Transferring large amounts of money between accounts on-line

jhiker

Given that we're urged to keep an eye on savings rates and switch frequently to get the best rates are there restrictions on the amount(s) you can transfer from account to account on-line due to fears of money laundering. Does it depend on the individual banks?
For example, I have 95k sitting in a West Brom BS 'Websaver' doing nothing much at all, can I transfer it all to my Santander current account and then almost immediately out to a newly established BS account (Sainsbury eSaver, maybe) in my name without setting off alarm bells? What's the correct procedure? Anybody run into problems doing such a thing?
Thanks

Hasbeen

jhiker wrote: »

Given that we're urged to keep an eye on savings rates and switch frequently to get the best rates are there restrictions on the amount(s) you can transfer from account to account on-line due to fears of money laundering. Does it depend on the individual banks?
For example, I have 95k sitting in a West Brom BS 'Websaver' doing nothing much at all, can I transfer it all to my Santander current account and then almost immediately out to a newly established BS account (Sainsbury eSaver, maybe) in my name without setting off alarm bells? What's the correct procedure? Anybody run into problems doing such a thing?
Thanks

Some accounts only allow a certain amount limit to be transferred in any one day. Call them and ask.:)

stoozie1

I'm capped at £10k online transactions daily (HSBC). All banks will differ but I think that cap is pretty normal.

eskbanker

See http://www.fasterpayments.org.uk/about-us/transaction-limits

Also, it's generally considered prudent not to have more than £85K in any one institution, as this is the FSCS protection limit.

Finally, do you need that much cash sloshing around, or have you considered investment in its various guises?

racey

I've transferred similar amounts between accounts, including from West Brom, with no problems.

OldMusicGuy

Santander limited me to under £20K per transaction when I was moving money into an Atom Bank account. I spoke to them and they said the max transaction amount was frequently changed, so to "keep trying" until I found what amount would go through. I was transferring 56K to Atom Bank so did it in three separate payments. All worked fine in the end.

Anonymous101

I was limited from a Santander 123 account this time last year when transferring to a solicitor's holding account for a house purchase.

I had to make 3 separate payments in the end but there wasn't a daily limit.

Best to give them a call and explain.

jhiker

eskbanker wrote: »

See http://www.fasterpayments.org.uk/about-us/transaction-limits

Also, it's generally considered prudent not to have more than £85K in any one institution, as this is the FSCS protection limit.

Finally, do you need that much cash sloshing around, or have you considered investment in its various guises?

Thanks to all.
It's a joint account so I guess we have 2x £85k protection.
I don't need ready access to the cash but I know my wife wouldn't want to take a risk with this particular savings pot.
Any low-risk investment strategies I might consider, bearing in mind I'm a novice. Thanks.

MarkFromCornwall

jhiker wrote: »

Anybody run into problems doing such a thing?

Yes. Expect at least one of the transactions to be held while they make checks. Most likely the second transfer out from Santander will result in them freezing the transaction until they have spoken to you on the phone and asked you numerous security questions. So it's best to make the transaction at a time when it is convenient for you to take their calls which can come anything from a few minutes to a few hours after you attempt the transaction. Also make sure you know the answers to the kinds of questions they are likely to ask you, for example, what standing orders you have set up on the account.

eskbanker

jhiker wrote: »

Thanks to all.
It's a joint account so I guess we have 2x £85k protection.
I don't need ready access to the cash but I know my wife wouldn't want to take a risk with this particular savings pot.
Any low-risk investment strategies I might consider, bearing in mind I'm a novice. Thanks.

There are any number of options beyond keeping your money in cash form, including higher contributions to pensions, stocks and shares (via diversified funds, etc), P2P, property....

[Deleted User]

jhiker wrote: »

Given that we're urged to keep an eye on savings rates and switch frequently to get the best rates are there restrictions on the amount(s) you can transfer from account to account on-line due to fears of money laundering. Does it depend on the individual banks?

It most certainly does depend on the bank or building society. Practices vary wildly between them. Although several people have mentioned the Faster Payments Transaction Limits page, it doesn't list all banks (eg Tesco and TSB are notable absentees and Nationwide is the only building society listed). You might conclude from that list that institutions not listed there will transfer money significantly slower. In my experience that's not always the case as, for example, I've found two building societies viz Principality and Leeds that often match the two hour target for Faster Payments. Conversely, although I've been a customer of Santander (and its predecessors) for decades, I've had them hold up my transfers for a couple of days for security checks.

I've found one common trigger for getting delayed by security checks is when you move a very small amount of cash (as I do for a first time check that I have the receiving account details totally correct) and then follow it later with the actual amount I want to transfer. I've got wise to this, so now tend to phone the outgoing institution after I initiate my second transfer online. This has particularly proved its worth with Santander.

My recommendation is,:
- if in doubt, always check by phone with your institution as to their policy before initiating an online transfer
- consider short-circuiting the security check by phoning them after initiating a large outgoing transfer.