BACS Question - Where Does The Money Go?

jamesbr66

I can remember years ago that your salary was always in you bank account just after midnight, or in some cases just before it.

But not now it seems. The norm is now around 6am.

My question is are the banks simply holding our cash and making more interest our of it?

Is it legal for them to do so?

Afterall 1 minutes past midnight is a new day!

Wonder if we could claim interest for 6hrs over the years. Okay wouldnt be much but then again if a lot of people did, I am sure it would all add up!

If anyone knows the reason for it, I would be dleighted to find out. I tried google but just cant seem to find the info.

Thanks

J

gt94sss2

The reason for what you are noticing is simply that that different banks update their balances/systems overnight at different times with direct credit/debits

The banks won't earn any interest for this 'short' period - I believe they only make money if they can lend a sum at least overnight.

Regards
Sunil

dunstonh

My question is are the banks simply holding our cash and making more interest our of it?

It doesnt matter what time the bank updates their cashpoint machines and online services. It goes in on the day in question and you earn interest form that day. Interest is daily and not by the hour.

kavomix

As stated above, it all depends on when the banks in question finish running the credit and debits for all their accounts on their overnight updates. They all start at different times

Off hand
RBS/Natwest will normally show any money due in (or out) for the next day from between 2am to 3am
HBOS (Halifax/Bank of scotland) will show it at around 6am

ppl your welcome to add your views

But i would like to argue one point. How can the bank running the money due in or out for the next day make them more money. Just by running it a few hrs later or earlier they make/lose money

why is it people always assume that everything the bank does is to squeeze money out of you. They run at night during their least busy moments, as when the system updates you can't access online or telephone banking. Also surely if they run it later not only do they stop payments going into your account, but also stop the payments that they want to take out. Thus the whole making money idea is stupid

Homework

Clydesdale goes in at around 11-11.30 pm night before. I suppost there has to be a starting point and an end point.

jamesbr66

Thanks. I was simply wondering why only a few years ago regardless of what bank you were with funds were always available midnight or before. I may very well be overly suspicious but then again as recent years and consumer groups have shown, the banks do not always play fair and often have very sound financial reasons for what we sometimes take for granted and perhaps 'small'. Just my opinion!

brookerbabyisababy

Barclays 12am same day
HSBC next day 6am