What would happen if............

manhattan

You were to withdraw some savings from an online savings account, then the bank went down whilst the money transfer was in transit to your linked account?
:think:

Lokolo

Nothing because its not going to happen.

iltisman

I have had concerns about this too, I wonder who actually has your cash whilst it is being carried at the speed of a 3 legged donkey when a bacs payment is made.

Lokolo

Then try reading up on the FPS.

Oblivion

manhattan wrote: »

You were to withdraw some savings from an online savings account, then the bank went down whilst the money transfer was in transit to your linked account?
:think:

My understanding of this is (and I'm sure a banking expert will correct me if I'm wrong) ... the funds are not deemed as being cleared, even though they show in your linked account, until 10 working days have elapsed. This is to cater for eventualities such as the payer (your savings bank) wanting to challenge the legality of the transfer and claim the payment back ... or, as in your example, the payer going bust and not being able to meet the commitment.

This would mean that if a savings bank goes bust, and 10 clear working days have not elapsed since your linked bank received the funds, the transaction could be reversed. :eek:

Any bankers care to comment?

Dave.

zaccy

"BACS payments take three working days to clear: they are entered into the system on the first day, processed on the second day, and cleared on the third day."

http://en.wikipedia.org/wiki/BACS

Stavros_3

manhattan wrote: »

You were to withdraw some savings from an online savings account, then the bank went down whilst the money transfer was in transit to your linked account?
:think:

Why....has it happened to you

manhattan

Stavros wrote: »

Why....has it happened to you

Not yet :T

Stavros_3

Then don't panic listen to THIS chap

Oblivion

zaccy wrote: »

"BACS payments take three working days to clear: they are entered into the system on the first day, processed on the second day, and cleared on the third day."

http://en.wikipedia.org/wiki/BACS

I appreciate that this is the usual processing timetable, but I'm sure I've seen somewhere that there is a longer period during which a transfer can be 'clawed back' by the sender. Perhaps I've just imagined it, and I can't find any reference to it at the moment on the web ... it's driving me crazy.

If there is no such opportunity, it begs the question as to why so many banks and building societies take up to ten days before showing your deposits as cleared and available funds.

Dave.

McSaver

As long as you get the funds in the other account transferring to then you would be fine.