Payments taken 4 weeks later?

Joe_Bloggs

I sweep my money manually to where it is needed urgently from where it was earning interest. Lets say you have £500 in a savings account and £100 in your current account. Should anything unexpected happen and long forgotten bills turn up then you would be in overdraft territory. This triggers bank charges for many and even more money for the banks.

Since the banks already have the right to set off they could take the money from the £500 to avoid the bank charges. Will they do this ? The answer is no as it would costs them the penalty charges that they are levying. Thus my claim for a right to sweep.

Given faster payments an account holder could nominate a savings account that could be used to supplement the demands on a current account. There would be no loss of interest as these transfers are near instantaneous.
J_B.

Mikeyorks

Joe_Bloggs wrote: »

Given faster payments an account holder could nominate a savings account that could be used to supplement the demands on a current account.

As previously - no. If the savings account is with the same bank as the current account - it's an internal transfer, you don't need FP. And I can do that - doesn't need my Bank.

If the Savings account is elsewhere - the current account can't draw down via FP. They have to be pushed ... not sucked. Only DD has that sort of functionality - and it's a 3 day cycle and will remain so. It doesn't generate 'float' .... so there's no intention of harnessing it to FP.

Joe_Bloggs

In a 'sweep back' situation the account holder gives a mandate to the bank to 'suck' funds from nominated accounts. If they are held internally then then there is no excuse for not providing the facility at present.
J_B.