Will I experience problems opening a savings account with cash?

Ponsienella

For the past couple of years I have been saving money at home as the savings rates were so low it didn't seem worth putting money away in a bank.

However, I now have about £6,000 and I'm a bit worried about having it at home as, although it is is in a safe, it is just one of those fireproof portable ones (which I bought just to store my back-up hard drive and SD cards with my photos on).

I was thinking of opening one of the new savings accounts where a basic rate taxpayer can earn up to £1,000 in interest per year without paying tax on it (not that I'll ever have enough money to generate that amount of interest).

I read in another thread about people being questioned by banks about the origin of their deposits and that has got me worried. How can I prove I have just been putting away money at home?

Will a bank really question me if I put in a £6,000 deposit in £10 and £20 notes?

I know they have to worry about things like money laundering but, as long as I just put it in and leave it in as savings, won't that be okay?

Or should I pay it into my ISA rather than use it for a new account? I didn't have much in that but, due to my hubby receiving a pension lump sum recently, I did transfer £15,240 in it just before the end of the last tax year.

colsten

Ponsienella wrote: »

For the past couple of years I have been saving money at home as the savings rates were so low it didn't seem worth putting money away in a bank.

you could have got 5% or even 6%. https://forums.moneysavingexpert.com/discussion/5374614

Ponsienella wrote: »

Will a bank really question me if I can in a £6,000 deposit in £10 and £20 notes?

quite possibly.

Ponsienella

colsten wrote: »

you could have got 5% or even 6%. https://forums.moneysavingexpert.com/discussion/5374614



quite possibly.

I'm a novice about these things and didn't realise. Was getting a low rate on my ISA so decided it wasn't worth bothering putting it in a bank.

Now that we have some money from my husband's pension and also will have some soon from an inherited house we've been refurbishing, we are trying to be a bit more responsible about saving.

jimjames

Ponsienella wrote: »

I'm a novice about these things and didn't realise. Was getting a low rate on my ISA so decided it wasn't worth bothering putting it in a bank.
.

It's not just the rate of interest but security too. Holding all your savings in cash at home is great until you get burgled or have a fire. Hopefully both are rare events but it's a risk you don't need to take

xylophone

As a first step, you might approach the clerk at the customer service desk at your own bank and explain that you have been saving in cash for a couple of years but now wish to deposit the money in your bank account.

I wouldn't take the money with you for this first enquiry.

Once you have followed the procedure advised by your bank, you and your spouse can take the cash down there and deposit it.

With £6000 you might each consider a TSB Plus and a joint TSB Plus - these can be internally funded with the required £500 a month.

You could open a Tesco current account and transfer in the monthly interest from TSB.

You can have two Tesco current accounts each.

There are other high interest current accounts and associated regular savers that you might consider.

Ponsienella

jimjames wrote: »

It's not just the rate of interest but security too. Holding all your savings in cash at home is great until you get burgled or have a fire. Hopefully both are rare events but it's a risk you don't need to take

I know - you're absolutely right about security. I've been really stupid in thinking it was safe just because the 'safe' is classed as fire-proof. It's blooming portable. How could I have thought it was safe? Lol. Lately I've started to worry about it which is one of the reasons I want to put it in a bank as well as obtaining interest on it.

iainscomputer

I would open the account, but only deposit £2000 in cash. I would drip feed the account with maybe £600 per month until it is all deposited. Just to save on possible aggravation.
Possibly pay some into any other accounts you have & then transfer them across.
No way would I pay it all in in one go, as you have saved it yourself, a paper trail doesn't exist.