How easy is it to withdraw a lump sum of cash from YOUR bank?

By Liam On Jun 21, 2024

We asked Britain’s biggest banks what customers need to do to withdraw £5,000

By Helen Kirrane

Updated: 05:58 EDT, June 21, 2024

In recent years, bank customers have found it more difficult to withdraw large sums of their own money from the bank, for example for construction work or the purchase of a used car.

This comes as banks have stepped up their anti-money laundering efforts, saying they are trying to protect customers from fraud attempts.

Some customers are asked for proof of an invoice to withdraw money for construction work, while others are outright denied access to their own money by their bank.

Most banks will ask questions about the purpose of increased cash withdrawals as part of anti-money laundering and fraud controls.

As This is Money’s tax expert Heather Rogers says, paying cash for a job is legal and shouldn’t get you in trouble with your bank.

So how easy is it to withdraw £5,000 from your bank if you need a job or an item that needs to be paid for in cash?

This is Money asked five major banks and Nationwide Building Society what a customer needs to do to withdraw this amount in cash. This is what the banks said…

NatWest

NatWest said: ‘If anyone is withdrawing this type of money they should take their bank card and have their PIN with them.

‘We advise a customer to give us 24 hours’ notice to ensure we can accommodate the request, especially if they want specific denominations, but this is not necessary.

‘Colleagues in the branch may ask questions about the purpose of their withdrawal, but it is important to understand that this is to validate the withdrawal as genuine and protect customers from fraud and scams.’

Santander

Santander said: ‘There is no need to pre-order or call for a withdrawal of this amount.

“Chip and Pin would be used to authenticate the customer, in addition to photo ID.

‘We would also ask some additional questions about the reason for the money to protect the customer and check there was no suggestion of scam or fraud.’

Nationwide

Nationwide said: ‘We will try to offer same-day cash withdrawals over £2,000, although this will depend on the amount of cash available in the branch.

‘To avoid any inconvenience, we ask customers to observe a full working day’s notice period.

‘When they come to collect the money, they must bring ID to prove their name and address.

‘To keep our customers’ money safe and help protect them from scams, we may also be asked some questions about cash withdrawals.’

Barclays

Barclays said: ‘Chip and PIN at the counter in a branch is required to make a withdrawal, but our guidance to customers is to give 24 hours’ notice if the withdrawal is over £2,000.

‘However, if sufficient cash is available and the customer is verified against the bank’s checks and balances, the withdrawal is usually paid to the customer.

‘Usual identity checks and verification will be required to withdraw any amount of this amount, for example a form of photo ID, cleared funds, customer signature etc.

‘We also check the reason for a large withdrawal and whether the customer is satisfied and not the victim of possible fraud or coercion.’

Lloyds

Lloyds Bank said: ‘Lloyds Bank customers can let us know before making any large cash transactions, or we can accommodate most requests on the day, provided they show the required identification (including chip and PIN on their account card and photo ID).

‘For larger transactions we will always carry out additional checks and ask additional questions to protect our customers (for example against fraud), but we cannot share specific details if it is useful to fraudsters.’

HSBC

To withdraw £5,000 at a full or cash service branch, an HSBC customer does not normally need to call ahead, although for larger amounts it is recommended to ensure the cash is available when they need it.

At a banking center with a post office, an HSBC customer could withdraw £5,000, albeit over several days.

To withdraw £5,000 from an ATM, an HSBC customer can request a temporary increase to withdraw larger amounts depending on the type of account they hold (ranging between £1,000 and £2,000 per day).

HSBC may carry out additional checks when withdrawing this amount of money to protect customers from fraud, scams or financial crime.

The experience of a bank customer trying to withdraw £5,000 cash

I wanted to withdraw £5,000 for a patio job I wanted to do, says a This is Money reader who emailed.

I went to the bank to withdraw my money, but they wouldn’t give it to me.

They insisted that I had to have an invoice, but I didn’t have one.

Without question, they refused to give me the money because they thought I might be a victim of fraud.

After several attempts at reasoning, they still refused. At that point I thought about closing my account and withdrawing the money that way.

The cashier replied, “Okay, it’s your money, you can do whatever you want with it.” Obviously not.

The manager then offered me an alternative. She said she would set my card limit to £500 per transaction.

I wasted my time withdrawing the £5,000 in ten days and put myself at risk making the ten runs to the mini bank.

The builder still got his £5,000, but I had to work for it.

A similar story: do you find it difficult to withdraw large sums of cash from the bank? Contact: editor@thisismoney.co.uk

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