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So, anyone actually KNOW how the BACS process works?
Comments
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Banks are not "dragging their heels"
Of course they are.
Banks are picking and choosing which payments to use FP with, to the point where I've seen complaints about one bank where two transactions between two accounts for the same amount minutes apart may be transferred using different methods depending on the whim of said bank.Conjugating the verb 'to be":
-o I am humble -o You are attention seeking -o She is Nadine Dorries0 -
Slightly off topic maybe, and perhaps it ought to be in another thread, but....
I have a Yorkshire Building Society Internet Saver and more recently opened a Bradford and Bingley Internet Saver. For the YBS I needed to tell them my LTSB current account details as I need interest monthly. But it wasn't actually a direct debit like for the B&B (there was the standard DD agreement) and the DD shows in my list of DD's online with LTSB.
With YBS I was able to transfer a large lump from my Abbey esaver to YBS by setting up an additional transfer account with YBS. Very useful. I could have transferred without setting up the additional come to think of it.
The downside is the time the money is in limbo in either direction, about 5-6 days, but quicker than from Abbey > LTSB > YBS.
The B&B DD process is also referred to as BACSas you can transfer out of B&B by CHAPS. Because B&B only allow transfers to and from one account, ie my LTSB current account, to minimise loss during transfers, I'm keeping £5000 more than I need in LTSB so when I want to transfer to B&B from YBS, I make a £5000 transfer to B&B, which takes anything upto 6 days to process into B&B. Having said that, it seems the money leaves LTSB and into B&B on the same day. There is another 6 days before that is reflected in the available balance, but I'm told it earns interest as soon as it hits the account. Then I make the YBS to LTSB transfer, which is 5-6 days in limbo.
So having rambled, I wondered why transfers have to be so slow and why do some (most) online savings accounts allow transfer between one account only. I have a Northern Rock esaver account too and I can transfer from YBS to NR with the same 5-6 day limbo as mentioned above. NR will accept Faster Payments from LTSB, though not until next day. Not as fast (~ 3 days) in NR to LTSB direction. So in the case of NR it doesn't have the full restriction of B&B but not the flexibility of YBS.0 -
I've noticed that Halifax started making faster payments about a month ago, but have now stopped again. If you try to make an immediate payment out, you get a message along the lines of "sorry, we are unable to do this at the moment, we will make your payment through our normal bill payments system in 2 days time". I suspect they are just trying to hang on to money.
Companies who have large payment runs from their creditors system often need the 3 day process to check payments before its too late to recall them. If you doing a large payment run on a Monday and send the file to BACS on Tuesday, you can still recall individual payment that day (the processing day) if you discover you have made a major !!!! up.0
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