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Moving Your Money Faster

June 29, 2015

By Steve McHugh

Did you notice when the Federal Home Loan Bank of Boston sped up the timing for advances disbursement in April? For many advance requests, funds are now disbursed within moments of a phone call to the Money Desk or a transaction on Direct+, the Bank's online banking system.

Why is this important? Amanda Esposito, assistant vice president at Newburyport Five Cents Savings Bank, noticed that money started hitting her target account as soon as she refreshed her screen. With the money in place, she was able to plan her intraday cash requirements more easily.

"I'm more comfortable seeing the cash in place right away," Amanda says. "It's much better than checking back multiple times during the day to make sure the funds have arrived."

The rapid disbursement of advances is likely to become more important after the Fed implements changes to its Payments System Risk Policy. Beginning July 23, banks will be required to settle ACH and commercial check debits and credits multiple times every day instead of once a day by 11:00 a.m. ACH payments have increased with mobile and online banking and debit card usage. In addition, there are weekly swings based on payroll direct deposits and seasonal swings based on holidays and vacations.

"Newburyport Five can see swings of up to $2 million a day in ACH requirements," notes Ms. Esposito. The faster advance settlements "may mean we won't have to keep $2 million sitting in an account, just in case."

For more information on this new feature, or anything at the Bank, please contact your relationship manager.

Steve McHugh is vice president/relationship manager at the Federal Home Loan Bank of Boston.


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