Do you lose any interest during ACH transfers?

Do you lose any interest during ACH transfers?
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I want to transfer $100K from my 1.25% Palladian savings account to my 1.40% Dollar Savings account but have to go through my Alliant 1.15% savings account to pull, then push. The daily interest isn’t that large, just 3 bucks, so the question is mostly academic. Will I lose any interest while the money is being transferred? Or maybe get double interest if its on the books of two banks at once?

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blind guess here, but bank wires happen within a day so i think you’re good. your money will be somewhere every day and therefore earn something every day.

Wire isn’t ACH.

i think it works the same way though

I don’t think so, since days after the fact, the transfer appears to be instantaneous. Do a test I guess and see if the money gets backdated to the original transfer date or not.

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I don’t think so since wire transfers usually have fees while ACH transfers (push and pull) hardly have fees attached to them so if ACH is available people make sure to avail of it.

With Alliant, I know the max amount that can be transferred in and out at one time is $25,000. It used to be up to $100,000 in the past. In my experience ACH push from Alliant have been transferred next day to other banks but not vice versa. DiscoverBank takes a while to ACH push and if it’s a large amount, they’d even call for potential fraud alert before they push the funds out.

No loss in interest when you pull with Alliant.
But you lose one day interest when you push with Alliant.

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I think, actually, some banks/FIs would do a push/pull and claim it took 7-10 business days (or some obscene amount of time) simply to park it in their account, grab a few bucks, and then push it on. Pretty clever, as long as no one asks “why?” right?

This is pretty generic – ACH pulls usually show up at the destination account and start accruing interest quicker than ACH pushes (sometimes the pulled funds are added at the destination before they are subtracted from the source). Banks slow down ACH push on purpose – they make money, you don’t. This could be 1-3 days, depending on bank, and more if you do across the weekend.

Wire transfers and Zelle (clearXchange) are instant. Next-day ACH is supposed to be coming online, but may not always be free.

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I didn’t know that about Alliant but since I use it mainly as hub to fund bank sign up bonuses, the profits made from sign up bonuses make up for the “lost” interest.

I have noticed in the last six months or so, that PayPal withdraws are basically overnight now. They used to be four days.

Can we use Zelle to replace the ACH transfer facility provided by the bank?

I noticed that recently especially when I transfer CBs from portals, it takes no longer than 48 hrs and I see it in my bank account.

I got an alert one time that if I want a quick transfer of funds to my PP balance coming from my bank account, there is a charge of 25 cents. I prefer the free methods.

Yes, you’ll lose that $3 to make the $150 in higher annual interest.

So, let’s use this as an experiment. After everything clears, tell us the dates of ach order entry at the source and posting at the destination for both accounts.

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If both banks support Zelle, instant transfer is better than not instant transfer, isn’t it?

The only issues I can think of are: (1) Zelle might have daily/monthly limits that are much lower than ACH limits and (2) I don’t think you can schedule Zelle transfers like you can with ACH.

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Another thing to consider is that 1 day of lost interest becomes 3 days of lost interest if the transfer happens over a weekend. So you’re better off initiating transactions earlier in the week.

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I didn’t know this and will take note of it from now on. Thanks!

I remember an ancient post on FW where someone claimed that moving money around would allow you to double dip on interest during the day of the transfer.

You can do this with PurePoint.