Where's my Money? (Bank transfer)

asdaprice

Hi
I rang my bank yesterday and arranged to transfer a large amount of money from my current account to another person's account - the operator said it would leave my acct Monday and appear in the other account Wednesday

I know I should have asked them this ... but where will my money be on Tuesday ... and more to the point, who is earning interest on it ... actually I think I know the answer...NOT ME!

kenshaz

asdaprice wrote:

Hi
I rang my bank yesterday and arranged to transfer a large amount of money from my current account to another person's account - the operator said it would leave my acct Monday and appear in the other account Wednesday

I know I should have asked them this ... but where will my money be on Tuesday ... and more to the point, who is earning interest on it ... actually I think I know the answer...NOT ME!

Electronic transfer ,according to the banks can take 4 to 5 working days ,your money is in the system ,and the bank are probably gaining.The government are putting pressure on the banks to speed this process up ,so it will happen,eventually ,like your money transfer

asdaprice

I thought so - if my bank are reading this....if you had speeded things up, I may have kept that large deposit with you longer instead of transfering it elsewhere!

kenshaz

You could have used chaps ,same day transfer ,but that would have cost about £20

YorkshireBoy

The OFT are chairing a 'Payment Systems Task Force' looking into transfer times and, like Al Mac says above, some improvements are due late 2007.

Search the OFT's website for bacs transfers same day, and check out the press release* at the bottom of the results page for more information.

OFT wrote:

* The new clearing service will provide at least same day or next day clearing depending on the time of day the payment is initiated.

malky39

what i want to know about this is, i put a request for a transfer from NW c/a to a a&l savings account. Money came out NW on 25th sept and did not apper in a&l account untill 30th september, so my question is where is my money during this time as its in neither of my accounts earning interest so who is getting the interest.

jonesMUFCforever

You could always use a cheque to make payments.
That way you would get interest until the cheque is debited from your account.

malky39

i could but it is easier to do it online

jonesMUFCforever

malky39 wrote:

i could but it is easier to do it online

Well now you know there's nothing like a free lunch is there.

PBA

The other side of the question is - who paid for the transfer? You can't reasonably expect a bank to provide it's services for free, and in this case the charge for the service is the 1-2 days of interest lost during clearing. You do of course have the choice of paying £20 for a CHAPS transfer, or physically taking the money from one bank to the other in cash if you'd rather it got there the same day.

YorkshireBoy

PBA wrote:

You can't reasonably expect a bank to provide it's services for free...

In that case, UK banking is in for a major shake-up next year.

We're expecting/going to get same day free transfers, and 'expect' the banks et al to...

1. Give up the £20-30 they receive now for conducting CHAPS transfers.
2. Invest in the infrastructure to deliver same day free BACS transfers.
3. Lose out on the chance to 'make money' on the transferred amount for 2-3 days.

Given that they're also going to lose the 'default charge' revenue, once the OFT has completed it's investigation, the banks have some substantial revenue to generate from somewhere, if they're going to keep shareholders happy.