Faster payment posted vs transaction date for interest purposes

iwant2asave

Hi,

I have a savings account.

On the statement it shows deposits into the account. 

For each deposit it shows 1) Date 2) Description.

Some deposits are like this :
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Date : 20/12/2024 Description : Faster payment
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Some deposits are like this :
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Date : 23/12/2024 Description : Faster Payment Posted: 22/12/2024
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For the first one I guess its pretty clear that it would earn interest from the date mentioned as there is only one date.  For the second one, does anyone know which date it might earn interest from either the "Date" or the "faster payment posted date"?

InvesterJones

What time was the payment and what do the terms and conditions say about payment timings? It might be you missed a cut-off so the interest only applies from the date.

masonic

It depends on the bank. Some pay interest from the date received even when the statement date is later, but some do not.

AmityNeon

If it's Gatehouse Bank, interest is earned from the first date, which is usually referred to as the post date of the transaction, i.e. when the transaction is 'posted' to account records (which may be different from the actual date of the transaction).

Traditional banking systems typically only post transactions on working days. Some record and provide the actual transaction date within the transaction details (e.g. Nationwide, Lloyds, NatWest) and others do not (e.g. Barclays, Virgin Money). The effective/value date of a transaction (for interest purposes) can be either the post date (Gatehouse, NatWest, Virgin Money) or the actual transaction date (Nationwide, Lloyds, and I think Barclays). There are also edge cases where funds can be received on non-working days and the posted dates on statements reflect this, but the effective/value date is still the next working day (e.g. Skipton BS).

Modern banking platforms (e.g. Chase, Kroo, Monzo, Starling) have just the one date, where actual = effective/value = posted.

iwant2asave

Thanks everyone, its actually a vanquis notice account.  The terms and conditions :

https://www.vanquissavings.co.uk/pdf/general-terms.pdf

It says "If you pay into your account using an electronic transfer, the money will start earning interest on the day we receive it."

Which I'm assuming will be the "posting date" which on the statment is sometimes coming the day before the transaction date.

AmityNeon

iwant2asave said:

Thanks everyone, its actually a vanquis notice account. The terms and conditions:
https://www.vanquissavings.co.uk/pdf/general-terms.pdf

It says "If you pay into your account using an electronic transfer, the money will start earning interest on the day we receive it."

Which I'm assuming will be the "posting date" which on the statement is sometimes coming the day before the transaction date.

Those terms aren't sufficiently detailed to accurately describe/reflect their system implementation; "the day we receive it" is ambiguous. They obviously only post transactions on working days, and withdrawals are limited to working days and take one working day before reaching your nominated account. It's entirely possible that their system records when the faster payment was sent (Sunday, 22 Dec 2024) but funds aren't 'received' until the transaction is posted to your account.