moving large sum into bank accounts

JeffMason

badger09 said:

CAVEAT I'm not an expert on FSCS temporary high balance cover, but I'm confident the 'Inheritance' category doesn't apply 6 years after the event!

However, FSCS website does mention property purchase as well as property sale. I think this is to cover the situation where someone needs to gather more than £85k in one account before transferring to solicitor/conveyancer (though presumably this could be avoided by transferring in 2 or more smaller sums)

NS&I Income Bonds could be used for the whole amount, BUT they can only be bought by debit card or cheque from a bank account in your name, so its not possible to have a direct payment to NS&I from the company holding the investment. Could you ask them to make 2 separate payments, to different accounts, or to one account on consecutive days? Otherwise, watch your bank account like a hawk and as soon as the credit appears, buy your Income Bonds, so the money is in your account for a very short time.

It might be an idea to warn your bank of a large incoming deposit, but as most security checks are automated, this is unlikely to have any effect.

Finally, you'd have to be incredibly unlucky for your bank to go bust on the very day your funds are credited  

Yes, I would assume that wouldn't count that long after either. I did inherret the money, which is why it exists, but I've just left in in the bond until I wanted to spend it, which will be within the next few months. 

I'm sure they'd be able to make seperate payments to different accounts and/or on different days.

And I will be talking to my bank about it.

I'm still thinking that splitting the money and sending it to different accounts could be a good idea! 

I feel like I might need to talk to some sort of expert about how best to manage this though. It's all feels quite complicated and I'm incredibly nervous about it!

badger09

JeffMason said:

badger09 said:

CAVEAT I'm not an expert on FSCS temporary high balance cover, but I'm confident the 'Inheritance' category doesn't apply 6 years after the event!

However, FSCS website does mention property purchase as well as property sale. I think this is to cover the situation where someone needs to gather more than £85k in one account before transferring to solicitor/conveyancer (though presumably this could be avoided by transferring in 2 or more smaller sums)

NS&I Income Bonds could be used for the whole amount, BUT they can only be bought by debit card or cheque from a bank account in your name, so its not possible to have a direct payment to NS&I from the company holding the investment. Could you ask them to make 2 separate payments, to different accounts, or to one account on consecutive days? Otherwise, watch your bank account like a hawk and as soon as the credit appears, buy your Income Bonds, so the money is in your account for a very short time.

It might be an idea to warn your bank of a large incoming deposit, but as most security checks are automated, this is unlikely to have any effect.

Finally, you'd have to be incredibly unlucky for your bank to go bust on the very day your funds are credited  

Yes, I would assume that wouldn't count that long after either. I did inherret the money, which is why it exists, but I've just left in in the bond until I wanted to spend it, which will be within the next few months. 

I'm sure they'd be able to make seperate payments to different accounts and/or on different days.

And I will be talking to my bank about it.

I'm still thinking that splitting the money and sending it to different accounts could be a good idea! 

I feel like I might need to talk to some sort of expert about how best to manage this though. It's all feels quite complicated and I'm incredibly nervous about it!

It really isn't complicated at all, though I accept its a substantial sum.

I don't know anything about SJP's Investment Bond, whether you have to sell the whole thing, or can sell part of it, or whether they charge to buy & sell investments. (I do know they are expensive, but that's for another time)

Most platforms will allow you to sell investments, hold that cash for you, then transfer the cash out to your nominated current account when you ask them to. Often this can all be done online. Have you actually asked SJP about the mechanics of selling your Investment Bond and accessing the proceeds? If not, then surely that's your starting point.

JeffMason

badger09 said:

JeffMason said:

badger09 said:

CAVEAT I'm not an expert on FSCS temporary high balance cover, but I'm confident the 'Inheritance' category doesn't apply 6 years after the event!

However, FSCS website does mention property purchase as well as property sale. I think this is to cover the situation where someone needs to gather more than £85k in one account before transferring to solicitor/conveyancer (though presumably this could be avoided by transferring in 2 or more smaller sums)

NS&I Income Bonds could be used for the whole amount, BUT they can only be bought by debit card or cheque from a bank account in your name, so its not possible to have a direct payment to NS&I from the company holding the investment. Could you ask them to make 2 separate payments, to different accounts, or to one account on consecutive days? Otherwise, watch your bank account like a hawk and as soon as the credit appears, buy your Income Bonds, so the money is in your account for a very short time.

It might be an idea to warn your bank of a large incoming deposit, but as most security checks are automated, this is unlikely to have any effect.

Finally, you'd have to be incredibly unlucky for your bank to go bust on the very day your funds are credited  

Yes, I would assume that wouldn't count that long after either. I did inherret the money, which is why it exists, but I've just left in in the bond until I wanted to spend it, which will be within the next few months. 

I'm sure they'd be able to make seperate payments to different accounts and/or on different days.

And I will be talking to my bank about it.

I'm still thinking that splitting the money and sending it to different accounts could be a good idea! 

I feel like I might need to talk to some sort of expert about how best to manage this though. It's all feels quite complicated and I'm incredibly nervous about it!

It really isn't complicated at all, though I accept its a substantial sum.

I don't know anything about SJP's Investment Bond, whether you have to sell the whole thing, or can sell part of it, or whether they charge to buy & sell investments. (I do know they are expensive, but that's for another time)

Most platforms will allow you to sell investments, hold that cash for you, then transfer the cash out to your nominated current account when you ask them to. Often this can all be done online. Have you actually asked SJP about the mechanics of selling your Investment Bond and accessing the proceeds? If not, then surely that's your starting point.

I haven't asked them as yet. I am aware that their advice might be biased towards keeping the money with them (as they have been when discussing options in the past) and I wanted to get an outside perspective and further information and options before talking to them direct. 

I think you are right though, I will now talk to them this week. I hope, as you suggest, they can allow me to sell the investments and hold onto the cash and send to current accounts when asked. That sounds like a good solution. 

JeffMason

So SJP can't turn it into cash and can only transfer it to one bank account. Do I go with my long term, used every day, TSB account or used once a month to bounce money back and forth HSBC Advance account? 

I've also been told that above 85k wont be FSCS covered in one account unless I already have a property sale agreed. So I'm going to have to move percentages of this money to other bank accounts immediately to keep all amounts under 85k.

I have a Santander and a Marcus account too. Any thoughts on how best to do the transfers without getting tons of issues?

(I've spoken with TSB who said that telling them in advance doesn't do anything as any potential security checks are automated. HSBC said something similar).

wmb194

Transfer it to the current account which Marcus is linked to if it's the planned destination for some of it. I think you're worrying too much. SJP isn't small fry, the bank will understand what it is and does, and none of those banks you've mentioned are going to fail overnight.

JeffMason

wmb194 said:

Transfer it to the current account which Marcus is linked to if it's the planned destination for some of it. I think you're worrying too much. SJP isn't small fry, the bank will understand what it is and does, and none of those banks you've mentioned are going to fail overnight.

Thank you! I think it is that I'm nervous about it and wanted to make sure I'd covered all bases to avoid problems, but I agree that you're right and I'm over complicating it!

badger09

badger09 said:

CAVEAT I'm not an expert on FSCS temporary high balance cover, but I'm confident the 'Inheritance' category doesn't apply 6 years after the event!

However, FSCS website does mention property purchase as well as property sale. I think this is to cover the situation where someone needs to gather more than £85k in one account before transferring to solicitor/conveyancer (though presumably this could be avoided by transferring in 2 or more smaller sums)

NS&I Income Bonds could be used for the whole amount, BUT they can only be bought by debit card or cheque from a bank account in your name, so its not possible to have a direct payment to NS&I from the company holding the investment. Could you ask them to make 2 separate payments, to different accounts, or to one account on consecutive days? Otherwise, watch your bank account like a hawk and as soon as the credit appears, buy your Income Bonds, so the money is in your account for a very short time.

It might be an idea to warn your bank of a large incoming deposit, but as most security checks are automated, this is unlikely to have any effect.

Finally, you'd have to be incredibly unlucky for your bank to go bust on the very day your funds are credited  

You haven't said how much is involved, but my advice would be as above, to use NS&I Income Bonds as a temporary home until you're ready to make your house purchase. Obviously you'll need to channel the investment proceeds through a current account and I would suggest TSB, rather than a little used HSBC account.

The deposit from SJP should not raise any 'flags' at TSB, but I'd make sure you have alternative access to some money, just in case they do temporarily freeze your account. Please report back when its all gone through.

JeffMason

badger09 said:

badger09 said:

CAVEAT I'm not an expert on FSCS temporary high balance cover, but I'm confident the 'Inheritance' category doesn't apply 6 years after the event!

However, FSCS website does mention property purchase as well as property sale. I think this is to cover the situation where someone needs to gather more than £85k in one account before transferring to solicitor/conveyancer (though presumably this could be avoided by transferring in 2 or more smaller sums)

NS&I Income Bonds could be used for the whole amount, BUT they can only be bought by debit card or cheque from a bank account in your name, so its not possible to have a direct payment to NS&I from the company holding the investment. Could you ask them to make 2 separate payments, to different accounts, or to one account on consecutive days? Otherwise, watch your bank account like a hawk and as soon as the credit appears, buy your Income Bonds, so the money is in your account for a very short time.

It might be an idea to warn your bank of a large incoming deposit, but as most security checks are automated, this is unlikely to have any effect.

Finally, you'd have to be incredibly unlucky for your bank to go bust on the very day your funds are credited  

You haven't said how much is involved, but my advice would be as above, to use NS&I Income Bonds as a temporary home until you're ready to make your house purchase. Obviously you'll need to channel the investment proceeds through a current account and I would suggest TSB, rather than a little used HSBC account.

The deposit from SJP should not raise any 'flags' at TSB, but I'd make sure you have alternative access to some money, just in case they do temporarily freeze your account. Please report back when its all gone through.

It's around 190k. And I will keep cash in another account just in case. Thank you! I'll report back when it's done...

badger09

JeffMason said:

badger09 said:

badger09 said:

CAVEAT I'm not an expert on FSCS temporary high balance cover, but I'm confident the 'Inheritance' category doesn't apply 6 years after the event!

However, FSCS website does mention property purchase as well as property sale. I think this is to cover the situation where someone needs to gather more than £85k in one account before transferring to solicitor/conveyancer (though presumably this could be avoided by transferring in 2 or more smaller sums)

NS&I Income Bonds could be used for the whole amount, BUT they can only be bought by debit card or cheque from a bank account in your name, so its not possible to have a direct payment to NS&I from the company holding the investment. Could you ask them to make 2 separate payments, to different accounts, or to one account on consecutive days? Otherwise, watch your bank account like a hawk and as soon as the credit appears, buy your Income Bonds, so the money is in your account for a very short time.

It might be an idea to warn your bank of a large incoming deposit, but as most security checks are automated, this is unlikely to have any effect.

Finally, you'd have to be incredibly unlucky for your bank to go bust on the very day your funds are credited  

You haven't said how much is involved, but my advice would be as above, to use NS&I Income Bonds as a temporary home until you're ready to make your house purchase. Obviously you'll need to channel the investment proceeds through a current account and I would suggest TSB, rather than a little used HSBC account.

The deposit from SJP should not raise any 'flags' at TSB, but I'd make sure you have alternative access to some money, just in case they do temporarily freeze your account. Please report back when its all gone through.

It's around 190k. And I will keep cash in another account just in case. Thank you! I'll report back when it's done...

In that case, definitely NS&I. I would get an NS&I account set up in advance of the funds appearing in your current account.

I've had a quick look but couldn't see what TSB's daily faster payment and debit card limits are. Find out, so you'll know how quickly you can move the £190k. You might consider the cost of a one off instant CHAPs payment worthwhile, though you'll have to go into branch for that. 

Hope it goes through smoothly for you
  

JeffMason

badger09 said:

JeffMason said:

badger09 said:

badger09 said:

CAVEAT I'm not an expert on FSCS temporary high balance cover, but I'm confident the 'Inheritance' category doesn't apply 6 years after the event!

However, FSCS website does mention property purchase as well as property sale. I think this is to cover the situation where someone needs to gather more than £85k in one account before transferring to solicitor/conveyancer (though presumably this could be avoided by transferring in 2 or more smaller sums)

NS&I Income Bonds could be used for the whole amount, BUT they can only be bought by debit card or cheque from a bank account in your name, so its not possible to have a direct payment to NS&I from the company holding the investment. Could you ask them to make 2 separate payments, to different accounts, or to one account on consecutive days? Otherwise, watch your bank account like a hawk and as soon as the credit appears, buy your Income Bonds, so the money is in your account for a very short time.

It might be an idea to warn your bank of a large incoming deposit, but as most security checks are automated, this is unlikely to have any effect.

Finally, you'd have to be incredibly unlucky for your bank to go bust on the very day your funds are credited  

You haven't said how much is involved, but my advice would be as above, to use NS&I Income Bonds as a temporary home until you're ready to make your house purchase. Obviously you'll need to channel the investment proceeds through a current account and I would suggest TSB, rather than a little used HSBC account.

The deposit from SJP should not raise any 'flags' at TSB, but I'd make sure you have alternative access to some money, just in case they do temporarily freeze your account. Please report back when its all gone through.

It's around 190k. And I will keep cash in another account just in case. Thank you! I'll report back when it's done...

In that case, definitely NS&I. I would get an NS&I account set up in advance of the funds appearing in your current account.

I've had a quick look but couldn't see what TSB's daily faster payment and debit card limits are. Find out, so you'll know how quickly you can move the £190k. You might consider the cost of a one off instant CHAPs payment worthwhile, though you'll have to go into branch for that. 

Hope it goes through smoothly for you
  

I'm defintely going to set up an NS&I account ASAP - thanks!
I think these are the limits for TSB so should be okay:
https://www.tsb.co.uk/business/payment-services/faster-payments/

EDIT - oops - that's the business account version. But I spoke to TSB who told me there is a 25k daily limit but higher amounts can be done in branch for £30 via CHAPS.