When money is transferred to bank from someone, where does it go for 4 days and who is getting the interest?
Question by Pushpangadan: When money is transferred to bank from someone, where does it go for 4 days and who is getting the interest?
Money can’t be accessed by the person who transferred the money or by the person money went to. Where is it?
Best answer:
Answer by src50
You mean a hold is put on funds availability? It will ultimately be credited to your account effective on the date of deposit, but it won’t be “available” until the waiting period has passed.
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This is one of the ridiculous things of the banking system. In this day and age when everything is computerized there is no need to have the transferred money “disappear” in the banking system. But it still does somehow and the banks are getting away with it.
The banks actually keep the money in a transfer account. The sum of it all is called the “float” and an important contributor to a bank’s profit. This scheme allows the banks to always sit on a good amount of money for which they do not have to pay any interest at all. Nice, isn’t it?