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A Note From Natalie:

The days of waiting…well…days for your money to transfer may be over. On July 20, the Federal Reserve’s real-time payments system, the FedNow Service, launched and banks now have the option to participate and make transactions nearly instantaneous. 

What does this mean for you? If your bank participates in FedNow, you’ll immediately receive your paycheck. For people on a budget, faster access to your money may mean avoiding late payment fees and a whole Rube Goldberg effect on your finances. And if you own a business, you’ll be able to get payments as soon as they’re paid.

If you have any news tips, story ideas or questions, reply to this email.

Have a beautiful day!

Natalie

Natalie Campisi

Senior Staff Writer

Consumer Finance

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.

The Fed Is Rewiring The U.S. Payments System—What That Means For You 

While FedNow is not the first real-time payments service in the U.S., it will broaden access to instant payments nationwide. The new system will be online 24/7, processing transactions as they happen. Now, financial institutions using FedNow can provide immediate end-to-end payments to customers. Before the change, transactions could take days to complete.

FedNow will launch in phases. The first phase began last week, starting with baseline functionality like bill pay and account-to-account transfers. Thirty-five banks and credit unions, including JPMorgan Chase and Wells Fargo, are implementing the service, according to the Federal Reserve.

For people currently using third-party payment apps, FedNow offers a money-saving opportunity. Both Venmo and PayPal charge a 1.75% fee (a minimum fee of $0.25 and a maximum fee of $25 is deducted from the transfer amount for each transfer) for users to instantly transfer their in-app balances, and the funds generally arrive in their bank accounts within 30 minutes. Using FedNow will not only mean that consumers can access their funds immediately, but the convenience will be totally free.

Here’s what else you should know
this week:

Taxed For Benefits You Never Received? You May Be A Victim Of Identity Theft And Fraud 

Billions of dollars have been looted from unemployment benefit funds. Everyone from state employees to prisoners and international crime rings have been caught defrauding the government with fake claims, using stolen identities to pull off the scheme. Here’s what you should do if you get calls or mail about unemployment benefits you didn’t apply for.

Highest-Yielding Savings Accounts Now Fetching More Than 5%

Rates on high-yield savings accounts continue to climb, with some banks now offering yields of 5% or more—usually a rarity. The high savings account returns even compete with some of the best CD rates being offered.

Will Your New Landlord Charge A ‘January Fee’? Zillow, Other Rental Sites Promise To Let You Know Up Front 

Zillow, Apartments.com and AffordableHousing.com will now publish the true cost of rent—including hidden fees that can unpleasantly surprise you when you sit down to sign the lease agreement.

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