Has anyone been able to pay into a legacy bank cash ISA from their Monzo current account?
I recently used the CASS to go ‘full Monzo’ and closed my legacy bank current account. I still have an ISA (Help to Buy) with Halifax, and initially the switching service took care of my monthly standing order payment.
I wasn’t able to change the date or amount of this monthly payment after the switch, so I cancelled with the intention of setting up a new standing order - which, on the Monzo app it suggested I could do. However, my payment kept being declined (regardless of date or amount).
Monzo have traced the issue to the fact that their ‘standing order’ is not, in fact, technically a standing order payment (SOP). It’s a single instantaneous payment (SIP). As per my ISA Ts&Cs, only a SOP can be accepted in the account. Neither bank has offered me a solution.
Does anyone have any experience of this with another bank? If so, how did you get around it? Suggestions greatly welcomed!
The interest rate of my ISA is very good (for the times) and I will be supported by Gov when I use savings to buy my first home. I’m therefore not willing to switch my savings over to Monzo.
The options I can see so far are
Open a current account with another bank, pay into it monthly from Monzo only to transfer to ISA
Pay into my partner’s account monthly and have them set up a standing order to my ISA
I am in a similar position as yourself, I closed my current account and became ‘Full Monzo’ and I also have a Help to Buy ISA with a high-street bank.
Mine is with Lloyd’s Bank and I pay in to it once a month from Monzo using a ‘Scheduled Payment’ which I assume is Monzo’s version of a standing order.
I have never had any problems with it. If you can switch to Lloyd’s, it may be worth it?
DanielH - Can I ask if you set up the scheduled payment after switching to Monzo? Or if the recurring payment was transferred by the switching service? For the first two months the payment was made with no problems, but since cancelling it to change the arrangement I haven’t been able to pay in using a scheduled payment.
All attempts have been within the monthly maximum allowance and date restrictions, so it’s definitely not that (even a £1 test payment was declined!)
Neither Halifax nor Monzo have offered a solution that doesn’t involve opening another bank account and they’ve apparently spoken to each other directly.
Hello I have a Help To Buy ISA with Halifax too, but haven’t had any issues paying from Monzo.
I initially transferred my standing order when I CASSd over, but since then I have edited the payment, so presumably I had to cancel and set it up again like yourself - but I haven’t had any issues with it.
This is why, whenever I have a financial product from another bank, I generally open an associated current account with the same bank.
Mortgage, credit card, balance transfer credit card and personal loan (best buys – no bank certainly not Monzo, sorrynotsorry is able to be top of the market for everything) all come from different banks, and each one has its own current account. It’s just easier, and it means the banks never have to go away and “talk to each other” which takes too long anyway.
I’ve spent a combined 47 minutes on the phone to the high street bank today and have lost count of the number of times I’ve been told that ‘as per the Ts&Cs only a standing order payment will be accepted’. This is despite me pointing out that in previous months payments other than SOs (e.g. FPI and TRF) have been accepted.
They think it’s Monzo’s fault, Monzo thinks it’s their fault.
I’ve given up and opened a current account with a (different, less unethical) high street bank. Fingers crossed.
Confused about why they think its not a standing order.
When Monzo say ‘their’ standing order is an SIP not an SOP, do they mean the one Monzo send? And so Halifax can only accept a certain type of standing order?
Was your rejected payment one you tried to send instantly, so went as a faster payment, or one you set as a scheduled payment for a future day, which might go as a different ‘type’? You might have gone over this already in your first post.
I’ve tried both an instant payment and scheduling one for a future day, and every attempt has been declined. Monzo have confirmed that what they call a ‘standing order’ isn’t technically a standing order, as recognised by the banking systems.
We are actively looking in to this in an attempt to get things sorted.
If anyone that’s had experience with paying in to Halifax or Lloyds Help to Buy ISA accounts would be so kind as to send us a message in the app, we can then gather some more information on the problem.
Ask Halifax for a standing order form just say you can’t do it online, once you get that check all the details on there exactly match what you are trying to do. For some reason it seems Halifax are not accepting the payment because its being sent as a faster payment rather than a standing order. Its an old problem but banks shouldn’t be having that issue on 2019. The form is just to double chexk everything and you then have it in black and white if Halifax end up being difficult about it, so you can use that to your advantage if need be.
That’s disappointing to hear, but thanks for letting me know. I’ve not had any updates from Monzo. Hopefully it’s because they are actively looking into it.
I have a Help To Buy ISA with Halifax too, but haven’t had any issues paying from Monzo.
