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Home >> Accounts >> Online Banking/BillPay
All About Transferring Funds
Will my over-the-counter transactions show up on my online banking account? If I make a deposit to another account over the counter, will that transaction show up on my online banking account? How long until this transaction shows up? Will it be immediate? Do you know any banks who can do this?
Why is there a delay when transferring funds online? I am looking for a way to transfer funds online in the United States where I can receive/send money instantly (e.g., I bank with Citibank and I want to transfer money to my sister's account into another bank). So far, I've not found any institution that will do the transfer instantly, either in seconds or a few hours, unless both my sister and I bank in the same institution and no institution will allow transfer instantly from their bank to another bank. They will allow transfers from one bank to another, but there is a three to seven day delay before recipient account is credited.
Does anyone know the reason behind this delay? Is there a law that mandates this delay? Does anyone know a fund transfer system like faster payment in the UK or Interac for Canada, but in the US? Does anyone know a bank in the US that partners with a lot of different banks that will allow immediate fund transfers?
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 As to your first question, some banks update accounts in real time. Any transaction recorded by the bank updates its transaction records and balances at the time of the transaction. Many banks, however, process transactions on an end of day batch basis, often with memo-posting of some transactions. The only way to know how a given bank updates its files is to ask.
As to transferring funds between banks, most banks participate in FedLine, a service that moves funds between participating banks. This is often referred to as wiring funds, and it can be completed in a matter of minutes. It is up to the receiving bank to record the credit of the funds to its customer's account. The sending bank must have fully collected funds in the account to be charged for the transfer, since wire transfers are generally final once sent. They must be supplied the name and location of the recipient's bank, along with appropriate routing numbers that identify the receiving bank and the number of the account to receive the funds, along with the recipient's name and address.
Published on BankingQuestions.com 1/13/09
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