I Am Fuming!!!!!!

moanymoany

Our endowment was paid yesterday and we arranged for the money to be paid into directly into a savings account at the branch where our mortgage is.

Today we intended to go in and pay it off the mortgage, this means our mortgage is paid and we are very excited.

Checking this morning we find the money in in clearing and will not be in our savings account until next week.

DH is away next week, we wanted so much to go together to make this final payment and now we will have to wait until he gets back to do that.

Why does an electronic transfer take 5 days? Oh yes, someone is getting interest on OUR money.

It makes me so mad.:mad:

dunstonh

Why does an electronic transfer take 5 days? Oh yes, someone is getting interest on OUR money.

It doesnt take 5 days. It takes 3. If it leaves their bank on Monday, it gets to yours on Wednesday. Building socities often add a few days due to their central clearing.

The clearing cycle benefits some and not others. For example, if you write a cheque on your current account and put it into your savings account at another bank, you earn interest on the current account whilst the cheque goes through clearing and you earn interest on the savings account which is credited to the day you pay it in.

It makes me so mad.:mad:

Seriously???

I wouldnt want to see what you are like when something important goes wrong.

moanymoany

Seriously???

I wouldnt want to see what you are like when something important goes wrong.[/quote]


After all these years I think making the final payment is serious. An electronic transfer could be done in a very little time. I could have had a cheque but chose this method instead.

These days, relatively few people write cheques and when paying by switch the money is transferred straight away.

It was the insurance company who told us that it would be between 3 and five days.

KTF

As pointed out above, it takes 3 days to transfer the money via bacs. Assuming it was put into the system today then it will be Monday or Tuesday of next week when it arrives in the account due to the weekend getting in the way.

If you had wanted it sooner you could have asked for a CHAPS transfer but that comes with a fee.

Even if you had got a cheque that would have taken a few days to clear so the end result would probably be the same anyway...

Fairdo_2

Sorry about your personal situation and that this important event is being tainted for you because of timing. However, I must admit is refreshing to hear someone is not happy because of timescales rather than the fact that there simply isn't enough money in the endowment to pay off the mortgage.

I hope that you do end up enjoying paying off your mortgage. It should be very liberating.

dunstonh

These days, relatively few people write cheques and when paying by switch the money is transferred straight away.

debit cards take a few days to work through the system.

I could have had a cheque but chose this method instead.

cheque would have been longer. Insurance companies usually take a day longer to release funds by cheque and then you have postal delay followed by clearing cycle when you get it.

It was the insurance company who told us that it would be between 3 and five days.

Thats because it varies with your bank. The big 4 are 3 days but the smaller banks/building societies are often longer. Some go as long as 7 days.

The insurance company has no control over the clearing cycle delay that your bank imposes. Your bank gets it on the third day. Any delay after that is with your bank.

pollyanna24

Must agree with above poster and say there are more important things to worry about. There's enough money there, and you will be mortgage free within the month, what's the prob?

Scott

They could transfer it by CHAPS, but it's £15 to £30. Worth waiting, usually.

regularsaver1

Yeah if not done by CHAPS, then its the normal BACS system based on working days

If you had a cheque with the postal strike tomorrow, it would have taken longer to get to you and then would have still had to clear to repay mortgage

MagsyB

But I agree with moanymoany
Why does it take so long now?
I can pay for something by debit card and it is out of my account the same day but the person I pay it to says it takes 7 days for them to receive it!
No way - it is no-longer the case when I worked in the bank 20+ years ago (only for 6 weeks as I hated it!) when everything was processed by hand - it is now computerised and should no-longer be in favour of the banks but more balanced
Just my view!
MagsyB

Scott

There is actually going to be a major overhaul of the banking system, I believe in the next year or so, to reduce the times taken to transfer funds electronically (to mostly same day transactions).