2007-01-24 22:00:58 · 7 answers · asked by Ace 2 in Business & Finance ➔ Other - Business & Finance
I'm afraid so - although this is going back 10 years to A-Level Economics. If I remember correctly in the 2 days or so between a cheque leaving an account and going into another account there are various short term markets. I'm pretty sure that you only get a tiny - tiny % return, but imagine how much money a bank like Barclays processes in a year - hundreds of millions. You don't need a big % to still generate profit for the banks.
Thats why it still takes a couple of days to do an electronic transfer - even though its instantaneous!
2007-01-24 22:20:48 · answer #1 · answered by Simon C 3 · 0⤊ 0⤋
There are two processes involved in the clearing: one if for the actual transfer of the funds to be effected. The other is a waiting period in which the issuer of the cheque can issue a stop check order.
The first part constitutes float, in the second part the money has already been transferred into the beneficiary's account.
2007-01-25 01:50:06 · answer #2 · answered by Piet Strydom 3 · 0⤊ 0⤋
The money is still in your account until the check clears.
2007-01-24 22:08:31 · answer #3 · answered by crazydave 7 · 0⤊ 0⤋
This is what is commonly referred to as "float" and yes the banking system makes money on the money!
2007-01-24 22:09:02 · answer #4 · answered by Anonymous · 0⤊ 0⤋
i don't know who has it but yes they do earn interest on it which is why it takes so lonbg for cheques to clear in this country
2007-01-24 22:05:13 · answer #5 · answered by missree 5 · 0⤊ 0⤋
The banks, and they do get interest on it.
2007-01-24 22:06:42 · answer #6 · answered by SOL SIREN 2 · 0⤊ 0⤋
the banks, and they make money ALL the time, b*st@rds
2007-01-24 22:08:46 · answer #7 · answered by bee bee 6 · 0⤊ 0⤋