About Me

organizing your personal finances to find extra money

Sometimes financial problems can be solved relatively easily. I was struggling to make it from week to week until I learned that some financial organization could change my spending habits. If you can organize your personal finances, you will see exactly where all of your hard earned money goes. You will be shocked to see how much the morning coffee and donuts cost you each month. This blog will provide you with information that can help you get your personal finances organized so that you don't have to continue struggling from paycheck to paycheck throughout each and every month this year.

organizing your personal finances to find extra money

The Federal Reserve Is Working On Plans To Improve The Speed And Safety Of The Banking Industry

by Clémence Moulin

Online banking is becoming a very popular service to people today, and approximately 69 million Americans currently use it for their banking needs. One of the few downsides of online banking is the problem with the length of time it can take for transactions to clear. This is a problem for customers, businesses, and banks, but the Federal Reserve is currently finding ways to improve the speed of this system.

Why Is This A Problem?

When people use their debit cards and write checks, the transactions are all processed through the Automated Clearing House (ACH). While most of these transactions go through quickly, they do not always occur in real time. This can present a problem for consumers because their account balances online are not always accurate. There might be transactions that have not yet cleared, and this can lead to overdrafts on the account.

For businesses and banks, this is also a problem, but it affects them in different ways. Businesses, for example, might not get the payments right away from the transactions of their customers. Banks can also be affected, because they might not get the money right away from the transactions that occur.

If all transactions from checks and debit cards were in real time, everyone involved would benefit from this.

What Is The Federal Reserve Planning On Doing?

The Federal Reserve is the organization responsible for the banking system, and they understand the problems this issue can cause. Because of this, they are working on implementing plans to speed up the way the system works.

In the 1970s and 1980s, the Federal Reserve worked rigorously on reducing the float time of checks, and they were very successful. This process continued throughout the 1990s too, and it greatly improved partly due to the decrease in the number of checks people wrote.

The plans the Federal Reserve are creating are designed to not only speed up the system, but to also ensure higher safety standards in this industry. There are five main plans they have designed, but each will take time and a lot of money to implement.  

If they are successful with these plans, you might see a difference in the way transactions are processed in the near future.

Personal banking is a need of most Americans, and knowing the U.S. banking system is safe and efficient is important. If you are interested in learning more about this or signing up for online banking, contact a bank in your area.