Is it safe??

[newjez]

1 hour ago, Ken said:

Money that is held in a client account is 100% still the property of the clients if a business goes bust and can't be used to reimburse other creditors.

Of course when a firm that is supposed to keep client money's in a client account goes bust what you sometimes discover is that the firm has been siphoning funds out of the client account. There's always a tiny risk (no matter how well run and audited they've been in the past) that a firm will start doing fraudulent things. But that applies to Banks and Solicitors not just to money transfer companies.

Technically you can't say there's no risk from using a money transfer company, but what you can say is there's no more risk than using a Bank.

Banks come with a government guarantee depending on the amount.

I know the risk is probably low, but these are unprecedented times we are talking about.

If there was any risk that I could lose my life savings, I would like to know about it, and if there was a way to reduce that risk to zero I would like to know about it.

[Alan Collett]

18 hours ago, newjez said:

Banks come with a government guarantee depending on the amount.

I know the risk is probably low, but these are unprecedented times we are talking about.

If there was any risk that I could lose my life savings, I would like to know about it, and if there was a way to reduce that risk to zero I would like to know about it.

There is never zero risk in matters financial.

All you do is to seek to minimise risk - and remember the risk/reward conundrum!

Best regards.

[newjez]

3 hours ago, Alan Collett said:

There is never zero risk in matters financial.

All you do is to seek to minimise risk - and remember the risk/reward conundrum!

Best regards.

That's not really answering the question Alan. For instance, is it in people's interest in the current situation to break up large transfers to ensure they are within the bank government guarantee of both countries? Is there any insurance that can be obtained?

These are extreme circumstances, and if people can mitigate any potential loss or possible delay, then it would be nice to know what actions they can take.

At the moment, if I was about to send a large amount of money from one country to another, then I would want to know what the different options were so I could make up my own mind.

Just saying it'll never happen doesn't really cut it in what are unprecedented times, when we are quite possibly about to see a lot of things happen that would never happen.

https://www.google.com/url?sa=t&source=web&rct=j&url=https://amp.theguardian.com/money/2010/oct/09/foreign-exchange-money-safe&ved=2ahUKEwjR5aTwtefqAhWTs3EKHYJfACsQFjARegQIAhAB&usg=AOvVaw2RCxkNa1vCL1LBX5tj0FeZ&ampcf=1

Edited July 25, 2020 by newjez

[Alan Collett]

Respectfully, in my opinion you appear to be looking for a solution that probably doesn't exist.

You might open accounts with different banking institutions that give you an ability to access a Government guarantee in the event of a banking failure, but even then as a creditor of a failed institution you could find yourself having to take a haircut in the event of a banking collapse: in such circumstances could a Government step in and actually have the financial ability to secure the interests of all depositors?

You may have to keep your money under the bed and not go outdoors ...

Stay calm, and don't panic!

Best regards.

Edited July 25, 2020 by Alan Collett

[Ken]

On 24/07/2020 at 15:06, newjez said:

Banks come with a government guarantee depending on the amount.

I know the risk is probably low, but these are unprecedented times we are talking about.

If there was any risk that I could lose my life savings, I would like to know about it, and if there was a way to reduce that risk to zero I would like to know about it.

Since we are talking about the proceeds of a house sale I would expect it to be over the amount of the government guarantee. Just leaving it all in one bank is therefore exposing you to risk. By transferring some of it you are mitigating that risk.

[newjez]

5 hours ago, Ken said:

Since we are talking about the proceeds of a house sale I would expect it to be over the amount of the government guarantee. Just leaving it all in one bank is therefore exposing you to risk. By transferring some of it you are mitigating that risk.

I'm not sure of the exact rules, but the UK government did offer enhanced cover after a house sale. But if holding money in a bank for an extended period, then it is quite common to spread the money over several accounts to reduce the risk. Possibly it would be less risky to transfer in chunks equal to the government's guarantee. I'm just asking. I'm not the expert here.

A bank going under probably seems an unrealistic prospect in Australia. It's not that unrealistic in the UK.

You also need to ask whether a company holding 'your' money in a bank has the same protection as you storing your money in a bank. Companies don't have the same cover as individuals.

There is a difference between unlikely and impossible.

To be honest, I had expected a better response than 'she'll be right mate'

Edited July 26, 2020 by newjez

[Tulip1]

4 hours ago, newjez said:

I'm not sure of the exact rules, but the UK government did offer enhanced cover after a house sale. But if holding money in a bank for an extended period, then it is quite common to spread the money over several accounts to reduce the risk. Possibly it would be less risky to transfer in chunks equal to the government's guarantee. I'm just asking. I'm not the expert here.

A bank going under probably seems an unrealistic prospect in Australia. It's not that unrealistic in the UK.

You also need to ask whether a company holding 'your' money in a bank has the same protection as you storing your money in a bank. Companies don't have the same cover as individuals.

There is a difference between unlikely and impossible.

To be honest, I had expected a better response than 'she'll be right mate'

It’s called temporary high balance and protects up to £1m for 6 months on things such as the sale of a house. 

Edited July 26, 2020 by Tulip1

[Ken]

On 26/07/2020 at 20:04, newjez said:

I'm not sure of the exact rules, but the UK government did offer enhanced cover after a house sale. But if holding money in a bank for an extended period, then it is quite common to spread the money over several accounts to reduce the risk. Possibly it would be less risky to transfer in chunks equal to the government's guarantee. I'm just asking. I'm not the expert here.

A bank going under probably seems an unrealistic prospect in Australia. It's not that unrealistic in the UK.

You also need to ask whether a company holding 'your' money in a bank has the same protection as you storing your money in a bank. Companies don't have the same cover as individuals.

There is a difference between unlikely and impossible.

To be honest, I had expected a better response than 'she'll be right mate'

You've hit the nail of the head there. In investment terms it's "diversify your portfolio" or as the old saying goes "don't put all your eggs in one basket". But do remember this discussion is about transferring money it's not about depositing it somewhere so it's not actually going to be sitting in an account anyway.