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Can ACH Deposit To Account Be Delayed Multiple Days?

me1004
me1004   |     |   537 posts since 2010

Can an ACH deposit to a savings  account  be received by the bank or credit union but with instructions not to deposit it to my account until some days later? 

I have this very situation going on now with a tax refund from the IRS that Alliant Credit Union has been sitting on but not depositing to my account. 

Alliant has had it listed on my account as pending for at least two days now -- and that listing indicates an "expiration" date of tomorrow,  April 20. I called Alliant and asked why it is not  already posted. Both the  basic  customer service representative and a supervisor acknowledged that they do have the money from the ACH, it is not that they simply have a notice the deposit will be sent, but they say they have received it. But they say the sender (the IRS) has indicated not to deposit it in my account until tomorrow. 

This strikes me as bizarre. If the sender has already given the money, as Alliant confirms, how can they delay deposit  to my account, how  can they require Alliant to take multiple days of float with me getting no interest? Its not even as if the tax refund is not yet due. I could get no further explanation from Alliant, they simply said that is how it is. I also don't see how "expiration date" means "do not deposit until  that date." If anything it seems "expiration date" would mean deposit no later than that date or lose it. So is Alliant actually taking the maximum float  it can, and only then making the deposit?

Is this a true explanation Alliant is giving, or are they simply exploiting me, maybe cheating me? 

I note, a withdrawal that came in from the IRS the same day was posted immediately, the money immediately taken out of my account! While the withdrawal was taken immediately, Alliant is sitting on the deposit for multiple days.



Answers
Ricochet
Ricochet   |     |   231 posts since 2010
me1004.....remember this panic attack you had

Alert For Those In HSBC Promo Advance Savings -- Changes

Don't make us go through this again.
The bank gets notice of a refund check and they give  you credit for it even though they didnt actually get it yet. Then the normal 2-3 day transfer takes place. plus holiday and weekend delay.
Chill on the rip-off theories already.
maybe my post wont get deleted again as an personal attack comment
Sylvia
Sylvia   |     |   38 posts since 2012
This might answer your question, http://thefinancebuff.com/why-is-ach-slower-at-some-places-than-others.html.  I’ve done ACHs through a number of places.  Alliant is the best at making funds available ASAP.  Some delay availability for over a week.  Based on my experience (and reading foregoing link), I'm inclined to give Alliant benefit of doubt.
me1004
me1004   |     |   537 posts since 2010
Thank you, Sylvia. From that article, I see it says yes, the Receiving Deposit Financial Institution (RDIF) is under a requirement to deposit the incoming money on the date the Originating Depository Financial Institution (ODIF) instructs. Thus, even if the money is received earlier, if the ODIF instructs to wait until a later date to make the deposit, the RDIF must wait until that date.

That is what Alliant is doing, waiting for the date they have been instructed to make the deposit. They apparently don't even have the option to deposit it sooner even if they wanted to, even though they already have it, as they confirmed.

I had no idea the sending institution could set a later date for deposit to my account.

The pertinent info from the article (bold face italics added by me):

The ODFI is responsible for making sure they have the authorization to credit or debit the other account. That’s why sometimes you are asked to fill out a form and send in a voided check. The RDFI is required to credit or debit the account on the date the ODFI specifies. Therefore if ACH takes longer at one place than another, the delay is almost always caused by the ODFI, not caused by “the system” or the receiving end.
It would seem this rule overrides Regulation CC. As Alliant has confirmed, the money will not be deposited into my account until more than one day after they received it, because, as they said, that is what they have been instructed by the ODIF.
anzavista
anzavista   |     |   3 posts since 2012
I would have Alliant put their answer in writing and  then submit that writing to the regulatory authorities (NCUA and CFPB).  I have found Alliant to be highly ethical but this may be some quirk in their system.
Ricochet
Ricochet   |     |   231 posts since 2010
Federal Reserve Board of Governors Regulation CC covers funds availability of deposits. Electronic deposits must be made available no later than the beginning of the next banking day after receipt. (Other FRBG regs may require immediate availability but CC is the one that all tellers and bank staff have drummed into their heads from day one.)
Ally6770
Ally6770   |     |   1,974 posts since 2010
I think you will find the same answer with some retirement checks which are due on the first of the month but some accounts will have the pending deposit posted for 2-3 days before the first of the month and won't be available until the first of the month. (At least mine are) Same when I was working my paycheck showed pending on Wednesday and was not posted as available until Friday which was payday. 
When my husband was working his payday was Wednesday but his paycheck would show pending
on Friday or Monday. 
Saver5
Saver5   |     |   10 posts since 2015
I don't think Alliant has the money until the "expiration date".  Here is why.  I go to Alliant.  With the employer I currently have, I don't see anything about my paycheck until it suddenly appears in my account on payday.  There is no prior notice on my account and no expiration date.  With my previous employer (and also with the IRS and state refund), I would see a pending deposit two days before payday, with the expiration date being the day announced as payday (Friday);  that would be the day the funds showed up in my account.  I suspect there are two ways to initiate an ACH credit.  In one, the one with the expiration date, the institution is told in advance when they will be credited by the Fed, and they actually get the cash on the expiration date.  I suspect that the customer service people you talked with at Alliant don't really understand the nuts and bolts of what is happening.  I'll bet if you talked to a knowledgable person in their Operations dept who really understands how ACH works, they would tell you that Alliant doesn't really get the funds until the expiration date.
me1004
me1004   |     |   537 posts since 2010
Alliant insisted they do have the money. They said they could not deposit it because it came with an instruction to do so on the specified date.
Saver5
Saver5   |     |   10 posts since 2015
I don't believe it.
me1004
me1004   |     |   537 posts since 2010
Well, I was doubtful too, and thus I posted the question. But Sylvia's link seems to confirm what Alliant said - the sender can specify a date for the deposit to my account.
Ally6770
Ally6770   |     |   1,974 posts since 2010
I forgot about it but when you go the IRS site and follow the link for "WHERE'S MY REFUND" it tells you after the return has been processed the date when the money will be deposited into your account. 
Ally6770
Ally6770   |     |   1,974 posts since 2010
Just a note. I just logged into my checking account this morning and it shows as a pending deposit  for my pension check and posts that it will be deposited tomorrow on the 29th. I know most retirement checks are posted on the first but the board made a resolution many years ago to deposit the check on the Friday before the 1st if the 1st fell on a Saturday or Sunday. 
I have not been on line with my account for a couple of weeks so it could have been there for a few days.