Demise of the ‘float’

Thursday morning I wrote a check for $1,975.00 to one of my sub-contractors from my business account held by RBC Centura.  My sub-contractor deposited the check into his Bank of America account around noon on the same day.

Early Friday morning I went into my Centura account to make sure I had enough money to meet payroll and found my balance to be somewhat lacking from where I thought it should be.  This was due to the fact that my check to the subcontractor had already been deducted from my account and picture of it was available for my online viewing pleasure.

There was a time… say a week ago… when you could enjoy a 24 hour ‘float’ between the time you issued a check from one banking institution until it would be processed by another before being deducted from your account.  But they’ll be no more of that.  The ‘float time’ for hand-written checks is now down to a few hours instead of days.

Deposits between banks, however, can still regularly take several days to appear in your checking account.

Banks suck.

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2 Comments

  1. Posted October 7, 2006 at 1:15 pm | Permalink

    You know I agree with “banks suck”. If I didn’t run a business, I’d be a cash and carry kind of guy. I have no need for institutions who make money off my money and then charge me to do it when ever they can.

  2. Posted October 10, 2006 at 6:49 pm | Permalink

    David,
    I think your distress here is over the fact that banks have a charter which allows them to kite checks, whereas you have to rely on the good graces of your bank and its technological capability – or lack thereof.