Safely moving a large bank account

londonman81

My guaranteed 3% one year rate has recently expired and I would like to move the balance into a new account at a different bank.


However, due to the very large amount involved, I am slightly concerned about the risks involved in doing the transfer and would therefore like some advice on best way to do it.

1. CHAPS transfer: advantage is it's same day and all in one go so I can know by end of day if it has transferred safely.Costs around 30pounds which I have no issue with.

2. Multiple electronic transfers: Each transfer take 3 days to complete so I will be worried for that time, and I will have to make multiple payments.


What I essentially need to know is what my recourse is in the event that the transfer is somehow 'lost' between sending and receiving??

Is there any safer way to do it?

Thanks

atypical

If it's such a large amount you should make up the cost of the CHAPS in interest that isn't lost during the 3 day period.

Milarky

I take it there is no cheque option?

What is the actual account you are transferring from? They all have specific payment features which affects the advice.

As you've referred to BACS can you clarify if this is a 'online savings' account linked to a particular current account - which you are trying direct funds to?

I would say that BACS is a good, reliable method of payment (if the alternative is 30 pounds and CHAPS doesn't even 'guarantee' transfer - they'll just 'do their best')

BACS I'd say is adequate to the task...

londonman81

Milarky wrote: »

I take it there is no cheque option?

What is the actual account you are transferring from? They all have specific payment features which affects the advice.

As you've referred to BACS can you clarify if this is a 'online savings' account linked to a particular current account - which you are trying direct funds to?

I would say that BACS is a good, reliable method of payment (if the alternative is 30 pounds and CHAPS doesn't even 'guarantee' transfer - they'll just 'do their best')

BACS I'd say is adequate to the task...

There is no cheque book available with my account (Citibank Saver Issue 6 i think it's called).

The main thing I want to know is whether there is any way that the transfer could get 'lost' and in that event, what recourse do I have?

LardyCake

Why not setup a BACS transfer and save the details (assuming the account you are transferring from allows this), do a test transfer of £1 to the new account, check in 3 days time that the £1 has arrived safely and then transfer the main amount?

BigDonut

LardyCake wrote: »

Why not setup a BACS transfer and save the details (assuming the account you are transferring from allows this), do a test transfer of £1 to the new account, check in 3 days time that the £1 has arrived safely and then transfer the main amount?

This is what I did when transferring savings from one bank to another.

In my case, it was a fast payment and was there 5 minutes later so easy to track.

agsnu

atypical wrote: »

If it's such a large amount you should make up the cost of the CHAPS in interest that isn't lost during the 3 day period.

My back of an envelope calculation means you need to be transferring a minimum of £152,592 for this to hold true for a basic rate taxpayer transferring to the top easy access savings account (Nationwide MySave paying 2.99%).

Milarky

agsnu wrote: »

My back of an envelope calculation means you need to be transferring a minimum of £152,592 for this to hold true for a basic rate taxpayer transferring to the top easy access savings account (Nationwide MySave paying 2.99%).

Actually it depends on whether someone (I'm assuming citibank) adds an 'extra' day - thus making a minimum period of three days in your calculation.

Strictly speaking BACS is a 'two day' (or 'D+2' in the new Payment Regulations lingo) transfer - arriving two days from the date it leaves your account. 'Three working days' confuses and misleads IMO. Bankers don't seem to feel obliged to use clear, consistent descriptions - so no wonder customers are also uncertain. [As for things like: '5 to 7 bank-working days', what kind of acid or those people on?]

Loughton_Monkey

Seems your concern is purely over the "safety" of BACS transfer rather than loss of interest, bank going bust, or length of time etc. But personally I've moved tons of money around and never seen any problems. Only when you give wrong details. So a test is always a good idea. Most transfers over Internet give you prinatble receipt and/or reference number.

agsnu

Milarky wrote: »

Actually it depends on whether someone (I'm assuming citibank) adds an 'extra' day - thus making a minimum period of three days in your calculation.

It depends on a load of other things as well - I was simplifying (the obvious large impact would be if your transfer spans a weekend).

No matter what the specifics, in this interest rate environment it's unlikely to be worthwhile purely in "loss of interest" terms without getting near the £50k compensation limit. As the OP was fretting about the safety of BACS transfers, I'd be surprised if their "large" transfer would put them over the limit.

If CHAPS gives you peace of mind, go CHAPS.

G_M

An alternative is to arrange ahead of time for a cash withdrawal. Take a briefcase, jump in the car, and pay in smae day. All within your own control - cash is never out of your sight. Job done.