New bill could end long wait times for check deposits
The legislation would require banks to draw cash from check deposits of other immediately available financial transactions, including Saturdays, Sundays and holidays.
Have you ever deposited a check online or received money through services like Zelle and had to wait days for that transaction to appear in your bank account? A new bill in the US Congress could put an end to this frustration.
Maryland Senator Chris Van Hollen introduced the Accelerated Funds Availability Act on Thursday. The legislation would require banks to make money from check deposits and other financial transactions available immediately, including Saturdays, Sundays and holidays.
The bill was referred to the Banking, Housing and City Committee. An identical Democrats bill has been introduced in the House.
“Americans deserve a banking system that works for them,” Van Hollen said in a statement. “But when deposited funds are not immediately available, it costs people time and money, especially in exorbitant overdraft fees. With this legislation, we require banks to immediately make available the dollars that Americans deposit in their accounts.
According to the Consumer Financial Protection Bureau, “In 2019, banks and credit unions collected approximately $15.5 billion of their customers through overdraft fees and insufficient funds.
According to Bankrate.com, overdraft fees charged by banks typically range between $26 and $35.
By helping consumers avoid these fees, this legislation could bring about a dramatic change in personal finance.
In August, the Federal Reserve announced that it would roll out FedNow in the summer of 2023.
According to the Fed, the new system will offer real-time transactions between households, businesses and financial institutions in the United States. This immediacy will also help customers avoid unnecessary charges.
“This common sense bill will help Americans manage their money better and pave the way for the Fed’s new, faster payment system, FedNow,” Van Hollen said in a statement.
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