US Banking
Federal Reserve Wire Network
Fedwire (the Federal Reserve Wire Network) is a real-time gross settlement (RTGS) system operated by the Federal Reserve Banks of the United States. It is the primary system for high-value, time-critical domestic wire transfers between US financial institutions. Fedwire processes over $4 trillion in transactions on a typical business day.
Each participating bank holds a reserve account at its Federal Reserve district bank. When a Fedwire transfer is initiated, the Fed immediately debits the sender's reserve account and credits the receiver's reserve account, providing final and irrevocable settlement in real time. Transfers are identified by the sender's and receiver's routing numbers. Fedwire operates weekdays from 9:00 PM ET (previous day) to 7:00 PM ET, with a maintenance window overnight.
Fedwire is the fastest way to move large sums of money within the US, with settlement finality in minutes rather than the hours or days required by ACH. It is commonly used for real estate closings, securities settlements, and interbank transfers where same-day certainty is essential. The trade-off is higher fees, typically ranging from $20 to $30 per transfer.
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