Bank/Building Society cut of times

BASFORDLAD

Can anyone explain why it appears to be only the major banks that have a cut of pay in time (normally 3.30) where as the smaller banks (ie halifax) and building societies dont seem to have this cut of?

opinions4u

Because they choose to.

Gromitt

Apparently, it allows them to "Perform end of day banking and transaction maintenance". I can understand that they'd need to ensure that cash deposited/withdrawn from the cashiers matches the logs. Same goes for ATMs, but I'd image they'd do the later after closing the doors. I'd expect building societies to also require some kind of cut-off time so they can perform similar functions. Unless they close the doors at 5pm, but the staff don't leave until 6pm of course.

Halifax/TSB/BOS also have a 3:30pm window, but it also works as an overdraft buffer, so as long as you correct the overdraft before this time, no penalties occur.

rb10

No reason at all.

When transactions were processed manually in individual branches, it was to give time before 5pm for everything to be sorted.

Now that everything is centralised and automated, there's no reason to have a 3.30 cut-off, which is why the 'challenger' banks and building societies do not have this.

Gromitt wrote: »

Halifax/TSB/BOS also have a 3:30pm window, but it also works as an overdraft buffer, so as long as you correct the overdraft before this time, no penalties occur.

No - Halifax have a cut-off at the end of the day. If your account is back in credit by then, then there'll be no charges.

Gromitt

rb10 wrote: »

No - Halifax have a cut-off at the end of the day. If your account is back in credit by then, then there'll be no charges.

BOS and TSB clearly state the 3:30pm on their website, and since Halifax is on the same system now...

realaledrinker

The payment schemes have their own cut off time imposed on the banks so for example:

Chaps Cut off 4.00pm
Link Cut off 5.30pm

Others depend on when the bank's overnight jobs start - e.g. any payment after 9pm even if by Faster Payment might be debited "immediately" but will be redated to the following business day.

The above are the time limits imposed in the bank where I work - and in the former two's cases allow a buffer before the scheme cuts off.

realaledrinker

BASFORDLAD wrote: »

Can anyone explain why it appears to be only the major banks that have a cut of pay in time (normally 3.30) where as the smaller banks (ie halifax) and building societies dont seem to have this cut of?

Suspect Halifax is in line with lloyds TSB these days.

With regard to banks and building societies that are not clearing banks, I suspect the cut offs are at their own discretion, whereas the clearing banks accord with the cut off times imposed by the Bank of England and the various payment schemes. To do anything else would cause horrific reconciliation problems.

Above based on experience working for a clearing bank.

opinions4u

Gromitt wrote: »

BOS and TSB clearly state the 3:30pm on their website, and since Halifax is on the same system now...

The same system works differently for Halifax.

realaledrinker wrote: »

Suspect Halifax is in line with lloyds TSB these days.

It isn't.

With regard to banks and building societies that are not clearing banks, I suspect the cut offs are at their own discretion, whereas the clearing banks accord with the cut off times imposed by the Bank of England and the various payment schemes. To do anything else would cause horrific reconciliation problems.

All cut off times relate to historic branch opening times. They may benefit the bank with certain end of day procedures but the BofE do not insist on cut off times.

MoneySaverLog

If you use a Halifax/LTSB OD between 6pm and 11:59pm and pay it back before 11:59pm the same day are you charged?

Sam_Malone

opinions4u wrote: »

Because they choose to.

Simplicity, but at the same time, brilliant!

realaledrinker

opinions4u wrote: »

the BofE do not insist on cut off times.

Some examples of BoE imosed cut off times:

http://www.bankofengland.co.uk/markets/Documents/money/documentation/sfguide.pdf