April 9, 2013
edarte, Bill & Norman1 brought up issues relating to the unpredicatability of Zag transfers under another heading. Norman1 had quoted me from a previous post, where I had speculated about Zag's system, before I had opened my acc't with them.
I've since gained a better understanding and for those of you interested, I can inform you that their system, though very peculiar, is fully automated.
Any order entered before 10pm ET, whether same-day or post-dated will post to your Zag acc't the day after the date specified, shortly after midnite ET, but dated the same day. I call that T+1. In that sense, it works the same as Peoples Trust, though in their case, it posts 1st thing in the morning, not later after midnite. If you want to transfer funds on day X, you need to specify the previous day as the transfer date.
The peculiar aspect of their system is that contrary to most, if you're transferring money in, it'll likely debit from your other FI the same day it's credited @ Zag, however, if you're transferring out, though it'll be debited from your Zag acc't on T+1, it won't post at your other FI until T+3, which means you lose 2 days int. That ties in exactly with what Bill said.
The only exception to the above is what edarte accidentally experienced, which was to request a Friday transfer. That's the only day you can transfer-out without losing a day. He specified Friday Jun3 which means T+1=Monday. His Zag acc't would've been debited Monday night and likely credited to CIBC the same day.
All this may seem convoluted and it is, but it's intended to keep the unknowing guessing while allowing them to keep your money a little longer, interest-free. It also explains why you can't link a Zag acc't externally, otherwise, there would be nothing to stop you from pulling funds out at will, without loss of interest, which would thwart their whole game plan.
Despite knowing all this, I knowingly requested a Friday transfer for a substantial sum, however, although my Zag acc't was debited on Monday, it seems they have a back-up intercept (likely for large sums), as they didn't transfer the funds on Monday. I called them on it and thru no small feat, managed to get compensated for the lost interest. It's probably no big deal for small amounts, but buyer beware - that's the name of the game @ Zag.
The only other FI I've come accros with a similar MO is Hubert. They're mostly above-board, but don't transfer large sums on a Friday - you'll lose 3 days 'cause you won't get your funds 'til Monday. They inadvertently admitted as much, but I still got compensated. At least with them, you can still pull your funds out if you can't trust them to push them out; with Zag, you're up the creek without a paddle. Personally, I don't trust an FI that doesn't do what they're asked.
February 17, 2016
February 24, 2015
April 1, 2016
April 6, 2013