Bank float time - frustration

[whatnot]

I needed to send money asap from my acct to a friend in need (out of state). I recently opened an Ally account, and went thru the process on line via the "pop money" feature. Well they will withdraw the money today but it will not be received by friend until Monday! 3 business days. I have the account # & routing # for my friend. In the old paper money days I understand the need for the money to clear - but this does not make sense to me.

So I went to my credit union and was able to send $100 only for next day, and then the 3 business day kicks in for any amount after that.

So now I will have to get cash from my local CU and go to a local Bank of America to deposit funds. It just seems like in the day and age, this would not be necessary. Am I missing something?

Frustrated

 

[photoguy]

You could use a wire transfer instead of ACH. Wire transfers should be available instantly but cost $$$ to send.

I think paypal is also immediate if you have the funds in your paypal account (instead of in an attached bank).

 

[aja8888]

Believe it or not, Walmart customer service centers will let you send up to $2000 to another person per trnsaction and it only takes a few minutes to initiate. We did that on a car purchase a few moths ago. We transferred $1250 to the recipient in another city in a matter of minutes and he got cash on his end.

 

[jazz4cash]

I think I could do this via PayPal or BofA. I think recipient needs PayPal account (easy) and you just need their email. BofA can send money via acct numbers or just a cell phone number. Not sure what dollar limitations each has.


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[Winemaker]

Please let me know how you get $$ from BofA quickly.

To withdraw from my ML 401k, I must wait for the "3 business days to settle", which I will say I understand, then wait for sometimes days to get deposited to a BofA checking account. I had to open the account so that it wouldn't take up to 7 days to get sent by snail mail to my home or local bank. BofA does not have a brick and mortar branch anywhere in my area, but an ATM 30 minutes in the next state over. I can access my funds electronically if I transfer to my local bank but its another day.

I ended up opening a ML Edge account, where my funds are received after the third business day, then transferred on the fifth.

 

[Just_Steve]

The banks are reverse kitting with our money.

 

[RunningBum]

Pretty sure BofA has limits on transfers too, if you are looking at them you should check it out before going too far down that line. But maybe it was another bank I was thinking of.

 

[euro]

Overnight express a cashier's check? That said, it would be truly sad if that was the best/fastest way to transfer money in 2016.....

 

[Dash man]

Ally charges $20 to wire money, as does USAA.


Enjoying life!

 

[folivier]

Even worse when we sold our house and received a check for the sizable equity from the closing attorney we had to wait over 10 days for the check to clear into our account. This was an attorney recommended by the bank. Don't they trust him to have the funds in his escrow account?

 

[UpAnchor]

Believe it or not, Walmart customer service centers will let you send up to $2000 to another person per trnsaction and it only takes a few minutes to initiate. We did that on a car purchase a few moths ago. We transferred $1250 to the recipient in another city in a matter of minutes and he got cash on his end.

We did that a number of years ago and, while it was fast and hiccup-free, I believe there was a fee on the order of $20 or so.

Another angle through Walmart is using a Bluebird card. I believe the recipient also has to have a bluebird card but I understand it's supposed to be drop-dead simple otherwise. We carry Bluebird but haven't utilized that feature. A big downside could be the recipient deciding to start using the "request money from someone" feature.

 

[swakyaby]

Even worse when we sold our house and received a check for the sizable equity from the closing attorney we had to wait over 10 days for the check to clear into our account. This was an attorney recommended by the bank. Don't they trust him to have the funds in his escrow account?

It doesn't seem to matter who it is who writes the check. I had a $15,000 check from Vanguard deposited into my checking account, and Wells Fargo required me to wait 5 business days before I could withdraw the funds.

 

[MRG]

In this day and age. I recall helping to develop code to ensure a Megacorp held on to the float as long as possible.

 

[nwsteve]

I have not had a "meaningful" deposit in awhile, but in the past I found it helpful to make a strong but polite request with my receiving bank to make funds available immediately, especially when there were known players like a Vanguard or any major corp. In a few cases, I had to have a "chat" with the branch mgr but usually got what I needed. We did have a relationship with the bank so were known parties.
Lots of new regs and banks aren't making the bucks off of us like they are use to so maybe this is one place they can squeeze us now.
Nwsteve

 

[Dash man]

I bank with USAA and they always make funds available immediately for us. We do however have a long history with them and substantial funds, which probably make a difference.


Enjoying life!

 

[Alan]

Some years ago the UK regulations were changed requiring fund transfers between banks to be executed within 24 hours. Whether it is a bill I am paying or money I'm sending to a friend or relative the funds are in their bank account within an hour or 2 of me clicking "submit".

I have done quite a few fund transfers recently from my US bank to my UK bank, and using TransferWise I have found that if the transfer is $2,000 or less then the funds are withdrawn via ACH same day or next as I book the trade, and appear in my UK bank account next business day. This is much faster than when I or my daughter use Chase Quick Pay to send each other money.

 

[COcheesehead]

Paypal is the way to go.

 

[Ronnieboy]

I use a credit union for majority of financial transactions, when I have a large check to deposit they usually release right away. They do ask, "Were you expecting this check?" I guess to make sure we hadn't fallen for the Nigerian Prince scam.....

 

[whatnot]

Thanks for the replies. Ended up going to my bank and withdrew $500, went to BoA. They asked for my Id, and I asked why - her reply was to prevent money laundering! Really , $500 ? Seems so silly


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[whatnot]

Went to BoA to make deposit in friends acct. (to clarify prior post)


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[meierlde]

At Wells Fargo for large checks for me part is same day and the rest the next day (10k range for checks). I suspect it depends on your balance with the bank however. The larger your average balance the shorter the hold.

 

[Peter]

At Wells Fargo for large checks for me part is same day and the rest the next day (10k range for checks). I suspect it depends on your balance with the bank however. The larger your average balance the shorter the hold.

Yes.

I deposited a $5k personal check last Monday at our local Wells Fargo branch. Receipt says $400 available immediately, the balance the following day. Although, when I checked the account Monday evening, the whole $5k was showing, with no indication that it wasn't available.

Ironically, an ACH transfer takes up to 3 days. Crazy.

 

[jazz4cash]

At Wells Fargo for large checks for me part is same day and the rest the next day (10k range for checks). I suspect it depends on your balance with the bank however. The larger your average balance the shorter the hold.

I can't remember the exact details but at BofA the amount immediately available means it can be withdrawn(cash), but it is all available immediately for electronic debit. I presume that means they can reverse these transactions if there is a problem with the credit.


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[Taxman59]

about 20 years ago, I deposited a $40,000 check in a national bank, drawn on a local bank WITH ITS MAIN OFFICE NEXT DOOR!!! I was told that I could access $100 today, and the remainder when it cleared, but no sooner than 10 days. I explained that I had to write tax checks on that $$, they said I should have had more $$ in my account to pay the taxes so I wouldn't have to wait for these funds! I asked to speak to the manager, and he said it takes 10 days (this time he added that's business days) for the check to get to the main branch of the issuing bank. I asked him to look out his window and tell me it takes 2 weeks to get next door. They just wanted $40,000 free money for 2 weeks at the then 3% rate.

I ended up asking for the check back so I could cash it at the issuing bank where I would be transferring all my accounts. Unfortunately, the teller had already processed the check so it would be some time (hours?) before they could undo the paperwork to give me the check. I suggested that the local paper might be interested in the story of how it takes the big bank a week to walk a check across the street and the local banks will actually do that for a customer. The manager said he would make an exception and allow me access to 50% of the funds in 24 hours. It took a few years, but DW and I moved from that bank to a small local one (which has subsequently been absorbed into another MegaBank, so I will make a move again when my mortgage is paid off in 3 years (2.875% interest, so no wish to pay off too early!)).

 

[JOHNNIE36]

This has nothing to do with float, but I ran into a new rule the other day at BOA, my home bank. Now you have to provide photo ID to make a cash deposit. I did not even want to know why. This was a few hundred dollars, not $10k or other large amount. Probably money laundering regulation.