Loqbox discussion thread

(Dan) #1

Finished my LOQBOX after 12 months. Not sure what impact it has had on my credit, but the process to withdraw the funds is a heck of a lot more complicated than I thought.

Firstly it takes three workings days for each deposit to clear. This can feel like a lifetime when you’re trying to withdraw.

You can only withdraw to one of their ‘partner banks’ for free. I emailed LOQBOX a few weeks ago to ask what the partner banks were and never had a response, disappointingly. You can also pay £30 to deposit your savings into an existing current account.

Naturally I elected to open a new bank. The choices are RBS, NatWest & TSB. I selected RBS, and the application process is painfully outdated, and now I have to wait several working days for RBS to tell me if I can have a bank account with them (no instant decision offered or given).

The exit procedure seems a bit :poop:. I get LOQBOX needs to make money, but I’m one of those people that needs access to these savings so I can get on with buying my wedding ring :see_no_evil: and didn’t really want to pay to access my savings sooner rather than later. If I had known RBS would not give a same day decision, I probably would have considered TSB/NatWest if they offered same day opening.

:newspaper: How have Monzo changed the ethics of personal finance for the better? - LOQBOX
(Dan) #2

An update on my journey after unlocking my LOQBOX.

So RBS opened my account four days later.

I then had to wait for my card to arrive, which arrived the next day, then my PIN separately today. Once I received my card I could then register for online banking (as this would be the first time the account number and sort code would become known to me). When I got my card I was able to tell LOQBOX my account details so that they could transfer the money into my new account.

I want to transfer the money from RBS to Monzo. The online account is immediately heavily limited as I am forced to order a chip and PIN reader to unlock full features of the app. The chip and PIN reader takes 7 working days to arrive. When I receive the chip and PIN reader I’ll be able to make a payment from RBS to Monzo online.

In a bid to speed time up, I rang up, was put through immediately which was a surprise, I was asked about 7 security questions, only to be told I cannot make any payments over the phone because the account has been opened for less than 30 days, and that I must go into a branch (nearest branch over 40 miles away) with photo ID to make a bank transfer payment.

At this point I’m just going to withdraw the money at an ATM and pay it into my other current account and then transfer to Monzo. I cannot wait to close RBS. Monzo, please never be like this! Also this experience has heavily impacted my desire to go through LOQBOX again as I never wanted a new bank account, nor did I want to pay £30.00 for the privilege to access my savings directly into my existing current account, which I’m sure LOQBOX made interest on for the duration of holding my savings.

(Richard Cook) #3

Hi @Stockleyo, thanks for sharing!

I’ve split your posts out into their own thread. Let’s use this as the ‘main’ Loqbox thread from now on.

(Stephen Morris) #4

I met the guys from LOQBOX a few years ago when I was working at one of those partner banks. I thought it was an interesting concept, albeit one that I thought could prove a challenge to sell.

I’m not sure they make a lot of - or any - money from deposits. It’s all instant access (as you can cancel during the term and get everything back) and so their main income is from affiliate deals with TSB and RBS. If you choose to opt-out of that stage, the £30 fee is in lieu of them not receiving that payment.

I don’t think they’ve always communicated that very well. They do now, but I don’t know what the info was like when you opened your account. But even if the info is there, there’s a risk that people won’t remember that detail 12 months later and LOQBOX should do all they can to make that clear towards the end of the term so people can start planning accordingly.

It seems like quite an innovative product which is let down by involving legacy banks at the end of the process.