opening new accounts and transferring money

dorisdoris_2 · 9 October 2008 at 11:07PM

Hi

at the moment i have all my money in one bank. I am going to open a couple of accounts in another 2 banks. I know this could be a hassle when transferring money from one bank to another. Is there any reason why i cannot open a new account-draw out the cash from my bank and deposit it into my new account.This would seem to be easier - would there be any penalties with regards to tax.
can anyone help.
thanks:j

Reaper · 9 October 2008 at 11:48PM

The disadvantages with your plan are:

1) There will be daily withdrawal limits for cash (though you may be able to get more if you book it in advance).
2) Walking down the High Street with pockets bulging with cash is not being careful with your money!
3) Depositing large sums of cash can raise eyebrows and even get you checked out by the money laundering people.

On the bright side there are no tax implications I can think of for your plan. But on the whole I suggest you open them with £1 then arrange BACS transfers to move the money instead. If you can do it online then once set up you can shuffle your money between accounts from the comfort of your armchair whenever you want.

sarcastically_optimistic · 10 October 2008 at 12:03AM

Is a BACS transfare free ? if not how much do they cost ?

Reaper · 10 October 2008 at 12:17AM

Yes they are free. They take 3-4 working days.
Not to be confused with CHAPS transfers that happen in the same day and cost around £30.

If you are banking online they may not call them BACS transfers, they might be "Bill Payments", "Move money" or something similar.

dorisdoris_2 · 10 October 2008 at 11:21PM

thanks-yes that makes sense-will do bank transfer -don't want to be coshed over the head for a few pounds.
cheers

opening new accounts and transferring money

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