Faster bank payments to be launched
From New Year's Day, electronic payments need to reach the recipient's account by the business day after being sent at the latest
Faster internet and phone banking payments will become standard from Sunday, enabling people to pay their tax and credit card bills on a "same day" basis for the first time.
From New Year's Day, UK and eurozone electronic payments need to reach the recipient's account by the business day after being sent at the latest.
But in the UK almost all payments will exceed this requirement, being made available within two hours, according to the Payments Council, which oversees payment methods in the UK.
Banks have previously been able to agree with the customer that payments would clear three business days following the day the payment instruction was received.
The change, which forms part of the Payment Service Regulations, is expected to create an additional 15 million internet, phone and standing order payments per month. It will cover online transactions such as paying credit card bills and tax payments to HM Revenue and Customs, as well as one-off payments to friends and businesses.
Standing orders such as rent payments, charitable donations, life assurance premiums or regular savings will also be covered, and money will be debited from the customers account on the same day that they want it to arrive, rather than having to be taken out several days beforehand.
But some types of payment, such as those from Isa accounts, will not be covered by the new rules. To be covered by the new faster timescale requirement, accounts must be classified as payment accounts. All credit card accounts meet this definition and will benefit from the new rules, while some easy access savings accounts also meet the definition.
But other types of accounts with restrictive features such as notice periods for withdrawals or limits on placing and withdrawing funds, such as Isas, will remain classed as non-payment accounts.
Timescales for making payments from these accounts will remain dependent on the existing terms and conditions. As the legislation only covers electronic payments, cheques are also unaffected, the Payments Council said.
Direct debits and Bacs direct credits already meet the new legal requirements by ensuring that money is paid and received on a defined date and so will continue to be processed in the same way.
Hopefully this will help the account Holder but somehow I doubt it.
The banks are not going to give away money.
When YOUR money is transferred into or out of your account there is a period of time when it is not in your account and not in the account that it is being transferred to, during this time it is the banks money, and guess who gets interest on this money, yes you got it the banks.
Majority of people nowadays have to have a bank account to receive there salary. So think about it millions of peoples salaries paid into banks, and even if it only takes one day to actually get into their accounts that adds up to an awful lot of money that the banks can call their own for a short period of time and collect the interest.
My wife transferred money into mine the other day and it's not showing 2 days later, wasn't aware the old system of cashing in millions for a few days everyday day in day out, had changed
All Robbing Bar stewards, the lot of them, Solicitors do the same with sold property unless they've changed their spots too.
