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The Faster Payments Cut Off Times List
Comments
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Just a thought, but does banks and building societies having different cut off times mean that interest could end up being paid by two institutions on the same amount of money?
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It does, but banks take a very dim view of people actively doing this and have been known to terminate relationships because of it.
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…and rightly so.
Seems odd that there isn’t an industry standard time though. Would make things simpler.
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For Faster Payments, it is 24x7 and if the payment is not stopped for any sort of check, a bank to bank SIP is passed immediately. This is certainly true for Faster Payments Participant to Faster Payment Participant anyway (big Bank to big Bank). Many savings institutions have their own systems and rely of their own relationship with whoever does their banking regarding money movements. Procedures and processing will vary between institutions as the money that has already moved has to be processed within their own systems from the suspense Bank account the customer has paid it to. There can’t really be an industry standard for this as these legacy systems and procedures have evolved over years and unless everyone uses the same IT it’s never going to happen.
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I used to dabble in it myself briefly, more for the novelty of gaining free money than the extra pittance it yielded. I was fortunate, though only through heeding warnings on this site. Of course, this doesn't stop me from nowadays delaying payments that I would have made anyway until after 8:20pm from Santander/Cahoot.
Cahoot, at least, appears to have an 8.15 cut-off. Try a deposit at 20:12 and you should see it credited the same day, meaning that a withdrawal at that time would discredit the 8pm advised. So, a mistimed £3999 withdrawal from the Edge Saver would cost you....well not a lot, but for some of us on here it's over13 shillings!
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With Cahoot, I'm only going off their general Ts&Cs, which states an 8pm date cut off for earning interest, I can't see any evidence of an 8:15pm cut off in their Ts&Cs:
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That's why I'm inviting people to test it.
8.15 is '…after 8pm'.
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But then so is a millisecond past 8pm by that logic.
Regardless though, the date shown and date interest is calculated from can be two different things, it's one of the reasons why this list was such a difficult one to compile in the first place. I'd rather err on the side of caution though and stick 8pm as the cut off time, as it's the only figure I can find in their Ts&Cs, there's no reference to 8:15pm anywhere.
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If I withdraw from Cahoot before 20:15, it usually debits on the same day. If I do it a bit later, it usually debits the next day but the money is sent immediately. I take a more relaxed approach and do my withdrawals around 22:00, thereby allowing for some potential overruns.
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Precisely, which is why 'erring on the side of caution' is detrimental to withdrawers. However, I'm aware the thread is essentially about deposits, so withdrawers shouldn't rely on the times for accuracy.
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