Bank to bank transfers

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Forums › Finance and wealth management › Bank to bank transfers

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Ultimate Geek

#1411778 23-Oct-2015 13:02

Bear in mind what it's like in other countries: Inter-bank transfers in North America are a nightmare compared to New Zealand. This was one of the catalysts for non-bank entities such as Paypal to emerge.

trig42

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#1411789 23-Oct-2015 13:11

I have a Westpac account and a Kiwibank, and can confirm payments I make to Kiwibank from Westpac appear usually within the hour. Not sure about cutoff times, I have only ever done it during a work day.

Hammerer

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#1411793 23-Oct-2015 13:15

Some of the bank websites are clear on interbank transfers but some aren't. Maybe I just couldn't find the correct page.

Unclear:
ANZ
Cooperative Bank
TSB

Hourly (at best 8am-midnight)
ASB
BNZ
Kiwibank

Lias

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#1411795 23-Oct-2015 13:17

You think ANZ is bad.. I also use RaboBank, and it can take days for funds to clear, even direct cash transfers. it will show up the next business day, but you cant access the funds for days and days, like a cheque in the old days.. it's utter dark ages stuff.

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Handsomedan

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#1411827 23-Oct-2015 13:58

Lias: You think ANZ is bad.. I also use RaboBank, and it can take days for funds to clear, even direct cash transfers. it will show up the next business day, but you cant access the funds for days and days, like a cheque in the old days.. it's utter dark ages stuff.

Many banks like this in NZ do not have their own core banking platform as such and are operated under an agency structure by a major bank - and they don't subscribe fully to the SBI (and other) initiatives.

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Hammerer

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#1411832 23-Oct-2015 14:03

Lias: You think ANZ is bad.. I also use RaboBank, and it can take days for funds to clear, even direct cash transfers. it will show up the next business day, but you cant access the funds for days and days, like a cheque in the old days.. it's utter dark ages stuff.

It's not that dark ages stuff. As wsnz points out the NZ system is advanced and the sort of issues you have are actually normal around the world. Cheques still take 3 to 5 days to clear.

RaboBank appears to support same-day payments so I'd be surprised if you can't get cleared funds in transfers from other banks. The NZ clearing system supports this and that's what other banks do. Maybe RaboBank treat all deposits like cheques. Maybe have a different clearing arrangement with the central settlement system. It used to be the case that some banks used the main clearing banks to settle their transactions which would add a day or two to clearance times. From memory, TSB used to do this through ASB in the 1980s and 90s.

By the way, there are no "cash transfers" in the banking system. We distinguish between cash and other media but the funds transfer only distinguishes between cleared or uncleared funds. Cleared funds are available to be used whereas uncleared funds (e.g. cheque deposits) are still awaiting settlement (where the banks complete the transaction). As far as I know, the term "cash transfer" is only used for state aid/welfare programmes.

graemeh

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#1411840 23-Oct-2015 14:06

graemeh: I have just paid $1 from my Westpac account to my ASB account. I'll try to record exactly when it arrives.

It has arrived and appears to have taken around two hours.

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Lias

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#1412924 23-Oct-2015 17:15

Hammerer:
Lias: You think ANZ is bad.. I also use RaboBank, and it can take days for funds to clear, even direct cash transfers. it will show up the next business day, but you cant access the funds for days and days, like a cheque in the old days.. it's utter dark ages stuff.

It's not that dark ages stuff. As wsnz points out the NZ system is advanced and the sort of issues you have are actually normal around the world. Cheques still take 3 to 5 days to clear.

RaboBank appears to support same-day payments so I'd be surprised if you can't get cleared funds in transfers from other banks. The NZ clearing system supports this and that's what other banks do. Maybe RaboBank treat all deposits like cheques. Maybe have a different clearing arrangement with the central settlement system. It used to be the case that some banks used the main clearing banks to settle their transactions which would add a day or two to clearance times. From memory, TSB used to do this through ASB in the 1980s and 90s.

By the way, there are no "cash transfers" in the banking system. We distinguish between cash and other media but the funds transfer only distinguishes between cleared or uncleared funds. Cleared funds are available to be used whereas uncleared funds (e.g. cheque deposits) are still awaiting settlement (where the banks complete the transaction). As far as I know, the term "cash transfer" is only used for state aid/welfare programmes.

Other than my 93 year old grandma I don't know anyone who's used a cheque in a decade.
I barely even use EFTPOS any more, only at places that dont support PayWave, and I try and avoid places that don't have paywave.

Inter bank funds transfer should be instant, and clearance should be instant, but maybe I just expect too much. I have too much Gen Y in me and demand instant gratification :-P

Hammerer

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#1412987 23-Oct-2015 18:59

I see that RaboBank is not one of the banks who directly participate in the four payments systems: ANZ National Bank, ASB Bank, BNZ , Citibank, HSBC, Kiwibank, TSB Bank and Westpac New Zealand. That probably explains much of the delays you mentioned.

Re cheque use: while age has something to do with it - over 65s issue as many cheques as the under 65s - most cheques are issued by companies.

mdf

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#1412990 23-Oct-2015 19:07

As others have said, NZ now has a world-leading interbank settlement system - Settlement before Interchange run by Payments NZ. Typically is within a couple of hours (for participating banks) and at worst overnight, but it is subject to several factors.

Last time I checked, Rabo wasn't a clearing bank - Westpac does it for them (as it does several other banks), which is why you send money to an 03 (Westpac) account for deposits. Rabo will therefore always take a bit longer.

nathan

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#1412992 23-Oct-2015 19:12

wsnz: Bear in mind what it's like in other countries: Inter-bank transfers in North America are a nightmare compared to New Zealand. This was one of the catalysts for non-bank entities such as Paypal to emerge.

I just moved to live in Seattle and setup a new US bank account.

I wanted to transfer some money from an existing US bank account I had to my new checking account

-> 6 working days to process the bank wire instructions I submitted online, so I could then have the privilege of paying a $10 fee to transfer from one bank account to another.

Lias

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#1413016 23-Oct-2015 21:01

nathan:
I just moved to live in Seattle and setup a new US bank account.

In a complete derailment, congrats on getting a job at the mothership!

kendog

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Ultimate Geek

#1413022 23-Oct-2015 21:13

I was talking to 8 different businesses about this today and they all said Westpac is so slow at clearing payments.

Aredwood

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#1413057 23-Oct-2015 23:37

Also be careful with receiving payments from ANZ. As their system allows you to create an automatic payment even if you don't have enough money in the account. The payment will go out and then reverse back the next day. There have been cases of trademe sellers ripped off as they see the payment come in, they ship the goods, the payment reverses but the item has already been shipped.

Hammerer

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#1413068 24-Oct-2015 01:51

The protection from shipping goods before the payment is cleared is to check the "money available" as distinct from the "current balance". They should be the same if all payments are cleared. I've sent Trade Me sales without checking if funds are cleared but thankfully I've had no reversals.

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