Faster Payments - When is the money available?

Geoff_W

I transfer money from my savings accounts to my Natwest current account using the Faster Payments system. The money usually appears in the current account within minutes. However, this money is marked as 'provisional' and is not seen as 'available' until the next day.

My question is this. Once the money appears in my current account, can I use it immediately? For example, can I withdraw money from an ATM, or pay for something with my Debit Card, or even use an online transaction to move the money to another account? The issue is whether or not Natwest will charge me for being overdrawn if I use the money too quickly. This lack of knowledge on my part means I always wait until the next working day to carry out any further action on the money.

You views would be appreciated.

Geoff

jonesMUFCforever

You can use it as soon as the receiving bank updates its account balance (as long as it is cleared funds).

agrinnall

I believe that funds sent by FPS are cleared when accepted by the receiving Financial Institution. There is no FPS reversal mechanism once receipt has been confirmed therefore the funds can be accessed as soon as they show on your account. There is still an overnight process to be gone through but I am not aware of anything in that process that could override what has already happened, it should always add the value of the received funds to the next day's available balance (obviously also taking into account at the same time any other debits and credits on the account that day).

I can see no reason why you should not be able to do what you like with the money once it is showing as arrived - I have certainly transferred money from account A to account B and then made a payment to a third party within a very short time (a few minutes) with no problems.