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Old December 31st 16, 11:38 PM posted to uk.finance
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Default Why does NatWest take payments early?

Not something I'll lose sleep over, but I'm curious...

Just checked my NatWest online current a/c statement (00:30 on
1/1/2017). The most recent two entries are dated 3/1/2017. About 220
in total, taken two days earlier than the scheduled standing order
date of Tuesday 3rd January.

Multiply a few hundred thousand times and that's a tidy bit of
illegitimate interest going to Natwest, isn't it?

--
Terry, UK

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Old January 1st 17, 02:24 AM posted to uk.finance
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Default Why does NatWest take payments early?

On Sun, 01 Jan 2017 00:38:40 +0000, Terry Pinnell
wrote:

Not something I'll lose sleep over, but I'm curious...

Just checked my NatWest online current a/c statement (00:30 on
1/1/2017). The most recent two entries are dated 3/1/2017. About 220
in total, taken two days earlier than the scheduled standing order
date of Tuesday 3rd January.

Multiply a few hundred thousand times and that's a tidy bit of
illegitimate interest going to Natwest, isn't it?


That's fairly normal for most banks. Debits are entered on the last
working day before a payment is due. Payments due on Mondays are
usually debited on the previous Friday.

People often used to withdraw money from an ATM over the weekend
forgetting that wouldn't leave enough money in the account for
payments due on Monday, which then failed to go through. When failure
to make a payment on time involved some kind of penalty they would
then blame the bank.

I don't think it necessarily involves any loss of interest. I believe
banking transactions have two dates associated with them, a "ledger
date" and a "value date". The ledger date is what gets shown on your
statement, but interest is calculated based on the value date.
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Old January 1st 17, 02:39 PM posted to uk.finance
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Default Why does NatWest take payments early?

Chris in Makati wrote:

On Sun, 01 Jan 2017 00:38:40 +0000, Terry Pinnell
wrote:

Not something I'll lose sleep over, but I'm curious...

Just checked my NatWest online current a/c statement (00:30 on
1/1/2017). The most recent two entries are dated 3/1/2017. About 220
in total, taken two days earlier than the scheduled standing order
date of Tuesday 3rd January.

Multiply a few hundred thousand times and that's a tidy bit of
illegitimate interest going to Natwest, isn't it?


That's fairly normal for most banks. Debits are entered on the last
working day before a payment is due. Payments due on Mondays are
usually debited on the previous Friday.

People often used to withdraw money from an ATM over the weekend
forgetting that wouldn't leave enough money in the account for
payments due on Monday, which then failed to go through. When failure
to make a payment on time involved some kind of penalty they would
then blame the bank.

I don't think it necessarily involves any loss of interest. I believe
banking transactions have two dates associated with them, a "ledger
date" and a "value date". The ledger date is what gets shown on your
statement, but interest is calculated based on the value date.


Thanks Chris, understood.

--
Terry, East Grinstead, UK


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