Originally Posted by
anduril462
The term for the funds during this period where neither sender or receiver having the money is "float" or "floating". That is, between the money leaving your account and arriving at the destination, it is "floating" around somewhere in the bank, and the bank is allowed to use that floating money how they want (within legal limits). This probably boils down to some kind of short term investments and the like, so the sending and receiving banks make money off of you for a day or two.