Woolwich makes its savers wait

By DAILY MAIL REPORTER
Updated: 00:00 EST, 27 July 2007

Woolwich savers will have to wait up to a week longer for monthly interest payments from their fixed-rate bonds. The change is triggered by their transfer to Barclays. Woolwich has transferred its 3.6m savers into Barclays accounts.

Instead of paying monthly interest on fixed-rate bonds directly into savers' current account, Barclays will introduce a new drawn-out process. It will send a cheque by second class post which you then have to take to your bank - and wait for it to clear before you can start to spend your income.

Savers who have their interest paid annually will suffer the same fate when their interest dates come around. A spokesman for Barclays says: 'We can no longer pay into a non-Barclays account because we do not issue these 'corporate cheques' to other banks.'

Monthly income seekers are not the only people to be disadvantaged. Savers who originally picked Woolwich Card Saver, Openplan Savings Reserve, Monthly Saver or Premier Instant with the Woolwich have been moved over to a new Barclays account, Flexible Savings.

This pays 2.84% after 20% savings tax on savings up to £10,000 and 3.19% on £50,000 and above from August 1. But Barclays has a better account which does the same job - giving easy access and a cash machine card - called Day to Day, which pays 3.54% on balances of £1 or more.

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