What Time of Day Are ACH Deposits Made?

Automated Clearing House (ACH) deposits are a common method for electronic fund transfers in the United States, used for various transactions like paychecks, government benefits, and bill payments. Understanding when these deposits are made involves knowing their processing mechanisms and financial institution practices. This article explains how ACH deposits move through the banking system, their typical timelines, and when funds become accessible.

How ACH Deposits are Processed

ACH deposits operate through a centralized electronic network that facilitates money movement between bank accounts. This network is governed by Nacha, which establishes and enforces the rules and guidelines for ACH payments. Unlike wire transfers that process individually and often in real-time, ACH transactions are processed in batches.

When an entity initiates an ACH deposit, their bank, known as the Originating Depository Financial Institution (ODFI), collects these payment instructions. The ODFI then sends these instructions, grouped into files, to an ACH Operator. The ACH Operator sorts the transactions and routes them to the appropriate Receiving Depository Financial Institutions (RDFIs). This batch processing system allows for high volume and lower costs but also means transactions are not instantaneous.

Typical ACH Deposit Timelines

The ACH network processes transactions only on business days, excluding weekends and federal holidays. Standard ACH deposits typically take one to three business days to fully process and settle.

To accommodate faster transactions, the ACH network offers Same-Day ACH processing. For same-day processing, transactions must be submitted by specific cut-off times. These deadlines typically include a morning submission around 10:30 AM Eastern Time (ET) for settlement by 1:00 PM ET, an afternoon submission by 2:45 PM ET for settlement by 5:00 PM ET, and a later cut-off around 4:45 PM ET for settlement by 6:00 PM ET. Transactions submitted after these windows may be processed as Next-Day ACH, settling on the subsequent business day.

When Funds Become Available

While ACH transactions have specific settlement times within the network, the exact moment funds become available for a customer’s use depends on the individual policies of the Receiving Depository Financial Institution (RDFI). Even after an ACH deposit has settled, the receiving bank may hold the funds for a period before releasing them. This practice is influenced by the bank’s internal risk management procedures and regulatory requirements.

Financial institutions in the United States operate under the Expedited Funds Availability Act. This regulation requires banks to make funds available to customers within specified timeframes. For electronic payments, including most ACH credits, banks are generally required to make funds available for withdrawal by the next business day after the banking day they receive the deposit. However, factors such as deposits made near or after a bank’s daily cut-off time, weekends, and federal holidays can delay availability.