ICICI Query...

Shinds

Hi all,

For those of you that have an ICICI Hi-Save account... you must have seen the Disclaimer below, when you're logged in:


Disclaimer: Interest is calculated on available balance and not on current balance. Available balance is the balance that has been cleared and the funds are available immediately, current balance includes the cleared funds as well as funds which are yet to be cleared. Normally, clearing of funds takes around three to four working days. The balance shown above is the current balance, which could be different from the available balance, if there are funds that are yet to be cleared, as on the statement date.


Now is this anything to worry about? Could someone just confirm weather the interest is paid on the day the money shows in the account or not?

Thanks

Paul_Herring

Shinds wrote:

Disclaimer: Interest is calculated on available balance and not on current balance. Available balance is the balance that has been cleared and the funds are available immediately, current balance includes the cleared funds as well as funds which are yet to be cleared. Normally, clearing of funds takes around three to four working days. The balance shown above is the current balance, which could be different from the available balance, if there are funds that are yet to be cleared, as on the statement date.

Now is this anything to worry about?

No.

Could someone just confirm weather the interest is paid on the day the money shows in the account or not?

No. Unlike most banks, ICICI shows you when they've had notice of the money arriving, not when it's cleared (usually 3 working days after.) What their disclaimer is saying is "we show you when we know the money's coming, but only pay interest after it's cleared"

Shinds

Thanks - Surely this is bit of a 'con' right?

ING Direct - Pays interest from the day it arrives right?

gt94sss2

Shinds wrote:

Thanks - Surely this is bit of a 'con' right?

ING Direct - Pays interest from the day it arrives right?

All financial institutions including ING Direct pay interest on the 'cleared balance'

Regards
Sunil

Shinds

gt94sss2 wrote:

All financial institutions including ING Direct pay interest on the 'cleared balance'

Regards
Sunil

From ING's site:

5. How long does it take to clear a cheque on my account?
Interest is earned from the third business day and the funds are available for withdrawal from the seventh business day.

e.g.
A cheque is paid into an account on a Monday
Interest starts being earned on the third business day = Wednesday
Cheque is cleared the following Tuesday, on the seventh business day.
Please note that we do not offer a CHAPs facility as there is a fee associated with this service


Now my query is: If I make a transfer on Monday.... the funds should hit my ING account for example on Wednesday... Now Would interest be earned from Wednesday?

Second query - If I did the above into ICICI - Would interest be paid from the Wednesday?

Paul_Herring

Shinds wrote:

A cheque is paid into an account on a Monday

This is when ICICI would post it to your account.

Interest starts being earned on the third business day = Wednesday

This is when other institutions post it to your account. This is also when both start earning interest

Cheque is cleared the following Tuesday, on the seventh business day.

This is when both make the money available for subsequent withdrawl.

Now my query is: If I make a transfer on Monday.... the funds should hit my ING account for example on Wednesday... Now Would interest be earned from Wednesday?

It should (+/- 1 day)

Second query - If I did the above into ICICI - Would interest be paid from the Wednesday?

It should. (+/- 1 day)

darkcloudi

I believe with Bradford and Bingley its a little different, its when it gets to the account not when its available. The quote below is from the frequently asked questions section of the website.

What is the difference between 'processed' and 'available' balance?
The 'available' balance is the actual value of money available to the account holder(s) that can be withdrawn. The 'available' balance will always be displayed on your status bar at the top of the screen.

The 'processed' balance is the total balance of the account and includes transactions that may not have been fully cleared. This is the balance upon which interest is earned on the account.


So I guess from the above you get interest from the day it leaves your nominated account. I guess some companies work differently

Paul_Herring

darkcloudi wrote:

So I guess from the above you get interest from the day it leaves your nominated account. I guess some companies work differently

Indeed. B&B are in the minority. TSB IIRC also do something similar with deposited checks - they credit interest from day 1 instead of when it clears some days later.

kenshaz

Halifax,what procedure do they adopt?

Shinds

Thank you for clearing that up Paul_Herring

Steve_xx

Banks have been warned by the OFT that they must speed up electronic money transfers. See this news atricle:

http://news.bbc.co.uk/1/hi/business/4575049.stm