Opening accounts with new banks with registered EPA

[Dave W]

Anyone have experience of doing this? Although the majority of my Mum's money (I have a registered EPA) is with one of the biggest banks, it's over even the soon to be raised guaranteed level and I'm starting to worry - especially as we'll be out of the country for 6 days in mid-October.

Currently, money is with two institutions and it'll mean more juggling to transfer interest earned into the current account each month to help meet the home fees, but that beats losing a large chunk of it (and, if I'm allowed to be selfish for a moment, what inheretence I may be left with).

Is the process easy? How long does it tend to take? Any clues and advice more than welcome.

 

[christine_batch]

Dear Dave,

If you ring Alzheimer's Head Office and ask for the Legal Department, they will give you very good accurate advice.

Best wishes
Christine

 

[Tender Face]

Hi Dave - sadly it's a very valid point you raise for all EPAs to be wary of. These are 'frightening times' for many people and especially those who have to be financially accountable to others as well .... I am sorry I have no practical advice .... what is left of my mum's money is well under the 35k threshold .. but I know I got jittery when Northern Rock first wobbled just because some of her insurances were there ... to imagine money set aside for 'care fees' being lost is horrific .......

Sorry, not much earthly use ... but a huge point which I hope others will have more to contribute on soon .....

Much love, Karen, x

(PS: Is mum still able to enjoy her fish and chips?)

 

[Margaret W]

Hi

All my mums money is with the Halifax, I set up elaborate term deposits with them last Spring (2007), with not a clue about the £35,000 limit. I am a bit stuck now cos to withdraw her money from term acounts will lose a lot of interest, but I am still worried by the £35,000 limit as she has about £60,000 with the Halifax. Should I shunt it out to be safe, and pay the penalty? I think the answer is yes, so tomorrow's job.

Unless anyyone has anything wiser to suggest.

Margaret

 

[Tender Face]

Margaret - this is exactly the point ... generally one large long-term deposit with one financial institution (forget investments in stocks or anything else etc) would reap the best investment ... but with the credit crunch (youch! I hate that phrase!) ... High Street names being taken over or nationalised and a threat on UK banks generally .... there is only so much that any savings are protected by the BofE/Govt if a UK financial institution 'goes to the wall'. At the mo I believe it stands at 35k ... which means anyone with more than that needs to consider 'splitting' those assets across different institutions ... which means lower interest and lower growth ...... and as Dave mentioned - if you are relying on interest to supplement any fees - reduced income from investments from smaller, dispersed deposits .... ... balanced against blah... blah ....- you have some assurity you will not lose any capital if your particular bank goes bump BUT .....you could put all your eggs in one basket, come out smiling - or end up with a flipping omelette!!!!

Karen, x

 

[harvey]

we have the same problem, have been to the bank with registered EPA and waiting for them to sort. No sooner had we been in when the financial bomb went off! We have been worrying about MIL having more than the protected amount and being unable to do anything about it until we have all the legalities of the EPA sorted with the bank. We tend to think of the cash in terms of how long it would last in care home fees when the time comes! The responsibility of dealing with MIL finances suddenly hit us. We have been dealing with the majority of her finances for 18 months, would probably not have worried before the present crisis. We are in limbo until the bank gets back to us with approval/confirmation that we can deal with MIL accounts. We will then also have the problem of deciding what best to do.

Polly

 

[Skye]

I had my annual review with my IFA yesterday, and asked him about having too much money in one institution.

In fact, opinion seems to be that a) the protected limit will be raised to £50,000, possibly today, b) Ireland said yeaterday that all deposits would be protected, and there is pressure for us to follow suit, and c) Gordon Brown will not allow any bank to go under, or depositors to lose money, he can't afford to lose any more votes!

He (FA, not GB!) told me that the word in financial circles is that crises last 1000 days from peak to peak. We're 400 days into this downward cycle, so we're almost at the bottom. Thereafter, things will start to improve, and in two years' time we'll be back where we started.

Believe that or not, I'm just passing it on. But he's a very good FA, with many years of experience.

Sorry Dave, can't help with the EPA. Most of our deposits are in joint names, and I've opened internet accounts in my own name, and then transferred funds electronically. Would that work for you?

PS I should perhaps add that this is not to 'hide' money, we're well above the limit. It's purely to spread things around.

 

[CraigC]

Dave,

I had to set up new accounts for dad when mum passed away. I have EPA for dad and probate for mum.

Check out this article - Are your savings safe
http://www.moneysavingexpert.com/savings/safe-savings

I'm not going to name any bank names but be sure to read the section 'This isn't about separate banks, it's about separate institutions.'

Your first £35,000 is only safe if it is with different insitutions, be aware, THIS does not just mean different banks. Anyway the article speaks for itself.

I have not found it hard to set up accounts for dad, what I have found too hard is to get full internet access to the accounts in all cases. As far as I know, you can temporarily move money to your own accounts as long as you keep records and move the money back at a later date (read my signature please).

I have a responsibility to protect dads money in many ways and am not about to let some bank collapse destroy his hard earned savings. No one can predict what will happen over the next two years, but we are very lucky to be in a country that offers pretty reasonable protection for savings in my opinion, just make sure you put your money in the right place.

Hope that helps
Craig

 

[Clive]

Hi Margaret

Only you can decide what to do with your mum’s money… however the possibility of the Halifax being allowed to renege on paying back retail customers deposit accounts is as near impossible as can be.

If such a thing happened it would be the end of civilisation as we know it. The politicians cannot allow it as it would crash the entire economy… and end their nice jobs for ever.

Clive

 

[BeckyJan]

Hello Dave:

Yes it should be easy. A year ago I transferred some of my brothers money from Halifax to Lloyds TSB, purely cos their interest rates were better.

Just got a cheque out of the Halifax - went into TSB, set up an account and then later a websaver account! No problem - just take in the EPA document and identity (eg your passport). I am pretty certain it can be done immediately.

Love Jan

 

[Clive]

Hi Dave.

Opening a bank account with a registered EPA is very little different to opening an account for yourself. You can open internet accounts, postal accounts and branch accounts.


The first concern is that almost every bank clerk you meet went to sleep during the training course and has little knowledge of what to do. Expect it to take a little time to open so don’t leave the car in a restricted parking area, and go to the loo first. Also remember that some banks expect you to make an appointment at the branch to open an account ! Appointments can be helpful as you may get a person who has opened an EPA account before.


If you are opening the account by post (or internet) remember to only send the EPA certified copy… as they do get lost. Royal mail “recorded deliver” gives no protection and often you do not even get a delivery signature.


If you intend to open the account through the post or on the internet you should first check that the bank allows EPAs. Whilst they should... you will find some will not. The highest interest internet account banks all say no. (Someone should argue this out with them).


The first bank that the Government nationalised will allow you to open an “internet account” but insists that you only access an EPA account by post !


When you open the account you will have to provide identification. In theory the registered EPA is all you should need to prove your dad’s identification… however if you do not want to have to argue this point it is helpful to take two forms of identification for your dad as well as yourself. (I find it helps to send two forms of identification through the post for both mum and myself when opening a postal account).


Banks also now use the electoral roll as a form of identification so you may get asked a question if your dad is not on the electoral roll at the address you give. (I always say mum’s address is the same as mine. I only give my home address for mum so that the statements don’t go to the NH). Also make sure you have your dad’s National Insurance number. (The last bank demanded this information for a standard fixed rate account).


Finally write your dad’s name on the PAY line of his cheque that you use to open the account… possible adding the new bank’s name and account number .

You will find many banks / Building Societies have accounts that automatically transfer the interest each month to a current account at another bank. I think this is a feature you would appreciate and should ask if it is available.


You will also find today’s top interest rate account is the bottom next year so be prepared to keep moving. I have now opened more than 16 accounts since obtaining the EPA… and each bank has managed to surprise me with some new query.


Whilst I don’t think you should panic to open a new account, we all have to do our best to maintain our loved ones capital. I do not think you are being selfish thinking about the inheritance your dad expected you to receive. The selfish people are those who wish to acquire your dad’s savings to balance their NHS/social service budget shortfall.


Best of luck opening your dad’s new account(s).

Clive

 

[JeanD]

I opened a Nationwide account for my father with my EPA. They were very understanding and the whole process took only 5 minutes. They gave me internet banking facilities, so I have been able to move his income instantly into his e-savers account with them, and also set up some 1 year bonds which pay interest monthly. I pay the home fees direct from this account online. It makes my life a little easier to not have to get to banks after work, and I never have more than a few pence in the current account, so I can maximise the interest.

The documents I needed were the original EPA or a certified copy, ID for dad and me, and proof of address. I took both our passports and driving licences, although as I already bank with them myself I didn't need them.

The website moneysavingexpert.com mentioned on an earlier post also has links to "Fitch ratings" which give an indication of the financial health of an institution, although how useful it is in these fast changing times I am not sure.

Jean