Moving a large amount of money

necronom

Hi,

I have just opened an ING Direct account and I now have to move all my money from my other account. I think that I should move it all in one go as soon as possible, but my parents think that smaller transfers would be better.

This is what I have to do: SLB -> Barclays current -> ING
This will probably take about 6 days. Three from SLB to Barc. Then 3 from there to ING.

As I see it, whether I move it in small amounts or one big one, the interest I'll lose while it's in my current account will be the same. I'll just lose it in lots of smaller amounts instead of all in one go. Plus, every day I don't have it in ING I am losing money.

Am I right?

Thanks,

Paul.

Macce

One big transfer would make more sense. You need to start getting the extra interest on ALL your savings ASAP.

If its a very large amount you may want to try doing a dummy transfer of £1 to test the water but I would just transfer it all now. Cant you ask SLB to transfer it direct to ING via a one off direct debit?

necronom

Thanks for the reply.

I asked them if they could transfer it onto my new one, but they said "The balance of the account can only be paid into the external bank account that is linked to it, and not transferred to a savings account."

So I'll have to lose the interest

KD

I've just moved large amount of money about between accounts - I didn't think about this at the time but perhaps it's worth some thought. Why don't you organise simultaneous movements-:

My experience of ING is that they work fantastically fast- money is credited back to current accounts very quickly - faster than the 3 days that's generally quoted. I don't know if it works as quick when they are requesting it - hey but it's worth a try : Get ING to request the money from your current account whilst you're processing your money from SLB to Barclays. Depending on amount- your overdraft limits - you could minimise the 'loss' of interest.

Maybe using overdraft facility could help with smaller transfers- not sure what interest rate you're getting on SLB. On one of the threads on this board someone showed how to do a calculation to determine if it was 'worth' moving money at all - worth scanning the board.

Walletwatch

Not sure about the transfer from SLB to Barclays, but can suggest the following:

(a) Do not initiate the transfer over a weekend. Apart from the lost interest for two extra days, it increases the number of days when u have butterflies in your stomach due to concerns that the money should reach the destination safely.

(b) Check out if it makes sense using a CHAPS transfer by doing a cost-benefit analysis between interest lost in three days of transfer and the fees that Barclays charges for initiating a CHAPs transfer.

GC6094

My wife has an ING account and we regularly transfer funds without any problem, though we were nervous the first time. We have moved up to £20K in one action without any problems so I would recomend just do it.

necronom

KD: I thought about simultaneous movements. My overdraft is only a very small % of the amount I want to move, so I'd have to do a lot of transfers.

I'll have a look for that thread you mentioned.

WW: I was thinking about the weekend problem. Hopefully I can start on Monday, maybe get it to Barclays by Thursday, then send it to ING to get there by Saturday.

The CHAPS charge is £20. If I only gain 2 days of interest I think it won't be worth it. Plus Barclays say "Same day transfer of money to another bank in the UK". It might mean either way, but it does say "to" another bank, not "from".

GC: I'm not really bothered about moving it, it's the loss of something like £40 in interest that is a bit of a pain. I should make it back in a few months I suppose.

Thanks for the ideas.

necronom

I found the thread mentioned earlier.

I will get .52% more with ING (over SLB), so 4.48 (SLB %AER)/.52 (%AER Increase)=8.615 days to make it back for each day in transit. So, 5 days of transit would take 43 days to get back. I think I did that right.

Not too bad. I can live with that.

RedFred_2

Just transferred into ING a large sum, my current bank would only transfer the sum by CHAPS, it the end it was worth paying the extra charge.
By 5pm the next day its in your ING account,(unless it gets pulled for investigation by the banks fraud dept) and there for you to see..

Walletwatch

RedFred wrote:

Just transferred into ING a large sum, my current bank would only transfer the sum by CHAPS, it the end it was worth paying the extra charge.
By 5pm the next day its in your ING account,(unless it gets pulled for investigation by the banks fraud dept) and there for you to see..

5pm the next day sounds late - CHAPS should be same day transfer, provided you do it this morning, it should be visible at the other end this evening...