Making a Large Payment - Safer via Cheque or Bank Transfer?

xlnc99

First and foremost - its a legitimately transaction. Its a large loan that was lent years back in small amounts via bank transfer. My question is if i was to pay the loan back what is the best way to avoid all the usual checks, questions and answers.

For example a £60,000 bank transfer in one go (that would raise questions asking me where its going etc. I dont really want to tell them it was a loan from a friend a long time ago)
Small amounts of £10,000 per day or every other day

Cheque for the full amount - Will this be straightforward, cash it in and money goes through. Its been years since ive used a cheque to make a payment

born_again

Either way could trigger a check.
TBH. Just go for a £60K bank payment and if questioned. Simply tell the truth. If you spread it out in smaller amounts it will look even more suspicious.

xlnc99

This is my fear. I just dont want to explain to the bank that i was given a loan many years ago and i am paying it back. Even though its the truth, it will cause more questions and answers and asking me why, where did it go etc etc. Even though the loan was all done via bank transfer previously years ago with a different bank account i had and in stages not in one big go. This is a road i do not want to go down. 

Naturally they will ask 60k is a big amount why where who and when etc.

kuratowski

I agree one payment is less suspicious than several smaller payments.

I've transferred large amounts like that without having to even talk to anyone (when buying a house).

This is presumably over the faster payments limit, but you can use CHAPS, there's usually a fee of £25 or thereabouts.

Wheres_My_Cashback

You won't easily be able to move 60K in one go if online due daily payment limitations (unless using CHAPS)  with most banks, but will via a branch visit as long as you provide ID.
Moving £10K per day online for 6 days or £20k for 3 days should not generate any issues whatsoever unless you have markers on your accounts.
Me thinks a little paranoia here !

Wheres_My_Cashback

Mickey666 said:

As for which method is safer, giving your friend a cheque by hand would seem pretty safe to me.  For a large transfer to an account I've never previously paid into, I would first transfer £1 and then confirm with the intended recipient that the money went into their account, just to confirm everyone has the numbers right, then I'd send the balance.

Many people send £1 to new accounts to check there up and running, no problem.
Sending a £1 payment followed by a large sum is a sure fire way to trigger a check and delay a payment as its a typical fraudsters SOP when gaining access to an account. Start with a test, then empty !

xlnc99

kuratowski said:

I agree one payment is less suspicious than several smaller payments.

I've transferred large amounts like that without having to even talk to anyone (when buying a house).

This is presumably over the faster payments limit, but you can use CHAPS, there's usually a fee of £25 or thereabouts.

Mickey666 said:

AIUI, all the checks and questions are mostly for your benefit, to help ensure you are not being scammed and that you fully understand what you're doing.  The bank is unlikely to actually stop you making the transfer unless they have good grounds for believing there would be some sort of offence involved, eg money laundering, fraud etc.  If the transaction is truly legitimate then you'll be able to justify it, won't you?  The bank won't care if it's repaying a loan or buying a boat, that's your choice and none of their business, they just want to ensure it's legitimate.

As for which method is safer, giving your friend a cheque by hand would seem pretty safe to me.  For a large transfer to an account I've never previously paid into, I would first transfer £1 and then confirm with the intended recipient that the money went into their account, just to confirm everyone has the numbers right, then I'd send the balance.

Legitimate transfer - a loan was given to me by the same person over the course of a few months totalling quite a bit. Simple case of me giving it back, rather do it one go then smaller amounts. Just dont want them to ask why and what it was for? Its a personal nature. Wheres_My_Cashback said:

You won't easily be able to move 60K in one go if online due daily payment limitations (unless using CHAPS)  with most banks, but will via a branch visit as long as you provide ID.
Moving £10K per day online for 6 days or £20k for 3 days should not generate any issues whatsoever unless you have markers on your accounts.
Me thinks a little paranoia here !

Perhaps that maybe the way forward. Smaller amounts over the course of a week or two. I believe 10k is the threshold for most banks without any questions asked. Already have done smaller payments to the account so i do know its his own bank account which he has had for years

xlnc99

kuratowski said:

I agree one payment is less suspicious than several smaller payments.

I've transferred large amounts like that without having to even talk to anyone (when buying a house).

This is presumably over the faster payments limit, but you can use CHAPS, there's usually a fee of £25 or thereabouts.

what was the amount of the house transfer. shocked they did not ask you why and where the money was coming from or going too? Was it to a solicitors? Chaps maybe the way forward, no questions asked

kuratowski

More than £60k.  My bank allows me to initiate CHAPs payments online.  However as you say it was going to a solicitor's account, and maybe they recognised that and hence it wasn't flagged as unusual, as it is very common for people to transfer large amounts to solicitors for house purchases.

xlnc99

Yes i believe that is why it was not flagged up. Solicitors are usually safe for transfers more often then not and are not flagged up

J_B

Wheres_My_Cashback said:

Moving £10K per day online for 6 days or £20k for 3 days should not generate any issues whatsoever unless you have markers on your accounts.

We've had an account with First Direct for about 30 years now.

Last month I transferred £400 to our currency broker's account - when I tried to do the same the next day, they blocked the payment!

When DD2 bought her first house, I was helping her with the admin stuff when suddenly we had an email from solicitor saying, you can have the keys, just send us the 45k (?) deposit .... but how to send that in one go? 'We' made five payments of 9K from various accounts and it all sailed trough without an issue