Breaking News
Investing Pro 0
Cyber Monday Extended SALE: Up to 60% OFF InvestingPro+ CLAIM OFFER

Biggest Banks Plan to Distribute Stimulus Payments on Wednesday

Economy Mar 16, 2021 11:18AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Bloomberg. Building are seen reflected on the exterior of a Bank of America Corp. branch in New York, U.S., on Monday, Jan. 15, 2018. Bank of America Corp. is scheduled to release earnings figures on January 17.
 
BAC
-2.87%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
JPM
-1.40%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
WFC
-2.25%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
GDOT
-0.44%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

(Bloomberg) -- The biggest U.S. banks will start distributing stimulus money to eligible Americans on Wednesday morning, following some confusion over when the third round of pandemic transfers would be made available.

The banks won’t officially receive any of the cash until 8:30 a.m. in New York on Wednesday, a time selected by the Internal Revenue Service, according to Nacha, the organization governing the ACH Network payment system. Banks and credit unions must make the funds available to U.S. account holders by 9 a.m. local time that morning under Nacha rules, the group said in a statement.

Some consternation arose over timing of the payments after the federal government announced it would begin the process of sending Americans their $1,400 checks on March 12. After Wells Fargo (NYSE:WFC) & Co., JPMorgan Chase & Co. (NYSE:JPM) and Bank of America Corp (NYSE:BAC). told their customers they wouldn’t receive their stimulus money until this week, consumers flooded social media with complaints. But banks were quick to note they haven’t been given the money yet.

“When we receive the money from the IRS on Wednesday, we will immediately deposit it into our customers’ accounts,” Amy Bonitatibus, a spokeswoman for JPMorgan, said in an emailed statement.

Wells Fargo will provide payments to its customers as soon as possible, and is not holding the funds, spokesman Jim Seitz said in an emailed statement. The lender has also noted that the U.S. Treasury has said it will distribute payments in multiple phases, meaning not everyone will receive their money at the same time.

‘No Mystery’

Nacha clarified on Monday that the federal government began sending payment files on Friday and that banks won’t receive any of the money until 8:30 a.m. on Wednesday, as per instructions from the IRS.

“This is literally the moment in time when the money will be transferred from the government to banks’ and credit unions’ settlement accounts at the Federal Reserve,” Nacha said in a statement. “There is no mystery where the money is from the time the first payment file was transmitted on Friday, March 12, to when all recipients will have access to the money on Wednesday — it is still with the government.”

Nacha noted that the ACH Network is capable of clearing and settling payments as soon as the same day in which the files are sent. The group said it’s up to the sender -- in this case the IRS -- to determine when it wants the money to be made available to consumers.

Still, some banks and financial-technology companies began depositing funds into consumers’ accounts as soon as they received word from the IRS that their customers would be eligible for the latest round of stimulus.

Green Dot (NYSE:GDOT) Corp., the country’s largest provider of prepaid cards, said it had deposited close to $2.6 billion in stimulus payments to eligible customers by noon on Monday.

“We aren’t waiting for the funds from the IRS to settle before depositing them into customers’ accounts,” said Dan Henry, chief executive officer of Green Dot. “This approach comes at a cost, but we believe it’s the right thing to do for our customers, and we’re prepared and proud to do it.”

©2021 Bloomberg L.P.

Biggest Banks Plan to Distribute Stimulus Payments on Wednesday
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
The king TD David
the2775kingTD Mar 16, 2021 4:40PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Free money is dangerous
Alan Rice
Alan Rice Mar 16, 2021 4:40PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Money is not dangerous.People are.
Felipe Daniel
Felipe Daniel Mar 16, 2021 11:27AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Hunter Biden still on crack
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email