Money Transfers- Bank and Interbank

gdavel

What can one do about the rip off banks keeping our cleared funds for 3 or more days when funds are transfered from one account to another. In this day of computing and online transfers it can't be right and should not be allowed. Does anyone know if this is being looked in to or other than withdrawing cash, the quickest way to transfer MY money without the banks getting their greedy hands on it for a few days. They would not give me their money free for a few days!

raa_thistle

If the amounts are large enough for it to matter interest wise, you can have a CHAPS transfer which if done before 2pm (i think) will be cleared funds by end of business that day. This will cost you though, which is why its only worth it for large value or urgent transfers.

Are you moving large sums around, or do you just object to the clearing system in general? I agree its a bit naff, but you could always go in, get the cash out and then pay it in yourself. In reality, if your not moving hundreds of thousands of pounds around then it wont really matter for 3 days.

gdavel

I do transfer large amount but it is just a general feeling of being ripped off. Can anyone explain the right of the bank to make money out of an online transfer of funds. I under stand they have cost relating to the transfer and I wouldn't mind a small fee but to keep the funds for 3 days is a rip off.

raa_thistle

Thats the way it has always been, and harks back to the day when transfers were done with little bits of paper, and the banks added up all the transfer and just paid each other the difference.

The numbers really are not massive (~20p on a £500 transfer which takes 3 days, assuming you have an interest rate of 5% - VERY ROUGH CALC), and you do have the option of choosing a near instant method if you want it, but this costs you. I would imagine that the small amounts that they get in interest will be only slightly more than the cost of the transfer, especially if you do it over the phone or in person at a branch.

This is one of those things that I would let slide in the interest of free banking remaining that, free.