Three days to clear funds? I remember when banks,

Three days to clear funds? I remember when banks, and I'm sure some still do, would put a hold on deposits. These holds were between three to seven days.

Way back in the dark ages, the federal reserve started the automated clearing house and guaranteed check clearing by midnight of the transaction day as long as the bank met their deadline. If the FED did not clear as promised, the FED would "carry the float" meaning they would provide a no-interest loan to the bank where they failed to properly clear on time.

What the bank did with your "held" deposits was to loan that money out and make interest on it. In effect (and they still do this), they take an interest free loan from their customers. They also do this with your demand account deposits as they are only required to keep a very small percent of cash on hand to cover demand withdrawals. Suffice to say, if you are paying for banking services, you are being cheated. They are already making plenty off of your deposits.

This is the 21st Century. If your broker is making you wait three days for your funds to clear (they have them in 24 hours or less), you are being cheated. They are using your money during the time they are making you wait for your funds to clear. PLUS, they are charging you for every transaction you make. Now, a brokerage fee is one thing, its up front and declared. But, three days to clear funds, that just plain cheating. It is not necessary in the 21st century.

I'm only responsible for what I say, not for what you understand.