Best and safest way to deposit a six figure sum?
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crosswordman
Posts: 3 Newbie
I have a question about depositing a large amount (£200,000) into a high street bank account.
I was a relatively early adopter of Bitcoin and my initial investment has ballooned. I have successfully transferred about £40,000 to my Cahoot personal account in several transactions over the past few months. Some of this was then transferred to my main account at NatWest.
I have read many posts on this forum and various Bitcoin forums about banks freezing or closing accounts due to apparently "suspicious" or "unexpected" deposits (not always related to Bitcoin). I assumed, at first, that the issue was cash deposits but it appears that bank transfers can also worry banks. My impression is that banks are increasingly risk adverse and are willing to unilaterally terminate accounts due to apparently "unusual" transactions (even if the account owner explains the situation, provides documentation, etc).
The last thing I need is for my NatWest account to be frozen or closed since it contains all my direct debits, standing orders, etc, and I've used it for over 20 years. I also do not want to be reported for fraud or money laundering.
How, then, can I receive £200,000 while minimising risks? What would you do?
My Cahoot account is rarely used and had under £1,000 in it when I started transferring the proceeds of the Bitcoin sales.
The NatWest account is used numerous times per month, has about £25,000 in it, but shows no income as, right now, I am not working.
One idea is to visit my local NatWest branch and arrange a meeting with a manager or someone similar to explain that I would like to make a large deposit. I would be open and upfront about the source of funds (and could provide documentation if required). I could do the same with Cahoot although would have to do this by phone or letter (since it is an internet only bank).
Is this a good idea? What is the best way to receive £200,000? Many thanks.
I was a relatively early adopter of Bitcoin and my initial investment has ballooned. I have successfully transferred about £40,000 to my Cahoot personal account in several transactions over the past few months. Some of this was then transferred to my main account at NatWest.
I have read many posts on this forum and various Bitcoin forums about banks freezing or closing accounts due to apparently "suspicious" or "unexpected" deposits (not always related to Bitcoin). I assumed, at first, that the issue was cash deposits but it appears that bank transfers can also worry banks. My impression is that banks are increasingly risk adverse and are willing to unilaterally terminate accounts due to apparently "unusual" transactions (even if the account owner explains the situation, provides documentation, etc).
The last thing I need is for my NatWest account to be frozen or closed since it contains all my direct debits, standing orders, etc, and I've used it for over 20 years. I also do not want to be reported for fraud or money laundering.
How, then, can I receive £200,000 while minimising risks? What would you do?
My Cahoot account is rarely used and had under £1,000 in it when I started transferring the proceeds of the Bitcoin sales.
The NatWest account is used numerous times per month, has about £25,000 in it, but shows no income as, right now, I am not working.
One idea is to visit my local NatWest branch and arrange a meeting with a manager or someone similar to explain that I would like to make a large deposit. I would be open and upfront about the source of funds (and could provide documentation if required). I could do the same with Cahoot although would have to do this by phone or letter (since it is an internet only bank).
Is this a good idea? What is the best way to receive £200,000? Many thanks.
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Comments
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Talking to someone first is definitely a good idea, just dropping it into an account is not. Make an appointment to see someone at your bank and take any relevant paperwork. Although fincos are very nervous about crypto currencies, they are not actually illegal. People must deposit their gains somewhere, they are not of much use permanently trapped in a digital wallet.I came into this world with nothing and I've got most of it left.0
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Use a cheque.
Make it payable to the Bank or Building Society followed by (presumably) your name (Nationwide actually advises you to write it like this in the sleeve of their chequebook, so 'Nationwide - Mr A Smith')
You write the amount in both words and numbers.
Write the account number and sort code at the top of the cheque.
Write the Bank or Building Society followed by your name, account number and sort code on the back too.
It can't be tampered with, as you're written the banking destination, name and account details on it, on both sides. The more info you include, the harder it is to tamper with. And you will have personally paid it in by hand to the cashier so you see it get paid in.
Also, there is no cap on how much you can write a cheque for, that's why people use them for large quantities of money (Alan Sugar took a photo of his £50 million pound cheque to HMRC last year and tweeted it). You don't have to carry the notes in cash (thought for 200k that would be a lot of cases!), your debit card can't be blocked by the bank or provider for 'suspicious' transactions, you don't risk it going to a wrong account via online/mobile and disappearing in cyber space for some time or waiting for it to be received or depending on an internet connection as it's not electronic despite being a written transaction.
Banks, credit clearing agencies and cashiers deal will incomprehensible amounts of deposits for huge amounts everyday, I doubt they would look upon it as being suspicious.0 -
Don't forget to pay your capital gains tax. HMRC will know because your bank will report the income.0
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camelot1971 wrote: »Don't forget to pay your capital gains tax. HMRC will know because your bank will report the income.
I should have mentioned that I have already calculated the probable CGT and certainly plan to pay. I want to do everything safe and above board, hence my question!0 -
What about an inheritance of similar amount being transferred into an account by the solicitors? Presumably banks expect these kind of transactions?0
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I would consider opening a NS&I account that is capable of receiving electronic payments just for this one payment. The advantage over any other provider is that all of the money is protected, which won't be the case with putting £200K elsewhere. You can then mive it out in smaller chunks to wherever you want it to end up.0
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The most important thing IMO is to have proper paper documentation to show any bank should you have a problem.
I would go with a bank where you have an existing relationship rather than open a new account because the word 'bitcoin' would almost certainly mean an anti money laundering check on you.0 -
Hello there,
Been through similar recently, a reasonable big amount but this was from abroad and not bit coin proceeds.
I enquired at two banks I bank with, HSBC and Santander.
The first issue is that each bank deals with this their own way, there is no set procedure common to all banks.
Also it seems that telling the bank beforehand makes no difference because a branch cannot override automated processes that flag strange transactions. This appears to be done centrally at each bank. Both banks told me this. No point wasting your time.
I decided to transfer all the money into HSBC and then into NS & I. HSBC told me that for incoming credits they don't ask any questions, they ask many questions if you then want to move the money elsewhere.
I received from abroad a first instalment for 100k + and once received I proceeded to CHAPS this in branch.
I was asked what the source was and what is was for. No paperwork was asked but I guess this depends on the level of "jobsworthery" you will get on each given day. I was however invited to joined their premium banking....
I then received another 100k+ from the same source two weeks later and again no questions asked.
Instead of paying 30 quid for another chaps I am nowtransferring this in 25k chucks to my NS &I savings. Done the first transfer a few days ago and no freeze yet...will see what happens when I try a second time....
hope this helps.0 -
Hello there,
Also it seems that telling the bank beforehand makes no difference because a branch cannot override automated processes that flag strange transactions. This appears to be done centrally at each bank. Both banks told me this. No point wasting your time.
Thanks - I don't think the source matters too much. It's more about the size of the deposit and whether it appears different to how the account is conventionally used. Obviously, most people are not regularly depositing six figure sums into a current account.
As you say, software algorithms which effect every bank account are determining whether a transaction should be flagged (or not) so, in that sense, bank staff are powerless. It's not as if they are themselves responsible for deposits to a particular sort code and then the staff at a different branch are responsible for deposits to their sort code.0
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