fecking banks

[ratewhore]

Seen a few ads recently where the banks are telling us how great they are because they now pay interest on money credited straight away. Just heard another one for Lloyds TSB on the radio and it annoys the feck out of me.

Now I don't know about you but I want the full amount credited on the day, not just the bleedin interest...

[ladymuck]

I agree! There is no reason why a cheque should take 3 days to clear, or why BACS is a 3 day cycle or why you should have to remortgage just to cover the fees they charge for a CHAPS transfer.

Actually, there is a reason - the banks can invest that money on the overnight markets, make a pretty penny or six before deigning to pass on the funds to the intended recipient. You pay a fortune for same day transfers, like CHAPS, because they are losing money, not because there is an additional administrative burden.

When I used to work in treasury, I regulary would put a few mil on overnight deposit to earn the company more interest. For about $2m you'd get around $25k back, depending on how in demand dollars were. Scale it up to the kinds of zeros banks deal with and you're talking a lot of mazooma.

B*stards.

[TheMonkey]

That never works unless you are with the same bank for both source and target cash and use BACS or something.

They are supposed to be replacing the arcane system at some point in the future.

[BoredBloke]

Being expensive and slow on all these things allows us all the get 'free' banking and is how our banks stay so profitable.

[Lucifer Box]

Seen a few ads recently where the banks are telling us how great they are because they now pay interest on money credited straight away. Just heard another one for Lloyds TSB on the radio and it annoys the feck out of me.

Whoopee-doo. And for the big 4 that's at a whopping 0.1% so that's really going to hurt them.

Then again, why not buy shares in the big 4 and reap the rewards? Be part of the problem, not part of the solution.

[OwlHoot]

Actually, there is a reason - the banks can invest that money on the overnight markets, make a pretty penny or six before deigning to pass on the funds to the intended recipient. You pay a fortune for same day transfers, like CHAPS, because they are losing money, not because there is an additional administrative burden.

and I think the Government makes some money by taxing interest the funds earn while in the Bank of England's clearing accounts.

It's only a few million quid a year, but for a greedball like Brownstuff enough to discourage any moves to shorten the time the funds are in transit between accounts.

[threaded]

Don't praise the worthy, and people won't compete.
Don't value material wealth, and no one will steal.
Don't tempt, and no one will crave.

Therefore, when the Sage leads,
She clears our minds and fills our hearts,
Weakens ambitions and strengthens bones.
When you eliminate greed and excess desire,
There can be no evil.

Go with the flow,
And all will be good.

[expat]

I agree! There is no reason why a cheque should take 3 days to clear

a what? Is that some kind of money transfer?

[Epiphone]

BACS is gone by Summer 2007 replaced by BACS-IP something or other. CHAPS costs more cause someone at the clearing house manually checks the source and destination accounts.

[ratewhore]

Is that why it's called CHAPS? Because of the chap who checks the details...