Where does the money go? (Financial institution to financial institution transfers.)

SpokeyDokey

64 and a little bit.
Moderator
So on one hand we had a NS&I bond (2.55% - seems like at lot nowadays!) finish 3 days ago with payment direct to one of our current a/c's.

As of right now it still hasn't hit the a/c account despite it disappearing off of the NS&I personal dashboard.

Nor does our current a/c indicate that anything is on its way.

On the other hand, in November, we had an accumulation of money built up from our usual monthly savings that we shunted from our current a/c to NS&I Premium Bonds where the monies transferred, as near as dammit, straight away.

So, where is our money? (Or our ones and zeros to be more accurate I guess.)
 

BoldonLad

Veteran
Location
South Tyneside
So on one hand we had a NS&I bond (2.55% - seems like at lot nowadays!) finish 3 days ago with payment direct to one of our current a/c's.

As of right now it still hasn't hit the a/c account despite it disappearing off of the NS&I personal dashboard.

Nor does our current a/c indicate that anything is on its way.

On the other hand, in November, we had an accumulation of money built up from our usual monthly savings that we shunted from our current a/c to NS&I Premium Bonds where the monies transferred, as near as dammit, straight away.

So, where is our money? (Or our ones and zeros to be more accurate I guess.)
Cannot really answer your question, but, it is a holiday weekend?

I would say, the holiday bit makes no sense to me, since, I assume the banks computers do not get Bank Holidays?, but, I note, simple transfers (direct debits, standing orders for example) appear to be delayed by the occurrence of weekends and bank holidays. Perhaps, the Computers have better work terms and conditions than the staff?

A more worrying possibility, hope you have not been in Email correspondence with any Nigerian Generals recently, reference helping them with large money transfers ;)
 
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Edwardoka

Prolix Maximus
The transaction will be held in escrow between the two banks until such times as both banks agree that the transfer is legitimate. Verification/fraud prevention systems etc. If the second bank rejected the transfer it would be released back into your first account.

I honestly don't know why such systems, which are now almost entirely automated, still respect bank holidays before processing them. It's probably a tradition, or an old charter, or something.

Furthermore, current accounts have fewer checks and balances on outgoing transactions than savings accounts, hence why the money transferred immediately into your savings account, but has a significant delay in the other direction.

(Plus, I'm sure someone along the way is accruing interest on your money.)
 

vickster

Legendary Member
The transaction will be held in escrow between the two banks until such times as both banks agree that the transfer is legitimate. Verification/fraud prevention systems etc. If the second bank rejected the transfer it would be released back into your first account.

I honestly don't know why such systems, which are now almost entirely automated, still respect bank holidays before processing them. It's probably a tradition, or an old charter, or something.

Furthermore, current accounts have fewer checks and balances on outgoing transactions than savings accounts, hence why the money transferred immediately into your savings account, but has a significant delay in the other direction.

(Plus, I'm sure someone along the way is accruing interest on your money.)
At least someone is as savers aren’t!
 

classic33

Legendary Member
No, the computers don't get Bank Holidays off, nor do most of the backroom staff.

And whilst it may seem as computers do all the work, they don't, a human checks nearly every transaction. They've replaced the face to face contact that happened in banks. You could transfer money from one account to another, but you'd not be allowed to withdraw it from the second account for a short period (3 - 7 days), whilst it sat in a holding account owned by the bank.

@SpokeyDokey, the chances are your money ceased to exist once paid into the bank.
 

Moodyman

Guru
It's almost impossible for a bank to have people to check every transaction. They handle millions of transactions daily.

They employ sophisticated software to check payments and if it fits in with your profile / payment history, payments are released. If it doesn't, then a human gets involved.

The weekend issue is correct. Bank A's system talks to one of several interbank systems and they talk to Bank B's system. All systems are programmed to recognise weekends and bank holidays.

They could be programmed to unrecognise these and send payments 7 days, but these are old systems and the development costs for all system updates will be high. So, they stick to the status quo.
 

Phaeton

Grumpy Old Barstool
Location
Oop North (ish)
Short answer it's one of the worlds biggest scams, the money whilst been removed from one of your accounts & before it is delivered to your other account is held by the banks to play the stock market with & loan to other people. With today's computers there is no need for the money to be held, other than if it's suspicious. But they do it & there's nothing we can do about it, they keep themselves afloat with it.
 

Moodyman

Guru
Short answer it's one of the worlds biggest scams, the money whilst been removed from one of your accounts & before it is delivered to your other account is held by the banks to play the stock market with & loan to other people. With today's computers there is no need for the money to be held, other than if it's suspicious. But they do it & there's nothing we can do about it, they keep themselves afloat with it.
So, the banks are playing the stock market on weekends and bank holidays when it's closed?
 

classic33

Legendary Member
So, the banks are playing the stock market on weekends and bank holidays when it's closed?
The banks may be closed to the public, but they operate round the clock, including Bank Holidays.

They're only open to the public for a third of the available time, what's being done for the remaining two thirds?

Alt, five right, enter, down seven, enter, one right, enter, check account details match*. Enter to allow transfer, ESC if they don't, making a note, on paper, of the account number(s) before checking both donor and receiver accounts.

A printout of 100 pages, landscape, to be checked each day.
 
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