CHAPS vs BACS - Is it worth it? ***BETA Calculator Now Online***

Kilty_2

As was being discussed in another thread, I have completed the development of a calculator that determines whether you would be better off using CHAPS or BACS for transferring money, based on the cost of CHAPS and interest that would be gained.

The link to my calculator is http://chaps.kiltoxservices.net/ . It's in beta so I'd appreciate it if you could post here to inform me of any errors or possible improvements.

Thank you.

PS. If anyone was wondering why I started a new thread, I was asked to do so by Martin.

I'd like it if you could keep this thread on topic, for informing me of any bugs etc. For any discussion of CHAPS etc, please use the other thread in this section.

**EDIT** I'd like to add my thanks to Dagobert for providing the original algorithm that I based the calculator on. (In THIS thread). I'm going to update the page to also reflect this since it seems I've caused some ill feeling. This was never my intention so I apologise to you and anyone else who is not happy with what I've done.

**EDIT 2 ** I've now removed the advertising.

Dagobert

Here's the link to the original thread - formulae + examples: [thread=257720]CHAPS - when it's worth it[/thread].

strawberrylane

The calculator seems to be working correctly based on the few examples I have put through it.

The welcome text states that CHAPS transfers usually take place the next working day. All CHAPS transfers I have made have been guaranteed by the sending bank to reach the receiving bank by close of business on the same working day provided the instruction has been received at the sending bank by its specified cut-off time, otherwise they would refund the CHAPS fee.

The user needs to be aware that the 'Days Lost' field in the calculator must include non-working days as well as working days (i.e. it must include weekends and bank holidays). Hence, there would be a potentially bigger gain to be made by using CHAPS instead of BACS if the payment instruction was issued on a Thursday or Friday (for example) compared to a Monday as the BACS payment would be 'delayed' over the weekend.

Kilty_2

:T :T Expect an update sometime soon.

Dan29

Perhaps a bit more credit should be given to Dagobert for doing the calculations used for this webpage, and posting them in the original thread which gave Kilty the idea for creating the page?

Also, am I the only person who thinks it's a bit incongruous seeing a site featured in the weekly e-mail when it contains adverts such as these?:

Dagobert

First, Kilty had the cheek to hijack somebody else's idea, which was provided for free, placed the calculation on a web page, which is now generating advertising income and, conveniently, directing traffic to his web site. No link to the original post provided.

I find it rather odd that Martin endorses this behaviour, in fact asks for a new thread to be created without even acknowledging the original post - obviously because the calculator was to be featured in the weekly money mail.

mary

I think copyrighting one's own ideas springs to mind in this scenario, if only with hindsight!

It ain't fair!

whambamboo

Dagobert wrote:

First, Kilty had the cheek to hijack somebody else's idea, which was provided for free, placed the calculation on a web page, which is now generating advertising income and, conveniently, directing traffic to his web site. No link to the original post provided.

I find it rather odd that Martin endorses this behaviour, in fact asks for a new thread to be created without even acknowledging the original post - obviously because the calculator was to be featured in the weekly money mail.

Can't see the problem myself. If you weren't going to make it more accessible for people not familiar with algebra, and weren't going to make an money out of it, why begrudge someone sticking it online for free?

DocProc

Well Kilty, I like your calculator and I have bookmarked it for future use. I also admire how you have commercialised the web page on which the calculator sits. Nobody else was doing this and so good luck to you with the project. It has also been an eye-opener to see someone like you take someone else's ideas and turn them into a copyrighted money-making business opportunity.

However, I do have to agree with Dagobert that you should have given credit to those people like him, whose work, suggestions and comments you have taken.

There is still time to edit your intial post on this thread and I strongly urge you to do so, giving due credit to the earlier threads and those whose calculations you have used.

Indeed, as well as the basic calculation maths, on the earlier threads there are some useful comments concerning inter-bank transfer time charts and such. All these things are just as important to consider as is the simple brief and almost insular result, obtained from your calculator.

Perhaps you also ought to have a good read at Dale Carnegie's famous book, "How to win friends and influence people".

derrick

Correct me if I am wrong but using a hypothetical example.
50k @ 5% = £6.85 per day, 2 days lost interest via BACS = £13.70 (all figures rounded)
However pay a £20 CHAPS fee,to move to a 5.5% Acc, no lost interest, money earning interest same day, 50k @ 5.5% = £7.73 per day, X 2 = £15.06, therefore it has only cost £4.94 after paying a CHAPS fee, saving £8.76 as against doing a BACS and losing 2 days interest,( and that could be 3 days, meanig more savings)

Answers in English please

strawberrylane

...forget about the account that the money is coming from.

If you send your 50K by BACS, the "cost" in your example is 2 days loss of interest in the receiving account, which is £15.07

If you send 50K via CHAPS, the cost is the CHAPS fee of £20 but you would gain the 2 days interest of £15.07 in the receiving account.

So, in your example you would be better off sending the 50K via CHAPS because it would cost you £4.93 less.