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Not OP, but I live in the US and don't pay fees on transfers between my brokerage account and checking account. They take a few days to clear though.
by workthrowaway27 9y ago
Not OP, but I live in the US and don't pay fees on transfers between my brokerage account and checking account. They take a few days to clear though.
- JumpCrisscross 9y ago> I live in the US and don't pay fees on transfers between my brokerage account and checking account. They take a few days to clear though They're probably doing an ACH [1] transfer, which is net settled [2]. They take longer but are cheaper than wires. Fedwires, once transmitted from the sending institution, take seconds to be received [3]. They're real-time gross settled [4], i.e. faster but costlier [5]; many institutions waive (i.e. eat) these fees for clients with more than ~$50,000. [1] https://en.wikipedia.org/wiki/Automated_Clearing_House https://en.wikipedia.org/wiki/Automated_Clearing_House [2] https://en.wikipedia.org/wiki/Net_settlement https://en.wikipedia.org/wiki/Net_settlement [3] https://www.federalreserve.gov/paymentsystems/fedfunds_about.htm https://www.federalreserve.gov/paymentsystems/fedfunds_about... [4] https://en.wikipedia.org/wiki/Real-time_gross_settlement https://en.wikipedia.org/wiki/Real-time_gross_settlement [5] Why? Because they're immediate and irrevocable. The first part means the bank has to use actual funds on hand, versus hoping a countervailing transfer cancels out the work or letting a profitable (relatively speaking) investment pay out. The second part means mistakes are more resource-consuming.