Who 'owns' my money when its mid transfer?

yvie_2

Hi there

I have just incurred a bank charge of £30 for being overdrawn.

I transferred money from one bank to another via internet banking, which was deducted straight away but didnt appear into the other bank account until 5 days later.

I asked both banks, 'who gets the interest on my money in that time. Where is my money in that 5 days.'

One bank said, its gone from here, end of story.

The receiving bank (barclays) said it is in transit and no one 'owns' it.

I say, hang on a wee moment bank people......It may have only been £50 but interest on that in 5 days plus all the other thousands of ££££ 'in transit' belongs to the owners of the money and not just 'lost' for 5 days surely?

ANyone got any ideas about this please?

Barclays have agreed to refund the £30 'this time' but Id still like to know whether there is interest to be gained in that 5 days and who gets it?

On top of that they called the transfer a 'counter credit' on my statement when it wasnt. Barclays admitted that was an error.

I wish I had travelled to the bank and physically withdrawn it and physically paid it into the bank myself, but surely thats what internet banking is for isnt it?

Please someone who knows tell me as there is either millions lost in interest in this time, or the banks are gaining hidden interest

Thanks

Yvie

DeepSporran

Effectively the banks keep the interest to themselves for the few days it takes for the money to be transferred.

However things should get better in May when same-day transfers become possible - although this new development has already been delayed by many months, so don't hold your breath.

yvie_2

Ah thought so, so she wasnt being entirely truthful then. I didnt think all that interest would be ignored by the banks!

Many thanks for replying and I look forward to may-ish then.

Amazing isnt it how someone can reply to words I typed a few minutes ago and yet its not possible for numbers to be treated the same way. LOL

THanks again

Redhouse

I got stung in a similar way with the 1st Feb being on a Friday and transferring money to our joint account which didn't arrive until Tues 5th Feb.

I mentioned it in another post and basically the impression I got was that we, the customer, are grabbed yet again by the short and curlies by the banks.

In this modern age of instant everything I think it is ridiculous an electronic transfer of money can go missing in the ether for 5 days!!!

As I also said, whilst the interest on 50 quid might not be too much, if it was 50 million quid it would be a different kettle of fish, and I for one see no difference. The banks are thieves IMHO and I consider this to be fraud...they'd be quick enough to nail me if I defrauded them wouldn't they!?!

jonesMUFCforever

I have to ask both of the complainents on here why on earth do you need more than one bank account?

I could say a lot more but what's the point; its always the thieving banks fault !!

YorkshireBoy

yvie wrote: »

...I look forward to may-ish then.]

Even though you may have to pay (a few pence, and probably more than the interest you lost on your £50...although less than a £30 charge) for the service?

gt94sss2

DeepSporran wrote: »

Effectively the banks keep the interest to themselves for the few days it takes for the money to be transferred

I think it depends on the bank - I found in HSBC's T&C that they actually continue to pay interest on BACS transfers for two days after the money has been debited from your account..

Regards
Sunil

dunstonh

It goes from branch to that banks clearing house to the bank of england onto receiving banks clearing house and then the receiving branch. If its a building society or ex building society, then an extra layer may be involved with some of them.

The "electronic" clearing cycle was bolted on to the near ancient paper clearing cycle and many of the delays are caused due to law as well as systems that date back 50 years or so. As mentioned this is due to change but requires all banks to have their systems in place and ready to go at the same time.

yvie_2

Many thanks for your replies.

Dunstonh thanks for the detail. I had no idea it travelled about so much before arriving in my account. I guess just its human nature to just see things in a simple fashion when we dont know how it really works.

Yorkshireboy, I guess theyll be trying to recoup their losses after paying back all the charges!

ejones 999. THere are plenty of reasons to have more than one bank account. If you have ever been through divorce and have financial links with an ex partner for various reasons and situations you will understand. I hope you don't, its not a bundle of fun. Thats just one reason, but there are many many more reasons. Joint accounts seperate from personal ones, business accounts seperate from domestic ones.


Sunill thanks I will look into that just to see.

brookerbabyisababy

i can't find information about same day transfers in may??? is there are link?

cifpower

brookerbabyisababy wrote: »

i can't find information about same day transfers in may??? is there are link?

http://business.timesonline.co.uk/tol/business/money/consumer_affairs/article688616.ece

http://www.apacs.org.uk/payments_industry/new_technology1.html

http://en.wikipedia.org/wiki/Faster_Payments_Service