Personal Finance

how to transfer large amount of $$ ($20k)

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  • Nov 27th, 2014 3:45 pm
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Deal Addict
Mar 10, 2009
2792 posts
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Mississauga

how to transfer large amount of $$ ($20k)

Hi

A few years ago my parents gave me roughly $20k for graduate college with honor.

Now my parents wants to borrow it back to do renovation to their house.

What is the best way to transfer it to them with little fees? I was thinking of getting a bank draft for them to deposit or write a cheque ... will the bank question why? Since it's a large amount of money?

Thanks
58 replies
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Feb 25, 2014
2170 posts
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Mississauga
win-star wrote: Hi

A few years ago my parents gave me roughly $20k for graduate college with honor.

Now my parents wants to borrow it back to do renovation to their house.

What is the best way to transfer it to them with little fees? I was thinking of getting a bank draft for them to deposit or write a cheque ... will the bank question why? Since it's a large amount of money?

Thanks
Nope, unless its cash. Get a bank draft.
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Deal Fanatic
Dec 24, 2005
5853 posts
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$20k is not a large amount of money (to the bank)

write them a cheque
Deal Fanatic
Aug 3, 2014
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If your bank questions you, can't you just say the same thing you wrote here: "Now my parents wants to borrow it back to do renovation to their house"?
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Aug 18, 2005
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Burlington-Hamilton
I hope you realise that when you lend money to a family member, there's a huge number of ways this can go down to hurt your relationship and create a lot of strain in the family.
Even though everyone has good intentions, sometimes these deals get screwed up and people end up never speaking again. $20K will seem like a small amount compared to the relational costs.

In your shoes, I would either tell them you love them too much and value the relationship too much to lend them money, or just give them the money as a gift.
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Deal Addict
Mar 3, 2009
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Ottawa, ON
I would just write a cheque or use email money transfer. ssainani is correct, $20k is not a large amount of money to the bank.
Deal Fanatic
Apr 15, 2004
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Sydney
Lol, how poor are your parents that they need to borrow money from you? If you give that money, you'll never see it again.
Member
Oct 27, 2009
318 posts
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dr_torch wrote: I would just write a cheque or use email money transfer. ssainani is correct, $20k is not a large amount of money to the bank.
Email money transfer wouldn't work, unless you're willing to do 8x transfers, one per day

(due to max daily limits)
Deal Expert
May 30, 2005
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Richmond Hill
Jucius Maximus wrote: I hope you realise that when you lend money to a family member, there's a huge number of ways this can go down to hurt your relationship and create a lot of strain in the family.
Even though everyone has good intentions, sometimes these deals get screwed up and people end up never speaking again. $20K will seem like a small amount compared to the relational costs.

In your shoes, I would either tell them you love them too much and value the relationship too much to lend them money, or just give them the money as a gift.
ItemFinder wrote: Lol, how poor are your parents that they need to borrow money from you? If you give that money, you'll never see it again.
Guys, he got that money for free from his parents for school. They just want it back. Even if he doesn't see the money back ever again, I don't think that's a problem.
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Aug 22, 2011
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ItemFinder wrote: Lol, how poor are your parents that they need to borrow money from you? If you give that money, you'll never see it again.
Wow, that's uncalled for.
Maybe they're doing a 100k reno putting in 80k and borrowing 20k from him?
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Aug 22, 2011
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win-star wrote: Hi

A few years ago my parents gave me roughly $20k for graduate college with honor.

Now my parents wants to borrow it back to do renovation to their house.

What is the best way to transfer it to them with little fees? I was thinking of getting a bank draft for them to deposit or write a cheque ... will the bank question why? Since it's a large amount of money?

Thanks
A personal cheque for 10k this week and another 10k the following week.
Deal Fanatic
Aug 3, 2014
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nickaslt wrote: Email money transfer wouldn't work, unless you're willing to do 8x transfers, one per day

(due to max daily limits)
Daily/weekly limits are not the same for everyone.
Member
Oct 27, 2009
318 posts
64 upvotes
hvwozq wrote: Daily/weekly limits are not the same for everyone.
They are not the same, but max interac can do is 3k per transaction, and there's no way to increase it
Deal Addict
Sep 4, 2011
1155 posts
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Toronto
personal cheque for 20k if your parents are not in a hurry for the $

if they need the money fast then go to your bank to get them a bank draft.
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Feb 19, 2010
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vkizzle wrote: A personal cheque for 10k this week and another 10k the following week.
Oh, so close to the right answer. What exactly is to be accomplished by writing two cheques of $10K each? :eek:

$20K cheque this week. Period. End of story.
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Nov 18, 2007
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Corktown
Save your cheques. Make a bill payment to your parent's line of credit account.
Member
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Feb 22, 2009
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Kitchener, ON
Write a cheque. Or if you are with Hubert Financial or a few other cool banks then you can do a direct deposit into your parent's bank account from your own account quickly and at no cost.
I've written cheques much larger than $20K with no problems. It's only when you deposit large sums of cash (i believe its >= $10K) that the bank is forced to report it. Other options: if your bank is the same as your parents you likely can do a direct transfer right away. And you might even be able to do a bill payment to them if they have a LOC.
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Aug 22, 2011
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Conquistador wrote: Oh, so close to the right answer. What exactly is to be accomplished by writing two cheques of $10K each? :eek:

$20K cheque this week. Period. End of story.
Above 10k it will be reported to FINTRAC and can be on hold for a longer period of time.
Deal Expert
Mar 25, 2005
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vkizzle wrote: Above 10k it will be reported to FINTRAC and can be on hold for a longer period of time.
It's a cheque, not cash. I have transferred much larger amounts without delay.
Deal Expert
Aug 22, 2011
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Kasakato wrote: It's a cheque, not cash. I have transferred much larger amounts without delay.
It's a deposit...cash or cheque falls under the same reporting requirement.

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