House Sale payment Cheque or BACS etc

quattros

Good Evening all  My Parents are in the process of a house sale , Their Solicitors have been in touch reference how we would want the payment they Said they can do it as a Cheque or Bacs payment  I believe , Now what are the Views of people and Security Wise of Either Payment? I Understand the Cheque could take upto 7 days to clear!
Also the Bacs Payment they to pay like £45 .

Another Thing where would be the best place to put the money where they could get interest on it
I know most banks / Building Society’s only offer £85,000 FCSC Security on money.

Thanks in advance.

Slithery

Both payment methods are secure. It just depends on how fast they want the money.

quattros said:

I know most banks / Building Society’s only offer £85,000 FCSC Security on money.

Incorrect, you get cover for up to £1 million for 12 months in their circumstances...
https://www.fscs.org.uk/media/press/2020/aug/thb-coverage-extended/

davidmcn

quattros said:

Good Evening all  My Parents are in the process of a house sale , Their Solicitors have been in touch reference how we would want the payment they Said they can do it as a Cheque or Bacs payment  I believe , Now what are the Views of people and Security Wise of Either Payment? I Understand the Cheque could take upto 7 days to clear!
Also the Bacs Payment they to pay like £45 .

Another Thing where would be the best place to put the money where they could get interest on it
I know most banks / Building Society’s only offer £85,000 FCSC Security on money.

Are you sure it's a BACS payment? That fee sounds more like a CHAPS payment (i.e. same day). BACS can take a few days to clear. Cheques risk being caught up in the Christmas post. No real "security" problems with either other than cheques might go astray in the post.

See elsewhere on this site for bank account recommendations, that's not really a house-selling question:

https://www.moneysavingexpert.com/banking/

AskAsk

i would pay the £45 chaps payment fee.  it will be chaps and not bacs.  there is often a daily limit with bacs so the proceeds will be too high for bacs unless the house is not expensive.

as to where to put the money, savings interest is very poor these days.  you could post that on the savings section of the forum.  85k protection so split it over a few banks if the proceeds is more than 85k.

greatcrested

AskAsk said:

as to where to put the money, savings interest is very poor these days.  you could post that on the savings section of the forum.  85k protection so split it over a few banks if the proceeds is more than 85k.

As slithery says above:

Incorrect, you get cover for up to £1 million for 12 months in their circumstances...
https://www.fscs.org.uk/media/press/2020/aug/thb-coverage-extended/

AskAsk

greatcrested said:

AskAsk said:

as to where to put the money, savings interest is very poor these days.  you could post that on the savings section of the forum.  85k protection so split it over a few banks if the proceeds is more than 85k.

As slithery says above:

Incorrect, you get cover for up to £1 million for 12 months in their circumstances...
https://www.fscs.org.uk/media/press/2020/aug/thb-coverage-extended/

that didn't quote property sale so does it cover that?

greatcrested

See here

https://www.fscs.org.uk/how-we-work/claims-process/temporary-high-balances/

Certain life events could have caused a temporary high balance in your bank account, including:

• Real estate transactions (property purchase, sale proceeds, equity release - relating to your main residence only. This does not have to be a UK property but must relate to your main residence).
• Benefits payable under an insurance policy.
• Personal injury compensation (unlimited amount).
• Disability or incapacity (state benefits).
• Claim for compensation for wrongful conviction.
• Claim for compensation for unfair dismissal.
• Redundancy (voluntary or compulsory).
• Marriage or civil partnership.
• Divorce or dissolution of their civil partnership.
• Benefits payable on retirement.
• Benefits payable on death.
• A claim for compensation in respect of a person's death.
• Inheritance.
• Proceeds of a deceased's estate held by their personal representative.

Scotbot

AskAsk said:

i would pay the £45 chaps payment fee.  it will be chaps and not bacs.  there is often a daily limit with bacs so the proceeds will be too high for bacs unless the house is not expensive.

as to where to put the money, savings interest is very poor these days.  you could post that on the savings section of the forum.  85k protection so split it over a few banks if the proceeds is more than 85k.

Could be BACs, NS&I use BACS for payments between 50k and 2 million so any limit is too high to be relevant unless your parents are multimillionaires selling a house in Chelsea. The fee could be a CHAPS fee or a solicitors fee. Either way both methods are more secure than a cheque. The difference is CHAPS takes 1 day and BACS up to 3.
Slithery is correct you are covered for proceeds from a house sale for up to £1M for 1 year

quattros

Ok thanks for all your Reply’s , I will double check their paper work as is could well be CHAPS payment and think could be Solicitors fees too . 

That’s good that the FSCS will cover higher amounts in accounts , I assume this will be all banks/ building societies under this scheme?

Scotbot

quattros said:

Ok thanks for all your Reply’s , I will double check their paper work as is could well be CHAPS payment and think could be Solicitors fees too . 

That’s good that the FSCS will cover higher amounts in accounts , I assume this will be all banks/ building societies under this scheme?

Not necessarily all banks you need to check on the FSCS website, but if it is a mainstream bank likely to be included.  Also note this is temporary  ( a year from August 2020 from memory) if you are looking for a long term guarantee NS&I guarantees up to 2 million although rates are awful and they  are painfully slow to set up accounts  and withdraw from

quattros

Ok cheers So people would recommend the Solicitor paying the funds to my Parents by CHAPS/BACS  or a cheque payment 
I know they have been told the cheque can be picked up from the branch as its not to far from them