Bank refusing money?

One of my friends just sold a property recently and made a profit of £50k.
He took the cheque down to his bank (RBS) to make a deposit and was told that they will not accept the full amount of money. He was told that the maximum they will take is £25k and was recommended to pay the remaining £25k into another bank account as RBS is not safe. This was the branch staff that made this statement to him.

This is the first I have heard of a bank refusing money!!??

Just a little tip to take or leave as this certainly is alarming when a bank should be screaming for any cash right now.

Anyone else heard of this happening??



[edit on 25-3-2009 by XXXN3O]

Maybe this is a first?

I thought this was pretty alarming...no?

Nobody heard anything like this?

I do have to add that I am aware of government caps on insurance with deposits during this banking crisis but my friend specifically wanted to put the full amount into his account despite this.

[edit on 31-3-2009 by XXXN3O]

If the staff is telling your friend that his money isn't safe in their bank, I can't think of any clearer hint that not only should your friend take his business elsewhere, but he should immediately close any account he has with that bank and get his money out of there with a quickness.

Yeah, I agree.

I think this is important to mention, especially for anyone who values any money they have left.

I do not have enough money to find out if this is true but it is from a source that I personally would trust.

Im interested to see if anyone has been advised like this?

I work for Lloyds Banking Group (Well, HBoS, who is a part of....you know, don't get me started) and there is a lot of truth to this. The government will ensure about 25-30K. That means if you have anything over that, you lose your money if the bank goes under, so they were right to reject your friend.

The way the banking system is going, there will only be a few left. RBS is in very dangerous territory and LBG is in the same position. The share is yet to go over £1 and due to the controversy surrounding bonuses, the investments the banks need are not coming in.

Internally, there are going to be A LOT of job cuts around the June time, which will cause more selling on the shares, driving the price down further.

A few of the banks were far closer to going bust that is being let on.

reply to post by NoHopeForSome


The last I read the small banks were doing quite well. The article here says 96 percent of the derivatives are held by 5 of the largest banks.

How do you see all of this unfolding?