You may have seen a new groundbreaking financial tool mentioned in the news recently – FedNow from the Federal Reserve.
Launched on July 20, 2023, the instant payment system will be available to banks and credit unions and is expected to revolutionize traditional methods of money transfers. With FedNow, individuals and businesses can finalize payments or conduct transfers during weekends, holidays, and outside standard banking hours.
This isn’t something you could historically do with typical online transfers, like those done through the Automated Clearing House Network (ACH). ACH transactions are processed in groups and usually take one to three business days to finish. With FedNow, you’ll never have to worry about banking hours again.
That said, here are two things to note about the Fed’s new payment system:
- FedNow uses the same top-tier security technology as the Real-Time Payments (RTP) system, ranking it among the world’s most secure payment systems.
- FedNow isn’t a digital currency and won’t replace apps like Venmo or Cash App. Instead, it will work alongside them, making your banking and mortgage transactions as smooth and efficient as your favorite payment apps.
Your financial well-being is our top priority, so if you have any questions about FedNow or anything else related, please reach out. That’s why we are here.
The Trademark Capital® Team
This material is intended for informational purposes only and should not be construed as legal, accounting, tax, investment, or other professional advice. Trademark Capital®’s investment strategies are built using quantitative, proprietary algorithms that are designed to identify and react to changing market conditions. However, investors should be aware that no investment strategy or risk management technique can guarantee returns or eliminate risk in any given market environment. As with all investments, Trademark Capital® Management’s investment strategies are subject to risk and may lose money. The investment strategies presented are not appropriate for every investor and individual clients should review with their financial advisors the terms and conditions and risk involved with specific products or services. Due to our active risk management, our managed portfolios may underperform during bull markets. Past performance is no guarantee of future results.