moving large sum into bank accounts

badger09

JeffMason said:

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.

Yes, when I had my 'quick look', that's all I could find. In your shoes, I'd probably bite the bullet and go into branch.

JeffMason

The only thing that now worries me is when I actually need the money to buy a house. With both Marcus and NS&I it seems money can only come from and be sent back to one nominated bank account - so I'd be sending it from TSB and then when needed to spend, sending back to TSB and then onto wherever it needs to go to next. It's a shame I can't send it directly from the savings account... But I guess that's not a big deal...?

polymaff

JeffMason said:

The only thing that now worries me is ...

Jeff, mate, if this pile of free money is driving you to distraction, just give it to charity.

JeffMason

polymaff said:

JeffMason said:

The only thing that now worries me is ...

Jeff, mate, if this pile of free money is driving you to distraction, just give it to charity.

Haha. The thing that worries me is losing it!

colsten

JeffMason said:

The only thing that now worries me is when I actually need the money to buy a house. With both Marcus and NS&I it seems money can only come from and be sent back to one nominated bank account - so I'd be sending it from TSB and then when needed to spend, sending back to TSB and then onto wherever it needs to go to next. It's a shame I can't send it directly from the savings account... But I guess that's not a big deal...?

It's a safety feature to reduce the likelihood that you lose your money to a hacker. They would not just have to hack your savings account but also your current account, and would have to be able to set up a new payee on your current account before they could syphon of your hard-earned. It's like Fort Knox. You should be pleased.