Bank deposit timing

Our bank's daily hours are 9 a.m. to 2 p.m. except on Friday, when the bank remains open until 8 p.m. But deposits made on Friday ater 2 p.m. are not entered until the next business day -- possibly the following Tuesday if Monday is a holiday. That means no interest is paid for 2 1/2 or 3 1/2 days. Is that legal? Anon.

Yes, and the practice is common, although the cutoff time varies. The Universal Commercial Code permits banks to cut off transactions for processing any day as long as the cutoff is no earlier than 2 p.m. Transactions are then processed the next business day with a resultant loss of interest. However, many banks open to 6 p.m. on fridays will continue to process transactions through closing time if they can get the paper work to the computer early. Later cutoffs usually apply when a branch is far from the bank's computer center.

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