Finance Quick Answers
I rolled over an IRA from my bank in February to a mutual fund. The forms were sent overnight to the bank, but it took 2 months for the bank to produce the check. This delay cost me over $300 in market appreciation. In numerous other transfers it never took more than ten days to complete the transaction. When banks delay, are they breaking the law?
"Sorry," reports Jane Bryant Quinn," no law tells banks how fast to act." Mutual funds have to process transactions the day they are received. Normally banks take no longer than two weeks to process requests. Transfers from stock brokers can take up to three weeks. If moved electronically, transfers from mutual funds can move in four days. Our suggestion is to check into the transaction if it hasn’t been completed within three weeks.
Sandra McKinnon, Consumer & Family Economics Specialist, University of Missouri Extension
Cynthia E. Crawford, Ph.D., Consumer & Family Economics Specialist, University of Missouri Extension
Last update: Monday, July 14, 2008