How come nothing ever goes through on like a balance sheet when online banking over the weekend? It always updates on Monday it seems like. What’s that all about?
In: Economics
So there’s an actual reason for this. It’s pretty simple really.
When you put money in the bank, you’re not getting 365 days of interest. You’re getting 300 days of interest. Because banks are only doing business 300 days of the year.
This is why banks won’t ever convert to 24/7 banking in the US. It would require a major rewrite of the banking legislation not to mention a huge alteration of the financial system. Every company and individual would get 65 more days of interest on their deposits.
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Fun fact people have to go through your requests and they get tired so they’d like a day off.
The technology that the Federal Reserve uses is ancient. They use Doss and their system can’t even use floppy disks. Too advanced.
One of the reasons CryptoCurrency was created.
The current banking and settlement processes are very antiquated.
As a software engineer specializing in payments its long overdue. Bitcoin and crypto will fix all of this nonsense.
highly unrelated but I’m blatantly using the small amount of attention this thread is getting to shamelessly plug this youtube video because I 100% genuinely believe in the importance of it’s message right now. Thanks for all the responses again and if you like, please check out this youtube videos about how Hyperlinks are LONG overdo for an update. https://youtu.be/Tpd8tT0BLYA
An extra bit of information that hasn’t appeared in other answers:
In addition to the transfers between banks being blocked in weekends by the federal Reserve, many smaller banks are unable to do internal operations in weekends. This is because they don’t actually own the software or computers that their bank runs on, but instead pay a company to do that for them. The largest company, FiServe, actually does turn their machines off for the weekend (or did in 2017 when I was working for one of their clients)
Thank you for all the answers, a serious question to all of yall who know… what happens to your livelihood when these jobs are eventually lost to automation too? What are you’re “pull yourself up by your bootstrap” options?
Processing. It doesn’t happen on the weekends when no ones there to make it happen.
At the end of the day the system starts processing all of the transactions. It sends out the EFTs and posts the balances to accounts and ledgers. So no one is there on Saturday or Sunday to kick off and watch the processing to make sure it goes right. That’s why any transactions that you do on the weekend aren’t posted until after processing on Monday evening.
I used to work in IT for a mid sized community bank. The IBM System I we used technically wasn’t my responsibility but somehow when something was wrong I had to fix it.
I like how they still charge fees as if they are paying humans to work 24/7 processing paper checks.
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