What a Hassle to Open an Account With The Family Building Society

Written by Karen Bryan

I was attracted to the Family Building Society’s 2 Year Tracker Rate Bond Issue 1, which paid an interest rate of 2.06%. This is a variable rate, which tracks at 1.56% above the Bank of England Base Rate. The minimum investment is £5,000.

The interest rate of 2.06% paid on Issue 1 of the Family Building Society) matched the best buy two year fixed rate bonds. As I expect the Bank of England Base Rate to increase during the next two years, I am hoping to earn more interest by opting for the Family Building Society Tracker Bond, as opposed to a two year fixed rate bond. Time will tell.

Update 8 February 2018 – The current Issue 2 Tracker Bond pays a lower rate of 1.92%, tracking at 1.42% above the Bank of England Base Rate.

It said on the Family Building Society website that you could open the Tracker Bond online, making the deposit by debit card.

It only took a few minutes to complete the Tracker Bond online application form,which included details of the current account into which I would receive any payments from the Family Building Society.

While filling out the form, there was a message saying that I’d need to give the debit card details at the end of process. My ID was checked online. Then the payment page appeared.

After entering the Visa debit card details, a Visa verification page appeared, saying that I would receive an OTP (one time password) by text message. The OTP didn’t appear, so I phoned the number on the page, which took me to my bank’s fraud protection line.

After going through a security check, I was told that I should be able to make the payment. However, by this time, the payment page has disappeared.

I phoned the Family Building Society in the hope that they would have a record of my completed application form and be able to take the debit card payment over the phone. They had no record of my application, and told me to redo the application.

I completed the Tracker Bond application again, but payment was declined.

I decided to try a different debit card. The payment was finally successfully processed.

At that stage, I assumed that the account was open and had been funded.

However, in a pdf from the Family Building Society, a letter explained that before my account could be fully opened, I would need to post the Family Building Society a signed application form and a recent statement from my nominated current account.

I had to print out the application form and statement and then go to a post box.

What a painful process to open a Two Year Family Building Society Tracker Bond. Plus, I didn’t earn any interest on the funds sitting in my current account until they were paid into the Tracker Bond on the Monday, as I opened the tracker account on a Friday.