Slow vs Fast easy access savings

pshannon

I have noticed considerable differences between savings accounts and the speed at which they perform transactions.  Slow ones can take days to transfer payments whereas others are instantaneous.  I never see this mentioned when comparing easy access accounts, but it can be significant, e.g. to prevent overdraft charges.

Fast ones include Cahoot and United Trust bank.  Slow includes Snoop, Kent Reliance and Shawbrook, which can take several working days.  For example, a withdrawal form Shawbrook actioned on Friday morning can take till Monday afternoon to appear in your linked current account.

Reasons are usually transfers working through intermediary banks, and 'batching' of transfers.  Personally, I can't see why most, if not all, can't do instantaneous transfers if they really wanted to, since all seem to use Faster Payment System, which is practically instant.

Isthisforreal99

Friday morning to Monday afternoon is not 'several working days' though is it - it's basically the next working day.

flaneurs_lobster

There are technical reasons why some institutions do Faster Payments quicker than others, the fundamental one is that only certain institutions choose to be direct members of the FP service - here's a list from Pay.uk who run the service 

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

There is, of course, a cost to this direct connection, many (usually smaller) institutions choose to go via their clearing bank and this link may well not be real-time.

Malchester

pshannon said:

Fast ones include Cahoot and United Trust bank.  Slow includes Snoop, Kent Reliance and Shawbrook, which can take several working days.  For example, a withdrawal form Shawbrook actioned on Friday morning can take till Monday afternoon to appear in your linked current account

Kent Reliance which you say are slow are, for easy access accounts one of the fastest. No sooner have you clicked send than you get a txt and the funds are there. There are genuine reasons why some are slower and you can always look on terms and conditions to find withdrawal speed

Albermarle

flaneurs_lobster said:

There are technical reasons why some institutions do Faster Payments quicker than others, the fundamental one is that only certain institutions choose to be direct members of the FP service - here's a list from Pay.uk who run the service 

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

There is, of course, a cost to this direct connection, many (usually smaller) institutions choose to go via their clearing bank and this link may well not be real-time.

Not sure about the technicalities, but some ( Ford Money for one) used to be next working day, but now it is two hours. So not instant, but quicker. 

For instant payments, I keep an easy access account with my main bank and then I can transfer money on the app instantaneously. The interest rate is not the bes. but as I only usually have two or three thousand in there, it is not an issue.

born_again

People forget that faster payment time frame is by the end of the next working day. 
Just people have got used instantaneous or under 2 hours as the norm. 

friolento

pshannon said:

I have noticed considerable differences between savings accounts and the speed at which they perform transactions.  Slow ones can take days to transfer payments whereas others are instantaneous.  I never see this mentioned when comparing easy access accounts, but it can be significant, e.g. to prevent overdraft charges.

You are right, there are all sorts of differences, and it’s important to choose accounts that meet your requirements.

If you follow the top easy access accounts thread at the top of this board, you will see a regular post listing the best true instant easy access accounts.

There is also regular mention of any cut-off times for withdrawals in that thread, as well as in the Regular Savers thread.

eskbanker

born_again said:

People forget that faster payment time frame is by the end of the next working day. 
Just people have got used instantaneous or under 2 hours as the norm. 

I'm not sure it's literally forgetting anything as such, but yes, I think the enhanced service level offered by direct participants is often seen as the norm, so those continuing to operate to the lesser (but PSR-compliant) level are (perhaps understandably) seen as deficient.

There have certainly been a number of similar previous threads about the distinction between 'fast' and 'slow' Faster Payments and who offers each.

exel1966

pshannon said:

I have noticed considerable differences between savings accounts and the speed at which they perform transactions.  Slow ones can take days to transfer payments whereas others are instantaneous.  I never see this mentioned when comparing easy access accounts, but it can be significant, e.g. to prevent overdraft charges.

Fast ones include Cahoot and United Trust bank.  Slow includes Snoop, Kent Reliance and Shawbrook, which can take several working days.  For example, a withdrawal form Shawbrook actioned on Friday morning can take till Monday afternoon to appear in your linked current account.

Reasons are usually transfers working through intermediary banks, and 'batching' of transfers.  Personally, I can't see why most, if not all, can't do instantaneous transfers if they really wanted to, since all seem to use Faster Payment System, which is practically instant.

Try reading responses to the last time you posted this.

SH88SH88

Malchester said:

pshannon said:

Fast ones include Cahoot and United Trust bank.  Slow includes Snoop, Kent Reliance and Shawbrook, which can take several working days.  For example, a withdrawal form Shawbrook actioned on Friday morning can take till Monday afternoon to appear in your linked current account

Kent Reliance which you say are slow are, for easy access accounts one of the fastest. No sooner have you clicked send than you get a txt and the funds are there. There are genuine reasons why some are slower and you can always look on terms and conditions to find withdrawal speed

That may be true if an account is on the 'new' KR system , but on the old system they are still slug-like .

Chaykin

Trading 212 says that they process withdrawals within up to 3 business days - but whenever I had to withdraw from their flexible Cash ISA they were always near-enough instantaneous.