We have changed our privacy policy. In addition, we use cookies on our website for various purposes. By continuing on our website, you consent to our use of cookies. You can learn about our practices by reading our privacy policy.


Day Cycle

Categories: Banking, Accounting

Ever wonder why a wire transfer or a check deposit has to be made before 1:00 pm EST in order for it to be credited that day? It’s because the "Day Cycle" for banks and financial institutions is from 8:00 am to 1:00pm EST. This is the time frame for the Automatic Clearing House (ACH) in the US to handle payments, transfers, and all types of credit and debit information electronically, tracking all details and corresponding sender and receiver information, ostensibly for the IRS and Treasury Dept.

And no, it’s not the same as a spin cycle class during the day.

Find other enlightening terms in Shmoop Finance Genius Bar(f)