Wednesday, June 21, 2006

Optimizing Money Transfer Into Your Account

I ran a little experiment to determine what is the best day for transferring funds into I'm a Prosper lender who prefers not to have hundreds or thousands of dollars sitting in's 0.0% interest bearing accounts. So, I routinely do 3-5 transfers a week into my account. I look at it as just-in-time financing.

This is what I found:

(1) Transfers initiated on Sunday, Monday and Tuesday had the quickest turn-around (3 days)
(2) Transfers initiated on Thursdays had the worst turn-around (6 days) states that transfers should occur within 2-4 days of initial request. I have yet to see a 2 day transfer. I suspect that my results may be varying from others in that I use a regional bank vs. a national bank. In this respect, my regional bank may be slower than some of the major national banks that has worked with.

My recommendation to you:

(1) Use the just-in-time financing strategy (multiple transfers during the week)

(2) Establish a baseline amount equal to (1) or (2) times your normal bid. Keep this in your Prosper account at all times. This baseline amount won't collect interest, but can be immediately used to bid on those loan requests that have the "automatic funding" feature. Some of these loans are being filled in less than 3 days. I even saw a great deal yesterday (C rating @ 18% interest rate). This request was for less than $2k and actually funded in less than 4 hours after initial posting.

(3) Transfer the bulk of your funds on Tuesdays. This way the money is in your account for the weekend, a period where no new money is added to prosper lending accounts.

Summary of my results for lending transfers (your results may vary)

Transfer Initiated / Transfer Completed
Sun / Wed (3 days)
Mon / Thur (3 days)
Tue / Fri (3 days)
Wed / Mon (5 days)
Thur / Wed (6 days)
Fri / Wed (5 days)
Sat / Wed (4 days)

I have yet to see a daily deadline for balance transfers. Does anybody know whether balance transfer requests initiated after a particular time are deferred until the next business day? If so, what's the time?


Anonymous said...

Really helpful analysis, thanks!!

Anonymous said...

Really helpful analysis, thanks!

Anonymous said...

I use Wells Fargo and I always wait 4 days for Sunday, Monday, Tuesday transfers and 6 days for Thursday transfers. The "2-4 days" statement means nothing, but I have noticed that the "Estimated Completion" date/time is exactly when the transfer happens.