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Same Day Deposit

bobert456
  |     |   188 posts since 2022

Now that rates are higher, doing deposits of sizable funds makes it important to determine how quickly those deposits will start earning interest.

Many places allow deposits via atm, edeposits via online images, or via other means like SHARED BRANCH for many credit unions.

Most of those will take a while before they clear the deposit, and start paying interest.

I'm looking for leads for places that can take my check deposit, and put it to work in a savings or money market at 4-5% immediately .... hopefully same day as the deposit. Sure, they still have to validate the deposit, but if good, the interest still starts back with the deposit date.

I have only found one local BANK that will take my check, put it in a Money Fund, and pay interest starting that same day. Problem is that when I need to move the funds, the money fund will charge monthly fees if remaining balance is less than 25K.

I see many places that have savings or MMF that do not charge monthly fees, but clearing a deposit to start paying interest can vary from one to multiple days. I have used ACH to ALLY, but they now usually take 3-5 days before the deposit shows up in the savings account to start earning interest.

Any suggestions for easily parking liquid funds and still earning interest immediately, and then easily allows for later movement to other investment products at other firms??

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4


Answers
enduser
  |     |   711 posts since 2015
I'm not sure why you seem to be having issues depositing a check and earning interest immediately. For convenience I use my local CU to make all my check deposits. They will deposit my check to the account of my choosing [checking, savings, or money market] and they start paying interest immediately on the full amount.

The only thing that I hate is that sometimes they will place a 5-business day hold on a portion of the check deposit depending on the dollar value, even though the balances on all my accounts always exceeds the face value of the check, but the entire check deposit is earning interest.

After these funds clear I immediately ACH pull them via Ally 1 day transfer, then ACH push it the very next day from Ally to any of my other linked accounts that offer a higher interest rate.

I have never paid any fees to my local CU, nor are there any limit on a minimum to keep on any of my accounts. You need to shop around for a FI that better meets your needs.
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bobert456
  |     |   188 posts since 2022
... thanks .... I forgot to mention that I am looking for a savings or MM account paying 4-5%, and immediate interest
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enduser
  |     |   711 posts since 2015
You are not going to find a single bank that meets all of your needs. You have to improvise and find several that meet your needs. You have to be more savvy.
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bobert456
  |     |   188 posts since 2022
and MOST I have checked with when doing an Edeposit .... like ALLY will only post the deposit the next day
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LongTimeDAFan
  |     |   69 posts since 2022
You might think about keeping your liquid funds in treasury bills versus savings accounts or MMAs. They have 4 week T-bills that are auctioned every week, and they debit your bank account for the purchase and put it back into your bank account at maturity. So you don't have to transfer any monies around and lose interest doing so. The 4 week T-bills are paying just under 5.4%, and they are state and local income tax free. I've been doing this with my liquid funds for a while now during these higher rates, and I have been pleased with the results. I keep a little in a checking acct for paying bills and a small amount in a MMA as reserve money, but the rest is earning interest in T-bills. You can schedule them to mature on the same day you re-purchase, so there's no down time on earnings. I have noticed that the maturing funds are usually in my account the day before they mature. Just another option for you to consider.
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txFish1
  |     |   480 posts since 2023
My experience has been like enduser mentions . I have deposited money via check and ACH at Advancial, EECU and Ciera Bank locally and all have started earning interest the day of the deposit. I sent money via shared branch to USSFCU and the money started earning interest the same day.
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NYCDoug
  |     |   335 posts since 2011
Customers Bank has a Yield Shield Savings account earning 5.15% APY. It is entirely liquid, but does have that $25k minimum you seem to disdain. (I don't understand why this bothers you; contradicting your opening statement, fewer and fewer FI's offer over 5% these days, be they savings accounts or certificates).

But the main draw is that your ACH transfers, into and out of Customers, when initiated at Customers, can be scheduled to occur same day. (You may, in fact, end up earning interest at both FIs, if there is a delay in processing at the external FI).

In addition, the number of external banks you can link to Customers, via ACH, seems limitless. As also is the $ amount you can transfer at any one time.
Customers is my ideal hub account.
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midas89
  |     |   1,033 posts since 2017
@NYCDoug Customers Bank ACH transfer $ amount is not limitless. The total amount allowed is great, for sure, just not limitless.
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NYCDoug
  |     |   335 posts since 2011
Exactly, midas! I have yet to run into a limit there . . . so it "seems" limitless. At least to me :-)

I've transferred several hundred thousand dollars there, at a time. To be sure, staying below the FDIC $250k threshold for insurance coverage. So, far all intents and purposes, it fits my needs.

I do have a $400k+ CD (insured, via beneficiaries) that matures tomorrow, at GTE. So if my pull by Vanguard tops out on Monday (maybe they have a $100k limit? not sure) then I'll bring the rest over via Customers . . . to distribute the next day (Tuesday) to Vanguard and elsewhere I have savings accounts whose coffers need filling.

I'll report back here if I hit any Customers speed bumps :-)
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midas89
  |     |   1,033 posts since 2017
@NYCDoug. I laughed.

Customers Bank ACH limits: For Same-Day: $100,000 per transfer; $250,000 maximum per day.

For not same-day: $250,000 maximum per transfer and also per day.

Monthly ACH limit: $1,500,000.

The above limits were accurate in the past, and I hope they remain exactly as listed above forever. Long-live Customers Bank and their fabulous ACH transfer policies. The only change I'd like to see with Customers would be the addition of Zelle, and allowing the addition and/or removal of beneficiaries easily ourselves via their website, versus having to call in and then have a form needing to be signed, but it's also okay if they never.

I hope no speed bumps for you as well. Speaking of speed bumps: "The Speed Bumps" was the name of my hard rock band I started in high school. The reason why I chose that name is because with my prior band, audiences constantly screamed at us to slow down, and because we then decided to only play slow jams.
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dantheman46
  |     |   95 posts since 2019
Primis Bank has a checking and savings account which pay 5%. You can initiate a transfer with their transfer service from another bank and the funds are placed on hold but begin earning interest immediately. Same thing with using their mobile deposit service for a check deposit.
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Sanger
  |     |   321 posts since 2022
I have an account with Brillant Bank they pay 5.35 percent I wire money to them all the time it is posted to them immediately and earning interest the same day it goes directly to my account within a two-hour period for large amounts of money for me it is the only way to go .
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me1004
  |     |   1,381 posts since 2010
Yes to the others, I know only of one place that does not start accruing interest on day of deposit, and that is Service CU. But all others have alwasy started it earning interest on day of deposit, even as it still has a hold on it.

I have come across several now where you lose all accrued interest if you close the account before it is posted -- meaning you could lose an entire month of interest.
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111
  |     |   672 posts since 2019
me1004 - "I know only of one place that does not start accruing interest on day of deposit, and that is Service CU" -

Just FYI, I saw a notice a while back from UFB Direct (a division of Axos Bank), that they were going to have a policy of not starting interest accrual for some number of days following an ACH credit to their "high-yield" savings account. I think that number may have been as large as 4 or 5 days. I can't confirm that since I haven't moved funds to that account since I saw that notice.

In fact I've removed most of my funds from there, not because of this issue but because right now Treasury bills and/or Treasury money market mutual funds at a brokerage seems a better short-term option, especially with the full and/or partial state tax exemption.
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Hooked
  |     |   240 posts since 2019
I love the mobile check deposit feature at Ivy Bank. Their per check limit (and also per day, I believe) is $50k, capped at $100k per month. Interest is earned starting the same day though funds are not available for withdrawal for a few days. To transfer money out, it is three days if you initiate from Ivy but I use Ally to pull, which is only one day for me.

Ivy’s High-Yield Savings has a 5.3% APY on balances $2,500+ now guaranteed through 09/30/24. Unsure what their new rate will be from October but they have been competive. I have their Indexed Savings at a higher rate though that account is not currently accepting new applications.
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