Sending money to Kaupthing Edge

cheekykid

Went to my bank today to send some money to my Kaupthing Edge account but they won't do it unless I provide to them Kaupthing Edge's address. On their website i can only find this one:
Postal Address
Kaupthing Edge
PO Box 9403
Nottingham
NG9 9DR

Do I use the same?

Factor25

I would say so. This is the address they provided me with over the phone for me to pay any cheques to.

jennifernil

Can you not do a BACS transfer?

cheekykid

jennifernil wrote: »

Can you not do a BACS transfer?

BACS is kinda slow and i figured ill save money if I use telegraphic transfer(TT). The charge is £30 from Lloyds TSB. I have to say i dont like when they ask "why I sent this money" or "what am going to do with it"....they are not the inland revenue. Am not sure am legally obliged to answer to them. Am I?

isofa

BACS transfers take 3 working days into KE... not really slow, and unless you have millions, it'll take longer to recoup the £30 lost from paying for a immediate transfer.

Transfer on Monday AM, it'll be there on Wed PM.

You don't have to tell them what the money is for, they tend to ask to try and sell some of their products/investments instead.

cheekykid

isofa wrote: »

You don't have to tell them what the money is for, they tend to ask to try and sell some of their products/investments instead.

Surely thats right but only to a certain extent? Suppose I suddenly deposit 10millions to my bank account. Am sure they would ask from where I got the money since they have probably some agreement with the state regarding sudden large deposits.

100k at 5% NET is roughly £14-15 per day so whether I do immediate transfer or bacs is the same. I consider my finances a quite personal matter and I don't like their questions.

LongTermLurker

Telgraphic transfer? Now there's a term I haven't heard in a long time - do they still use a teleype machine? (only seen one of those once). I think the modern term is a CHAPS transfer. I agree with Isofa, to be worth paying the £30 fee you would need to be transferring a lot of money from a non-interest-paying account for the KE interest to outweigh the fee.

Let's take an easy calculation and ignore compounding. 6.55%pa/365 days = 0.018% per day, so £35000 @ 0.018% x 3 days = £18.90, so very simply you'd be looking at about £70000 for the fee to be worthwhile. The more interest your existing account pays, the greater the deposit would need to be.

Stick with BACS unless you really have a need to do otherwise - it's simple, efficient, you don't need to quote an address and don't need to state your intentions for the money.

LongTermLurker

cheekykid wrote: »

Surely thats right but only to a certain extent? Suppose I suddenly deposit 10millions to my bank account. Am sure they would ask from where I got the money since they have probably some agreement with the state regarding sudden large deposits.

It's not an agreement with the state; that would come under international anti money laundering regulations, which all UK banks are legally obliged to follow.

100k at 5% NET is roughly £14-15 per day so whether I do immediate transfer or bacs is the same. I consider my finances a quite personal matter and I don't like their questions.

You may have overlooked compounding - 1 day isn't 1/365 of the annual APR

isofa

cheekykid wrote: »

Surely thats right but only to a certain extent? Suppose I suddenly deposit 10millions to my bank account. Am sure they would ask from where I got the money since they have probably some agreement with the state regarding sudden large deposits..

Surely common sense?!

I think we are all safely assuming we've been talking about a few thousand, rather than a few million.

Equally I'm sure different rules apply to billionaires, but this is Money Saving Expert, not millionaires row

If you normally move thousands about in and out, then they can see you are a wealthy client; if you only ever have a few quid in your account and suddenly need to deposit a fortune, it's only fair they'd ask questions!

If you are worth 100K+ then most high street banks have specialist "premier" accounts for such customers too.

First if you tried to deposit such a sum a 10 million, you'd be ushered somewhere to talk to a senior staff member, check would be run regarding money laundering etc.

And if you had 10 million, why on Earth would you be trying to deposit it, it one lump to a standard bank? You'd be dealing with either a wealth arm of a well known bank, or a private bank. :rolleyes:

cheekykid

LongTermLurker wrote: »

It's not an agreement with the state; that would come under international anti money laundering regulations, which all UK banks are legally obliged to follow.

You may have overlooked compounding - 1 day isn't 1/365 of the annual APR

Could you clarify further what is compounding and AER as i cant understand the explanation banks give.
The amount in question is 100k.

LongTermLurker wrote: »

The more interest your existing account pays, the greater the deposit would need to be.

I don't see how. There is a 2 days delay where my money doesn't receive any interest. That's what I take into accout. What my current account interest has to do with this?

LongTermLurker

cheekykid wrote: »

Could you clarify further what is compounding and AER as i cant understand the explanation banks give.
The amount in question is 100k.

Compounding is the effect of earning interest on interest. If you got 1% interest every day (a likely story!) and put in £100k on Monday morning, then at the end of Monday you would have earned £1000 interest and would now have 101000 (no, that's not binary ;))
Tuesday morning you start with 101k and earn 1% (£1010) so by the end of Tuesday you have £102,010

Wednesday earns you £1020.10 in interest, and at the end of the day you have £103,030.10 and so it goes on. By Friday your £100k has grown to £105,101.

AER is the effect of compounding; it's like saying "deposit your money, add interest every day, keep earning interest on the interest you've already earned and the AER is the total interest you'd earn over the year as a proportion of what you initially deposited" - hope that helps.

I don't see how. There is a 2 days delay where my money doesn't receive any interest. That's what I take into accout. What my current account interest has to do with this?

With £100k, you could be right - my (very simple and inaccurate) example showed that more than £70k could be enough to make the fee less than 3 days' interest. Sorry, you're right about the current account interest having no relevance - I was working on the money still earning interest at a lower rate :o

Must admit, with £100k, I wouldn' be putting it in just one bank though, because if anything goes wrong you're only guaranteed to get £35k back and the rest is a bit of a gamble - you'd be better splitting it between 3 banks, but that's your decision.