Impact of time lag in withdrawing funds

cloud_dog

Fiftyniner2 said:

Does anyone else feel that this issue of delayed withdrawal and lost interest should be given more prominence?

No, as long as the process is clear and documented, which in my experience of numerous savings accounts it is.

If you don't like that aspect choose a provider that doesn't function that way.

eskbanker

Albermarle said:

But I now feel less sympathetic towards Charter, in the light of the Ford example

I would be guessing it is more down to a better IT/admin system than anything else.

My understanding is that both Charter and Ford use the same core IT system (the Newcastle one).

Fiftyniner2

Thanks to EthicsGradient for the calculation. Now I can decide if I’m willing to sacrifice that extra interest for the convenience of same-day withdrawals and the associated benefit of being able to manage the risk of current account overdraft charges (on the basis that I’m keeping the current account balance as close to zero as possible).

eskbanker

Fiftyniner2 said:

So the reason that Charter themselves have given me for the delay (i.e. that they are not a clearing bank) is definitely not the whole story and may even be seen as somewhat disingenuous. My reference to the ‘elite club’ of clearing banks was to do with the fact that ClearBank is the first new clearing bank in 250 years. My unstated thought was that it might be unreasonable to expect Charter to become a clearing bank, given how difficult I assume it must be to become one.

Yes, being a directly participating member of the faster payments scheme doesn't equate to being a clearing bank:

https://www.wearepay.uk/what-we-do/payment-systems/faster-payment-system/faster-payment-participation/ 

jak22

All the accounts have different access times - hopefully from all the posts here people can figure out to how to have  some funds in truly instant access, with some OK kept in slower but with better rates and even some in fixed with rates often above EA.

It might have more of a bearing when shuffling money between accounts.

If it turns out that accounts like Shawbrook that debit the account immediately but transfer the next working day do mean one day's lost interest per working day before the transfer (so Friday would be a poor choice to transfer) then it takes around 2 weeks per lost day for a 0.25% better paying account to break even - i.e. it's likely not worth moving funds out and back for less time.

Also Shawbrook funds can arrive later in the day, perhaps after the cut-off times for some accounts, so its important to have a destination that can process receipts within hours and whatever the time.

inkydolphin

Well I was just about to apply for a Charter Easy Access account and it's disappeared from the website - must be a sign!