Sunday, March 8, 2020

SOMETIMES THE BANKS SHOOT THEMSELVES IN THE FOOT

I understand completely that banks need to make a profit ... they're a business just like any other.

And I understand completely why banks should impose a clearance time on cheques deposited so as to ensure they are backed by the requisite funds.

But I don't understand why there is a wait time of up to 72 hours when you transfer money (cash) between accounts held in different banks yet when you use the bill pay facility the  recipient is able to access the funds transferred virtually immediately.

Anyone care to enlighten me apart from pointing out the obvious that banks sometimes shoot themselves in the foot by pissing people off.

15 comments:

Noel said...

https://www.asb.co.nz/help/processing-times-electronic-payments-transfers.html

The Veteran said...

Hi Noel ... not relevant in respect of bank to bank transfers.

Noel said...

Three Day Good Funds Model
The receiving banks often take 2-4 days for funds to be released to customers because they are following what they call the “”three-day good funds model”, which basically means they'll hold the funds for three days to make sure it's not a fraudulent transaction.

The Veteran said...

Hmmmmmmmm ... don't understand ... we're talking about a bank to bank transfer.

Noel said...

Depends what platform the bank is using.
4 major Australian banks introduced NPP and Osoko because of customer complaints about the TDGFM.

Noel said...

Bank-to-bank transfers allow consumers to move money electronically. Specifically, they allow someone to transfer money from an account with one bank to an account with another institution.


We on the same page?

Rusty Arrow said...

Veteran, it would help if we knew which banks you are talking about. As per the link from Noel, if you are transferring between ANZ, Westpac, ASB, or BNZ, there should be almost no delay.

If you want more ammo to shoot at banks, a good place to start would be Adele Ferguson's "Banking Bad".

https://www.goodreads.com/book/show/50078757-banking-bad


ROFL said...

Be careful Veteran there have been suggestion some airlines are not deep cycle cleaning.

The Veteran said...

Noel/RA ... talking about ANZ to Rabobank.

Rusty Arrow said...

There is the problem. Rabobank is Dutch and not a part of the Bank's clearance system.

The Veteran said...

RA ... thanks for that. Understood (I think).

Noel said...

business days for the funds to clear depending on whether you direct credited the funds to your account or used our direct debit facility. During this period you earn interest at our RaboSaver rate and you are able to create a pending Term Deposit but are unable to move the funds from your Rabobank Online Savings Account/Term Deposit to your nominated bank account. This is due to the sending bank reserving the right to dishonour the funds during this period. To check when the funds have cleared please log into Rabobank Online Savings and from the internet banking account page look at the available and total balances.

Anonymous said...

Surely Tom has a view on this as he is the font of all knowledge...come in spinner.

"Seppo Renfors" said...

Tom's still trying to figure out a way to blame Obama.

The Veteran said...

Noel ... if it were all o'seas banks I could understand (with Rabobank not being a NZL bank) but I have another o'seas bank that I deal with on a regular basis ... Citybank Europe Plc. In fact I have just picked up on my on-line banking ap that they remitted funds to me at 11.37 this morning. Those funds were available to be immediately ... no delay.

Anon and SR ... your obsession with TH might be considered unhealthy.