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Entitlement to interest on monies deposited at teller on a Saturday.
November 7, 2024
3:59 pm
anitavirginia
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I am looking for comments in regards to the following:

A bank draft was deposited at a teller at a big bank at appox. 130 pm on a Saturday.
When i received my bank statement, they showed the deposit posted to the account on Tuesday, the day after thanksgiving Monday.

This is 3 days later, and accordingly I was not created with 3 days interest for this amount.

Am I entitled to interest for Saturday the day of deposit, Sunday and holiday Monday.
Thanks in advance , for your response.

November 7, 2024
4:40 pm
hwyc
GTA
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In this case, Saturday is the transaction date, whereas Tuesday would be the posting date. The post date matters. However, during circumstances such as yours, I've experienced different practise with different FIs.

Entitlement? I cannot see the grounds to it here.

November 7, 2024
7:09 pm
Norman1
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Saturday is not a banking business day. Neither is Sunday nor Thanksgiving Monday.

Transactions accepted after the closing time of each business day are deemed to be done the next business day.

If one wishes to earn interest on a deposit over a long weekend, then the deposit needs to be made by the closing time on the last business day before the long weekend.

November 7, 2024
10:13 pm
Loonie
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Norman is correct inasmuch as this is how banks usually do business.
Some FIs, however, will give you credit from date of transaction - deposit or transfer request. I can't remember which ones (maybe Hubert?), but not very many.
In addition, some will debit you immediately when you request a transfer-out even though they hold onto the money over the weekend for free. Whether you get dinged on deposit or on withdrawal, it's basically the same either way, but you have to be careful with long weekends.

In order to avoid this mess as much as possible, and to spare myself the bother of keeping track of who does what, I try to restrict my transfer requests to Monday and Tuesday, excepting stat holidays. This gives FIs the maximum time to get it done by Friday. Be careful too of long weekends occurring at month end or year end as your money may appear to be in neither FI. This can really mess up your bookkeeping. Beware Meridian in particular.

With cheques however, I like to deposit them right away, lest I lose them or forget. Nothing lost.

November 8, 2024
4:54 am
savemoresaveoften
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Not side with the banks, but it is proper that interest should not be given on deposits make on wkend / holidays. The money does not arrive at the bank until the next business day, and they technically can not redeploy / earn anything on it until then.
However, online transfer btw banks have been quite generous, as it usually have posting date being same day, even after reg business hours, if it's done Mon thru Fri.

November 8, 2024
9:03 am
Norman1
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There are no Payments Canada ACSS exchange deadline times (9:30 am, 4:30 pm, and 9 pm Eastern time) on weekends and other non-banking business days.

Any clearing items that were exchanged Saturday of the Thanksgiving long weekend are handled as if they were exchanged by the next deadline of Tuesday 9:30 am. The items would be settled like the other items exchanged by the last deadline (9 pm) on Tuesday.

It is up to each bank how it treats weekend deposits into the accounts offered to its clients. Regardless, the bank isn't going receive the funds for deposited cheques or automatic funds transfers from the other bnak any earlier than the Payments Canada rules specify.

November 8, 2024
9:35 am
AltaRed
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Like Loonie, I never expect/assume any transactional activity on non-business days.

Anything I want to happen in a given week must be done in time for it to be processed/settled (deposits, withdrawals, buys, sells) by Friday afternoon (most weeks barring a non-business day on Friday such as Good Friday). On that basis, I make a basic assumption to have everything done for the week by Thursday night.

November 9, 2024
8:30 am
InterestThis
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Doubt they will give interest on that on a weekend, but could try going into the bank to see if they would adjust it with a courtesy credit, if its a large amount?
For example, even online Simplii (CIBC) pushes everything past the weekend.

There can be an inverse use of this for the brave-hearted if you know the exact transaction times. If a person does a PULL into an account Friday aft, and if they are 100% certain it will be pulled from Tang chequing at 7:00 am Monday, then a person can get "double interest" for Friday, Sat and Sunday, by moving it into the Tang chequing after midnight Monday morning.
Of course with a large sum, if you do it incorrectly, that is a total disaster.

November 9, 2024
2:54 pm
Doug
British Columbia, Canada
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You still earn interest on balances on weekend days, though. This is about trying to make a deposit on a non-business day and gain access to that added interest as if they had deposited it on Friday.

I sympathize, albeit slightly, with the OP's gripe, but otherwise, think this is a nothing burger. Move along. sf-cool

November 11, 2024
3:36 pm
thegov
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Just curious - what about internal on-line transfers on a Sat between two of your own accounts -- e.g. Tang Chq to Tang Savings. They note the transfer on the Sat on both accounts. Have never actually done the math to see how they allocate interest.

November 12, 2024
6:57 am
InterestThis
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thegov said
Just curious - what about internal on-line transfers on a Sat between two of your own accounts -- e.g. Tang Chq to Tang Savings. They note the transfer on the Sat on both accounts. Have never actually done the math to see how they allocate interest.  

Tang does interest etc on the weekends, its something they do internally.
But others don't, some other banks will even push a received Interac to the next business day, even though its received on a weekend.

November 12, 2024
7:25 am
Norman1
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Transfers between one's Simplii accounts during weekends are dated the next business day.

I transferred funds from my Simplii HISA to my Simplii chequing account this past Remembrance Day long weekend. Funds were moved immediately. But, the withdrawal and deposit transactions were post-dated Tuesday, November 12.

November 12, 2024
9:42 pm
Loonie
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Norman1 said

I transferred funds from my Simplii HISA to my Simplii chequing account this past Remembrance Day long weekend. Funds were moved immediately. But, the withdrawal and deposit transactions were post-dated Tuesday, November 12.  

I don't quite follow this. Where was your money on Nov 11, and how would you know?

I regularly write cheques in such circumstances (at another FI). The money shows up online in the receiving account immediately, and I assume it's actually there. I write the cheque immediately after the transfer.
If you are moving funds from savings to chequing, it would be in the FI's best interests to do so immediately as the interest rate in chequing is less or zero. If it doesn't show as a transaction until the next business day, do they give you savings interest over the weekend?

November 13, 2024
2:07 am
InterestThis
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Yes they give savings interest over the weekend, as the transaction posts the next business day, even though the funds are available right away.
Sometimes you can even get a day of double interest when pulling from one bank to another.

November 13, 2024
8:42 am
Norman1
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Loonie said

I don't quite follow this. Where was your money on Nov 11, and how would you know?

… If you are moving funds from savings to chequing, it would be in the FI's best interests to do so immediately as the interest rate in chequing is less or zero. If it doesn't show as a transaction until the next business day, do they give you savings interest over the weekend?

Money was moved from the savings account into chequing account immediately. The transfer was visible in the accounts through online banking by November 11. Could have withdrawn some of funds from the chequing account at an ATM on November 11.

However, the transfer transactions were dated November 12.

November 13, 2024
2:35 pm
Loonie
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Yes, I see.
but if the statement shows Nov 12 as the transaction date, then it seems that you should have received savings rate interest for the 11th. Did you? I would assume not. I think it's time the banks learned to reconcile account activity with transactions. With online banking, banking is effectively a seven-day-a week business.

November 14, 2024
5:42 am
InterestThis
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Tang does seem to operate 7 days a week, but its clearly an internal mechanism for the customer account.
But most banks will operate with standard banking hours.
But like I said above, a person can sometimes benefit from this, in fact just this week I got double daily interest pulling money into an account, you get the interest on the pull-day, but it posts a day later on the other account.

November 14, 2024
5:52 am
Norman1
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Loonie said

but if the statement shows Nov 12 as the transaction date, then it seems that you should have received savings rate interest for the 11th. Did you? I would assume not. …

Simplii has always paid interest based on the effective dates appearing in the monthly statements. Since September, their statements show both the posting date and the effective date for transactions.

I fully expect I will receive savings rate interest for November 11 when interest for November is paid in a few weeks as the savings account withdrawal was effective November 12.

November 14, 2024
11:54 am
Loonie
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That's interesting. So, if you'd made a cash withdrawal on the 11th, you would have received savings rate interest on it even though the money was gone?

November 14, 2024
8:55 pm
Norman1
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Yes, I would still earn interest on the funds withdrawn by ATM in cash on November 11 as the withdrawal would be effective November 12!

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