Savings

[Deleted User]

I take out £500 cash a month and put it away in a safe place because that's what I prefer to do with savings (I don't want your advice on where to put it so please save your time). Should I collect my bank statements every month and keep them in case of buying a home in future or putting it all in a bank account in case they want to know where the money comes from?

Also, Will that be enough proof if the statements all add up to the amount or will the money be taken off me/reported still?

Alistair31

Does your safe place pay interest?

Devongardener

You’ve just asked the same question in a post a short while ago!

[Deleted User]

Devongardener said:

You’ve just asked the same question in a post a short while ago!

That post has been edited. I posted in the wrong category by accident

Nebulous2

I worked with someone who used to be a miner. He said there was a long-standing right for miners to be paid in cash, a bank van would come to the pit once a week for those who insisted on that. He said when the pit shut he got his redundancy money in cash, took it to a solicitor and bought a house with it. He bought a house, and had never had a bank account.  That was around 40 years ago though- and times have changed. 

No-one will take the money off you. The biggest problem you are likely to have is that people will refuse to deal with you. 

My understanding is that solicitors can interpret the rules differently as to how they confirm the source of funds, but if they aren't happy they will simply refuse to buy the house until they are satisfied. You would need to ask an individual solicitor what they would accept as proof. 

Equally banks aren't going to spend forever following up and confirming your story. They could freeze your account, tell you you are no longer welcome as a customer, and after what could be a lengthy period send you a cheque for the balance in your account. 

InvesterJones

Deleted_User said:

I take out £500 cash a month and put it away in a safe place because that's what I prefer to do with savings (I don't want your advice on where to put it so please save your time). Should I collect my bank statements every month and keep them in case of buying a home in future or putting it all in a bank account in case they want to know where the money comes from?

Also, Will that be enough proof if the statements all add up to the amount or will the money be taken off me/reported still?

What you do with your money doesn't affect where it came from. If you say it came from salary then they'll just need proof of your salary. If they ask for outgoings then your bank statements will show that as well - taking cash out might look like an outgoing so you'd probably need to show proof that you hadn't spent it - easiest done by depositing it somewhere again.

Spoonie_Turtle

Don't forget cash counts as savings for means-tested benefits.  If you go over the £6,000 threshold (of total savings) and don't declare it, you will be committing benefit fraud.

smithers1981

Deleted_User said:

I take out £500 cash a month and put it away in a safe place because that's what I prefer to do with savings (I don't want your advice on where to put it so please save your time). Should I collect my bank statements every month and keep them in case of buying a home in future or putting it all in a bank account in case they want to know where the money comes from?

Also, Will that be enough proof if the statements all add up to the amount or will the money be taken off me/reported still?

How much cash do you currently hold? Be nice to see all my savings in cash! 

[Deleted User]

smithers1981 said:

Deleted_User said:

I take out £500 cash a month and put it away in a safe place because that's what I prefer to do with savings (I don't want your advice on where to put it so please save your time). Should I collect my bank statements every month and keep them in case of buying a home in future or putting it all in a bank account in case they want to know where the money comes from?

Also, Will that be enough proof if the statements all add up to the amount or will the money be taken off me/reported still?

How much cash do you currently hold? Be nice to see all my savings in cash! 

I use this site to ask questions for my father who doesn't know how to use the internet. I wish I knew!

MX5huggy

The money won’t be taken off you, but you will struggle to get the money back into the banking system to buy a house etc. A bank manager friend was saying with the change of £20 notes recently an elderly “mattress stuffer” turned up with £20k plus in old used twenties. The story seemed plausible but there was nothing she could do. 

Bigwheels1111

I had to pay 10k cash into my bank.
From a car sale and 6 of my fruit machines.
7k notes and 3k pound coins.
I ended up paying £300 pound coins a day into my bank and £300 cash, the same into 4 other bank accounts I have.
Then £100 coins and £200 cash into every post office in my area. Took a week but no questions were asked.
Post office would only take £100 in coins a day.