Over the years we have grown to trust the linking of accounts, called Move Money, more than the postal system, especially around holidays or peak mail times i.e. Tax day, or Thanksgiving!
Linking of like titled or mutually owned account is the connection of accounts for easy movement of funds. These links stay in place for future use and if at least used every couple of years will stay connected. The recent SLOA (Standard Letter of Authorization) notice we mentioned here, was the annual notice of such links.
New Speed of Movement Has Caused (Good/Funny) Confusion
Due to new enhancements in the financial transactions systems ACH (Automated Clearing House) when a request is made to deposit funds from an outside account INTO your account here with our vendor, the funds show immediately in your account with our vendor before they are even drawn from the other account… until funds are actually drawn they will be visible in both places, seeming looking like you have double value (A Happy Feeling!)
Not to worry, within a day or two the ACH system will reach out and electronically grab the funds, easily moving from one account to the other.
Worth noting, due to this speed of deposit, if the ACH reaches out to grab the funds and they are not there, the deposit will be reversed in a couple of days. Prior to the immediate deposit, the ACH would try to grab again, but this is not longer the case.
On a related note … talking of speed… several years back, we were enabled the ability to virtually deposit (via our scanner) an outside check directly into your account, making it visible in your account ….usually within 20 minutes or so!
Both of these transactions commence immediate interest draw on your funds – Cool!
Funds can reject up to five business days, so as a practice, it will be a business week before transactions are made in both cases above!
Have a Great “Understanding New Transaction Speed” Day!
John A. Kvale CFA, CFP