- August 31, 2009 • Posted by Michael Ferrari
- Reduced ACH Transfer Times!
-
Great news! SmartyPig ACH transfer times reduced!
ACH transfer times have been a hot topic both on this blog and on Get Satisfaction. When customers transfer money from their existing checking or savings account to SmartyPig, they want that money to clear into their SmartyPig account and begin earning interest as quickly as possible. We get it.
Our existing three day ACH transfer time is well within the industry standard of two to four days. In fact, according to the Wall Street Journal, "Bank of America Corp. says such transfers typically take two to three days. EmigrantDirect says on its Web site that transfers take two to four days, while HSBC Direct says customers should expect transfers to take up to three days." But being in the middle of the pack didn't sit right with us. We knew that driving that transfer time down was important for our customers. And, we've said all along that this would be something that SmartyPig would look to improve upon as the company grew.
Now, I'm happy to tell you all that our ACH transfer times have been reduced from three business days to two business days, putting us on par with the likes of ING Direct.
How did we do it?
We spent the last three months building our own proprietary transaction engine. We took out the middleman and saved you a day in the process. We said we would do it, and we did.Why did we do it?
Because we knew it was important.So, cheers everyone! Here's to getting that extra day back! (Don't you wish we could do the same for DMV and doctor's office visits?!)
Mike Ferrari, co-founder
@mferrari
@smartypig- smartypig
•
transfer times
24 Comments | | - smartypig
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24 Comments
I'm still dumbfounded that in 2009 transferring money isn't instant. (Perhaps a good topic for a future blog post.) However, this is more of an industry problem, not specific to Smarty Pig. I commend Mike and the team for doing everything they can within the system to make ACH transfers quicker.
Another reason I continue to keep my money with Smarty Pig!
Love it! Thanks for the great work, guys!
THAT IS AWESOME!!!! Thanks guys
That's great news! That was seriously my only complaint thus far with my SmartyPig account. I love it.
I agree Aaron. It's a very good step in the right direction, but I still don't see the practical reason why ACH transfers aren't instant.
Good news. Now how about a bump of interest rates ?
Wouldn't it be nice to be at the top again ?
http://www.money-rates.com/savings.htm
:-)
Great job. I'm sticking with you guy. A bump in the interest rate to make us at the top would probably significantly increase you deposits. I know I would give you free word of mouth advertising.
Joint or POD accouts would put the icing on the cake.
Thanks for listening!!!!!
Good News! I didn't think it was that slow before, but I'm glad to hear you're still hard at work over there.
I just requested an ACH transfer and was told 5-7 business days! Not impressed!
Great to see improvements in clearing times. To those interested in why ACH isn't instantaneous, the system was designed to be a low cost, "store and forward" system. Low costs = higher APY's. Credit and debit cards are faster but much higher costs. Just ask any merchant.
Keep up the good work.
Much appreciated :) keep up the good work.
2 days is great but, have the transfer time out of SmartyPig been reduced too? This is my greatest complaint with SmartyPig.. that it takes 5-7 business days to get your money out. Why would getting your money in be any different than getting your money out. It seems unfair that money in is 2 days and money out is 5-7 days.
Paola,
Great point. That has been reduced as well. You can close a goal 3 business days after your last transaction has cleared. Once you close your goal to ACH, you will have your funds in 2 business days. The 3 day hold is for security reasons to ensure the funds have properly settled before returning to you. That hold will not go away.
Thank you.
Mike Ferrari, co-founder
Keep up the great work guys! I have tripled the amount of my savings in 7 months compared to when it was in a normal bank account. DON'T MAKE IT TOO EASY TO GET THE MONEY :) (But 2-3 days is nice)
I've only been a member for about a month, but I have to say that I'm truly impressed by the responsiveness of management and Mr. Ferrari in particular. Some member comments can get a little ascerbic, but I think the general customer is very happy with the GREAT SERVICE SmartyPig has provided. I know am. Hope everyone has a great Labor Day weekend!
Thanks for keeping us informed and continuing to "strive for excellence", Mike!! Glad you hear us!!
Great work guys, I know creating an ACH system is not for the faint of heart, but I'm glad you tackled this issue so that I can get my money into my goal and earning interest even faster. Keep up the good work, I look forward to what is coming next!
I continue to be impressed by your progress with the site and the amount you listen to the users. I have seen some of the responses after your posts about lowering APR and it's unfortunate... I am glad you guys are able not to take the whiners personally and continue to build a great product. I had to learn that the hard way too... there are always an outspoken minority who seem to think they are entitled to everything without the need to sacrifice anything, all for free. It's good to check yourself with their opinions to keep yourself grounded from time to time, but obviously they will never be satisfied. Just know, your wonderful attention to this site IS satisfying the majority of the users, myself particularly included! :)
"The 3 day hold is for security reasons to ensure the funds have properly settled before returning to you."
Can you explain this in a bit more detail, Michael? Being new to the whole online banking concept, this isn't a restriction I'm used to from my brick and mortar banks. Much thanks for your time.
Where am I seeing this reduction in times? Money was transferred out of checking into smartypig on 9/14, but I can't close the goal until 9/18? That's 5 days...
I would like to increase my amount from $140 to $200.Do you automatic do this or do I have to clear with the bank of the west? Thank you. Ralph
Great job. I just opened an account with Discover card transfered $25k over said it would take 3 day. They removed the gund from my bank the very first day, but per Discover I won't see them in my Discover bank fro 3-5 days, what a ripe.
You guys are going in the right direction. The only problem that still conserns me is the POD/ Joint accout situation. Change that and I your for a long time (as long as you rate are good LOL)
all good things
Great job on the ACH transfer. I just made my first ACH transfer since I started in Aug/Sept. From the day I initiated the transfer it took 3 days, but the day the money left my one account it was in my Smarty Pig account the very same day.
Now if we can only do something about joint accounts and POD.
And please don't lower your interest rates.