Large amount in one bank account

eskbanker

Deleted_User wrote: »

In my experience such transfers have to be done on the day into a third party account. It would be highly inadvisable to arrange for all the cash to be paid from an NS&I savings account and risk disaster by it not reaching the 3rd party by the deadline.

I'm beginning to think that your username should be suffixed with "holes" but yes, of course it's advisable not to leave everything to the last moment, that was my point!

We're comparing withdrawals by BACS versus faster payments here, and yes, the former take a couple of days longer than the latter, but it would also be pretty reckless to rely on the latter going through on a same day (or even next day) basis given the risk of security checks for one-off large withdrawals, as well as the transaction limits you referred to earlier, neither of which should be risks when withdrawing from NS&I.

So, yes, anyone looking to use a large lump sum for buying a property should undoubtedly get it all into a transactional account capable of supporting CHAPS in advance, preferably several days ahead, but the fact that BACS is known to take longer shouldn't be seen as a significant disadvantage when planning these timescales.

Where do you suggest OP puts their £200K for the next three months?

Pincher

There are bottlenecks getting large amounts into NS&I, and getting it out.

I spoke to NS&I before I started, and they talked about some sort of end of month accounting thing, so the money is deemed received, so you get interest, but it doesn't show up for quite a few days on the account.

Debit card transfer has a daily limit of ~£99k, but there seems to be some kind clearance buffer so it won't let any more through until previous transactions have actually gone through., which can take days.

Nationwide has a £10k transfer limit per destination per day.

I think it's ~£97k limit per day for taking money out of NS&I, plus the BACS delay.

This is not including cyber attacks, and just plain good old computer outage.

For purchases, I would much rather give the solicitor a cheque, so it clears and sits in their client account, but they just don't want the hassle, because people start asking for interest, not to mention the possibility of hacking theft. The irritating thing is, they then expect you to send the money instantaneously, after all kinds of last minute delays: and suddenly it's your fault.

bowlhead99

Deleted_User wrote: »

In my experience such transfers have to be done on the day into a third party account. It would be highly inadvisable to arrange for all the cash to be paid from an NS&I savings account and risk disaster by it not reaching the 3rd party by the deadline.

Back in post #16 I suggested storing it somewhere 'safe' and then moving it somewhere 'accessible' a short while before you need it...

bowlhead99 wrote: »

You can certainly store it in £85k chunks in different banks, only using 'normal' limits (or in one lump at National Savings & Investments where no FSCS comes into play) and then move it in to Co-op for the last few weeks waiting for completion - that's perfectly allowable, assuming you are able to put the evidence together that there was a purchase going on.

I wouldn't advise having it all in NS&I at the time you need to extract it via some process that might take several days. But NS&I is a perfectly reasonable place to keep it until you get closer to the time.

You are not going to be suddenly surprised that completion is upon you, as you set the completion date during the exchange of contracts phase. So, around or a little before that time, you can move all the money into an account that allows sameday or nextday transfers via CHAPS or Faster Payments.

dales1

"Nationwide has a £10k transfer limit per destination per day."

Actually Nationwide has a £10k limit on Faster Payments per transaction.
But you can do multiple transactions, even to the same payee, per day.
I have transferred over £100,000 to the same payee in a day.
Alternatively you can pay for a CHAPS transfer of any size.

Dales.

Pincher

dales1 wrote: »

"Nationwide has a £10k transfer limit per destination per day."

Actually Nationwide has a £10k limit on Faster Payments per transaction.
But you can do multiple transactions, even to the same payee, per day.
I have transferred over £100,000 to the same payee in a day.
Alternatively you can pay for a CHAPS transfer of any size.

Dales.

I tried about a month ago, and it just wouldn't let me do more than £10k for one destination. The first one went though OK, and the subsequent ones failed. Fortunately, I had several current accounts, so ~£10k to three different destinations moved the money out of Nationwide.

Well, I usually keep it under £10k, just in case it triggers some sort of money laundering threshold. Must say desperate attempt to transfer money out should have triggered some kind of hacking/scam alarm, but not a pip out of them.

10 x £10k in one day, and they didn't call you to check?
That would worry me more.

dales1

Yep, they never call to check.

But any hacker would need to log in to my account which wouldn't be easy, and I reassure myself that it would be Nationwide's fault (not mine) if it succeeded.
And the hacker wouldn't easily know I had £100,000 (in passing) in my current account. I doubt NWide would let my account go that far overdrawn - even for me !

2 x 10k worked OK last week, and again the week before.

I prefer it that way than Santander's way. Santander simply blocked a large transfer without even telling me so - and they couldn't understand why I complained so bitterly (before resolving never to do business with them again).

teddysmum

As the OP obviously hasn't taken the trouble to earn any interest , why not take the max amount of premium bonds, as they are safe and could net quite a few prizes over a short period and are easily wit drawn ?

2010

10x£10k can be done with N/wide.

Also I would say it`s safer than most banks as a card reader has to be used.

I would stick it all in NS&I and about 10 days before exchage of contracts start moving it to your nominated bank and then use CHAPS.

ColdIron

teddysmum wrote: »

why not take the max amount of premium bonds, as they are safe and could net quite a few prizes over a short period and are easily wit drawn ?

You will only be entered for the draw after you have held your PBs for a full calendar month, so that's June. The OP wants the money in three months, that's July