Electronic Funds Transfer?

[The_Twisted_Ear]

Maybe it is just me but has anyone else noticed that when you transfer funds (electronically) from one bank to another it takes more then 3 days? I have noticed that when I transfer funds from one bank the withdraw shows up instantly. Then, it takes about 3+ days to show up in the other account (different bank). Are they just using the funds (free) for a few days? I don't understand how something electronic takes 3+ days. Can anyone explain why it takes so long?

 

[ProfMoneyWise]

I keep my emergency fund and other savings types funds with INGdirect. They have received this very question enough to add it to their FAQ's. Explanation provided is as follows:

Electronic transfers between ING DIRECT and other banks are FREE and generally take 2 business days. Add an extra day for Federal holidays.

Like most banks, when we electronically transfer money with another bank, the money goes through a secure network called the Automated Clearing House (ACH) system.

We pull our transfer requests together each day and send them off to the ACH. That system then pulls together all the daily files they receive from thousands of banks and routes the transfer to the appropriate receiving bank account and then the transfer occurs.

 

[The_Twisted_Ear]

OK - I didn't realize their were other "stops" required to complete the actual transfer. Thanks a bunch for the explanation.

 

[dave1959]

I think this also has a lot to with the bank...I used to a lot of busines with a company in Italy and I could get money transfered to me in less than 24 hours. We used a bank based in Germany, I forget the name.