US ACH Transfers

[forcebwithu 4,580]

Just learned something new about the archaic US ACH system.

Last month I initiated an ACH transfer with Schwab to transfer money to my account there from my Chase account. The money arrived in the account almost immediately, but after five days there was still a hold on the funds. I sent a message to Schwab as to why the long hold on the funds, but they never replied. Finally got around to following up with them as to the lack of reply 17 days later and this time had a couple of quick message exchanges that resulted in the following answer. Something to keep in mind when using the ACH system.

"There is a 4 business day incoming funds hold on all ACH transfers to Schwab Bank Investor Checking accounts when initiated through the Schwab website. This is in place for your protection as the sending bank can pull the funds during this time. 

Alternatively, if the transfer is initiated through the sending bank's site, this typically doesn't have a hold since the funds are being pushed to Schwab as opposed to Schwab pulling the funds. It is our complimentary Moneylink tool that requests the funds and must verify the incoming funds. It is a longer process to pull those funds into Schwab than to directly push them from the other firm."

[sailingbill 946]

Thanks Force, just moved to the village and had an excruciating experience withdrawing my social security money from BB the lady didn’t want to do it as I needed passport update which could only be in Pattaya!!   My TGF prevailed but said we can’t do that again. I’ll have to go Patts in November.   I need to find another way. When ACH was essentially useless I switched to DD.  Now maybe DD to Schwab and wise to BB.   I have a wise card but I’m not really familiar but perhaps a solution 

[Samsonite 175]

It is called, playing the float. The institution is holding the money and using it to make very short term investments, as short as overnight. In other words they are making money with your money before they make it available to you. I've seen this most often the large commercial banks, who are really a bunch of thieves in pinstriped suits. Not too many years ago I was getting a direct deposit to an account with a major bank. The money appeared in the account on payday, which was fine. I switched to a..... are they still called, credit unions? Anyway, a "savings bank" association that works for the benefit of its members. Once the switch was made, the money was deposited and available a day early, that is, the day before "payday." Same thing with SSA, which pays on the second or third or fourth Wednesday of the month, depending on your birth date. It use to be actually available on Tuesday, but when I was using the aforementioned commercial bank it didn't hit until Wednesday. Once I switched to the credit union it hit the account on Tuesday. As of the first of this year it now hits on Monday. On an individual basis it is not a lot of money, but when you multiple it by thousands, if not millions, of customers, we are talking "real money." 🙂

Glass-Steagall needs to be reinstated in it entirety, no changes. Then there should be a criminal investigation into those who were behind its repeal.  

 

Edited October 14, 2023 by Samsonite
Typo.

[JONPAT 222]

8 hours ago, sailingbill said:

excruciating experience withdrawing my social security money from BB the lady didn’t want to do i

I have my SSA direct deposited into my BB account via their New York branch. Then move it online to K-bank. I use Kasikorn ATM to get cash and pay some bills online. I could get money out of BB ATM. 

[forcebwithu 4,580]

33 minutes ago, JONPAT said:

I have my SSA direct deposited into my BB account via their New York branch. Then move it online to K-bank. I use Kasikorn ATM to get cash and pay some bills online. I could get money out of BB ATM. 

Think you got lucky on that one. SSA deposits to a foreign bank are supposed to be to an account that requires your physical presence to withdraw or transfer the money.

Another possible explanation, you signed up for SSA benefits using a US address. I could have done the same, but for a too long to repeat reason I ended up having to go through the Manila office to start my SSA deposits. So to avoid the physical presence requirement I have my deposits go to my Chase account. I should look into changing that to my Schwab account, but IIRC it's not an easy process to change banks when living overseas.