EBS 15 Month Fixed Term A/c - Roll Over Date

I just opened one of these today and have been reading up on the terms and conditions re maturity.

Quote:

Please contact your local EBS Office before the maturity date with your rollover or other instructions. In the event of instruction not being received by 11.00am on the maturity date, the total at maturity less DIRT, will be rolled over for a sikmilar term at the prevailing interest rate.

Click to expand...

I have never heard of this before, ie the funds being re-invested in a term account without any permission from me (should I fail to issue instructions. Normally an a/c would revert to an ordinary deposit rate a/c.

Is this not harsh practice or indeed illegal as it would be tying up a customers funds without their permission.

Agreed, that this should not happen, but it does.

INBS have a similar practice and Investec put your money into a notice account if you do not give an instruction by maturity date.

The Financial Regulator should stop this.

fungus said:

Agreed, that this should not happen, but it does.

INBS have a similar practice and Investec put your money into a notice account if you do not give an instruction by maturity date.

The Financial Regulator should stop this.

Click to expand...

Doesn't surprise me

thanks fungus.

I will add a note to the EBS term deposits in the best buys stating this T&C to try and stop other people getting caught out by this.

But hey! Isn't this the organisation that is trying to re-invent itself with the slogan
Where Family Counts .....makes you laugh!

EBS have this practice for all their fixed accounts ie from 3 months upwards...

Seems like a bit of an over-reaction, I mean is it not better that the funds are redeposited into the same account, it means you are not losing interest as opposed to putting it into a demand account earning little or no interest???

Also people should be aware of their maturity date and you have your cooling off period to withdraw your funds after they are re-invested so you can still take them out.

What if you dont have a demand account? Surely they cant open one without your signature?, so what else are they expected to do but re-invest the money!

If anyone is "caught out" by this its their own fault, take some responsibility for yourself, go in on the maturity date and withdraw/re-invest your funds.

I have opened accounts with EBS before, it also states it on the footer of the confirmation letter. I actually rather they did re-invest my money, I know Im still earning interest, and if I wanted my money out , then I would take it out on the day it matures!

How long is the cooling off period after the maturity date?

I was told 30 days if the term was longer then 1 year

Bobby1

Seems like a bit of an over-reaction, I mean is it not better that the funds are redeposited into the same account, it means you are not losing interest as opposed to putting it into a demand account earning little or no interest???

Click to expand...

Not worth a sausage to me or people like me, who are dependent on getting access to our money in 15 months time only to find the bank says we can't have it.

If anyone is "caught out" by this its their own fault, take some responsibility for yourself, go in on the maturity date and withdraw/re-invest your funds.

Click to expand...

If the good lord spares me and keeps me in good health! There are 'many' reasons why a person may overlook the Maturity date but that doesn't give the bank the right to take advantage of the situation.

I was in my local branch yesterday and was told 10 working days for cash accounts. For investment products it is more strict.