you can/could invest the 20k immediately, hope to make money in the next couple of days, sell the shares & then on day 3 the bank would take the money back (LEAVING ANY PROFIT (or loss) IN YOUR ACCOUNT).
Lloyds are aware of the problem & are working on it, but at present its still a 'glitch' which is available to everyone.
Right then....... anyone have any share tips ?
It's not really a glitch as such. It's just a fact of life if you want to enable clients to fund their deling account off a debit card and trade immediately.
I helped to set up one of these online trading operations and it was one feature the clients really wanted, no one wants to wait 3 days for the money to clear.
I helped to set up one of these online trading operations and it was one feature the clients really wanted, no one wants to wait 3 days for the money to clear.
hobo said:
But people could trade with money which they don't have, which can't be right. Can it ?
It's a credit risk. But given that they have gone to some lengths to obtain/ validate your residential address details, your NI number etc. anybody being naughty can be easily caught and prosecuted.
And yes of course you could fund your account from a debit card and without having enough in your current account to cover it. I frequently do this.
1. Fund trading account.
2. Execute my trades.
3. Log onto current bank account and transfer money from despoit saving account into current account to cover debit card payment, often the day after I've traded.
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