I was referring to cheques. On the same day, I deposit a cheque from whomever and write out another cheque for the same amount. The money from the cheque I have deposited is not immediately accessible to me from my account because it is being held somewhere. However, on the same day, when I write a cheque, the institution charges me interest because the money is not yet available. The institution, however, still has not transferred my money to the other party. Yet the bank has the money. Why is it charging me interest in this type of situation?
On March 22nd, 2007. See this statement in context.