Temporarily moving savings to parents bank account

jcuurthht
jcuurthht Posts: 332 Forumite
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edited 16 June 2017 at 7:36AM in Savings & investments
I currently have over 85k in my bank account, and therefore want to move 17k to my parents bank account (which pays no interest) while I set up a new savings account.

Are there any legal ramifications of doing this?

Many thanks.

Edit: I am a non-resident, so for me opening a new UK account is very limited, and the process takes a couple of weeks.

Edit 2: The reason I want to do this is funds over 85k are not protected by the Financial Services Compensation Scheme (FSCS).
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  • Robin9
    Robin9 Posts: 12,089 Forumite
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    Why?

    Why not set up a second savings account now ?
    Never pay on an estimated bill
  • jcuurthht
    jcuurthht Posts: 332 Forumite
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    Robin9 wrote: »
    Why?

    Why not set up a second savings account now ?

    I'm in the process of doing that with NS&I, however I am a non-resident, so it takes some time.
  • Browntoa
    Browntoa Posts: 49,298 Forumite
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    Will flag up for money laundering as more than £10,000

    Just open a new account
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  • jcuurthht
    jcuurthht Posts: 332 Forumite
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    Browntoa wrote: »
    Will flag up for money laundering as more than £10,000

    Just open a new account

    What if I pay in two instalments? e.g. 10k & 8k

    Would this actually be considered money laundering?
  • Robin9
    Robin9 Posts: 12,089 Forumite
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    Can we put £17000 for 2 weeks in perspective ?

    You might get £1 a day in interest.

    Why move to your parents account which you say pays no interest?
    Never pay on an estimated bill
  • jcuurthht
    jcuurthht Posts: 332 Forumite
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    Because I have over 85k in my current account.

    Anything over 85k is potentially not protected by the Financial Services Compensation Scheme (FSCS)

    You can read more about it here: http://www.moneysavingexpert.com/savings/safe-savings
  • EachPenny
    EachPenny Posts: 12,239 Forumite
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    jcuurthht wrote: »
    Are there any legal ramifications of doing this?

    Yes.

    What you are proposing, especially as a non-resident, sounds dodgy - you are even asking how to do the transaction with a view to avoiding tripping money laundering controls. It sounds like the £85k limit is being used as a justification for doing something which you shouldn't be doing.

    That is the impression your proposal gives - you might be intending to make this transaction for purely innocent reasons, but it is the impression which counts.

    Get your new savings account set up asap and transfer the money to that. There is a risk to the amount over £85k in the meantime, but how long have you had more than £85k with that bank already?
    "In the future, everyone will be rich for 15 minutes"
  • jcuurthht
    jcuurthht Posts: 332 Forumite
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    EachPenny wrote: »
    Yes.

    What you are proposing, especially as a non-resident, sounds dodgy - you are even asking how to do the transaction with a view to avoiding tripping money laundering controls. It sounds like the £85k limit is being used as a justification for doing something which you shouldn't be doing.

    That is the impression your proposal gives - you might be intending to make this transaction for purely innocent reasons, but it is the impression which counts.

    Get your new savings account set up asap and transfer the money to that. There is a risk to the amount over £85k in the meantime, but how long have you had more than £85k with that bank already?

    Thanks, this was the information I was looking for.

    I recently completed a sale and the funds have been in my account since Monday. I'm currently waiting to receive documents from NS&I to sign and send back with notarised identification.

    I actually just remembered I have a savings account with Halifax that I can use, which will save me any trouble.

    Thanks.
  • Gambler101
    Gambler101 Posts: 580 Forumite
    I dont think any UK bank will go bust in the next 2 weeks lol
    The instructions on the box said 'Requires Windows 7 or better'. So I installed LINUX :D:D
  • EachPenny
    EachPenny Posts: 12,239 Forumite
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    jcuurthht wrote: »
    I actually just remembered I have a savings account with Halifax that I can use, which will save me any trouble.

    A far better solution, which sounds much less dodgy.
    "In the future, everyone will be rich for 15 minutes"
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