Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • crosswordman
    • By crosswordman 7th Mar 18, 3:02 PM
    • 3Posts
    • 0Thanks
    crosswordman
    Best and safest way to deposit a six figure sum?
    • #1
    • 7th Mar 18, 3:02 PM
    Best and safest way to deposit a six figure sum? 7th Mar 18 at 3:02 PM
    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.
Page 1
    • Shakin Steve
    • By Shakin Steve 7th Mar 18, 4:01 PM
    • 1,429 Posts
    • 1,153 Thanks
    Shakin Steve
    • #2
    • 7th Mar 18, 4:01 PM
    • #2
    • 7th Mar 18, 4:01 PM
    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.
    • aj23
    • By aj23 7th Mar 18, 4:12 PM
    • 419 Posts
    • 153 Thanks
    aj23
    • #3
    • 7th Mar 18, 4:12 PM
    • #3
    • 7th Mar 18, 4:12 PM
    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.
    • colsten
    • By colsten 7th Mar 18, 7:23 PM
    • 9,010 Posts
    • 7,757 Thanks
    colsten
    • #4
    • 7th Mar 18, 7:23 PM
    • #4
    • 7th Mar 18, 7:23 PM
    Use a cheque.
    Originally posted by aj23
    Drawn on what account?
    • camelot1971
    • By camelot1971 7th Mar 18, 7:58 PM
    • 719 Posts
    • 1,107 Thanks
    camelot1971
    • #5
    • 7th Mar 18, 7:58 PM
    • #5
    • 7th Mar 18, 7:58 PM
    Don't forget to pay your capital gains tax. HMRC will know because your bank will report the income.
    • crosswordman
    • By crosswordman 7th Mar 18, 8:32 PM
    • 3 Posts
    • 0 Thanks
    crosswordman
    • #6
    • 7th Mar 18, 8:32 PM
    • #6
    • 7th Mar 18, 8:32 PM
    Don't forget to pay your capital gains tax. HMRC will know because your bank will report the income.
    Originally posted by camelot1971
    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!
    • Mojo71
    • By Mojo71 7th Mar 18, 9:42 PM
    • 40 Posts
    • 0 Thanks
    Mojo71
    • #7
    • 7th Mar 18, 9:42 PM
    • #7
    • 7th Mar 18, 9:42 PM
    What about an inheritance of similar amount being transferred into an account by the solicitors? Presumably banks expect these kind of transactions?
    • agrinnall
    • By agrinnall 7th Mar 18, 10:05 PM
    • 20,155 Posts
    • 15,879 Thanks
    agrinnall
    • #8
    • 7th Mar 18, 10:05 PM
    • #8
    • 7th Mar 18, 10:05 PM
    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.
    • jonesMUFCforever
    • By jonesMUFCforever 7th Mar 18, 11:22 PM
    • 24,771 Posts
    • 11,983 Thanks
    jonesMUFCforever
    • #9
    • 7th Mar 18, 11:22 PM
    • #9
    • 7th Mar 18, 11:22 PM
    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.
    What goes around - comes around
    give lots and you will always receive lots
    • MarcoM
    • By MarcoM 8th Mar 18, 10:26 AM
    • 504 Posts
    • 70 Thanks
    MarcoM
    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.
    • crosswordman
    • By crosswordman 8th Mar 18, 9:24 PM
    • 3 Posts
    • 0 Thanks
    crosswordman
    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.
    Originally posted by MarcoM
    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.
    • heathrow
    • By heathrow 9th Mar 18, 7:07 AM
    • 60 Posts
    • 32 Thanks
    heathrow
    I'm working in Saudi Arabia (and have been for the last 8 months).


    I get paid in US Dollars to a US Dollar account with HSBC UK - I then use Fineco to convert to pounds. I am well paid, working as a contractor here in a tax-free environment. Saudi is a country which raises red flags.

    I've successfully been through the HSBC Safeguard process. I know it's successful because they've confirmed that they are content, and will come back to me in 3-5 years.

    The trick seems to be:

    * Be honest.
    * If they leave a message for you, follow up straightaway.
    * Answer ALL their questions. I've seen comments here about how HSBC is doing this is for "marketing"; not true. HSBC was sued in the US for money laundring and as part of it not being shut down it is under enormous pressure to put its house in order.

    You might think their questions are intrusive - they are, but HSBC wouldn't be doing this unless it really had to. It is an expensive process for them and annoys customers and will generate no new revenue for them.

    You might have been a customer for many years but when you opened your first account (e.g. as an apprentice - my mother opened her Midland Bank account in 1963 as a student nurse) they won;t have had anti-money laundering checks.


    Hope this helps.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,975Posts Today

5,951Users online

Martin's Twitter
  • It's the start of mini MSE's half term. In order to be the best daddy possible, Im stopping work and going off line? https://t.co/kwjvtd75YU

  • RT @shellsince1982: @MartinSLewis thanx to your email I have just saved myself £222 by taking a SIM only deal for £7.50 a month and keeping?

  • Today's Friday twitter poll: An important question, building on yesterday's important discussions: Which is the best bit of the pizza...

  • Follow Martin