How does ACH actually move money between US bank accounts?
ACH is a batch messaging network. Banks send credit and debit files to an operator, which sorts them and settles by moving the banks' own balances.
How bank transfers, funds, and tax rules actually work in the US.
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How does paycheck withholding actually work?
Form W-4 instructs payroll. Publication 15-T supplies the tables. Withholding is an estimate. Form 1040 reconciles it against the year's tax.
What is the difference between a money market fund and a high-yield savings account?
A high-yield savings account is an insured bank deposit. A money market fund is SEC-regulated mutual fund shares, not a money-market account.
How does FedNow actually differ from ACH?
ACH batches credits and debits on banking days. FedNow settles one instant credit 24/7, only between banks that have signed up.
What is the difference between a US tax credit and a tax deduction?
A tax credit subtracts from the tax itself. A tax deduction subtracts from the income the tax is calculated on. Same dollars, different lines.
How does an index fund actually own the stocks in an index?
An index is a list. An index fund is a pooled company that buys some or all of the securities on that list. You own shares of the fund, not the index.
How does ACH actually move money between US bank accounts?
ACH is a batch messaging network. Banks send credit and debit files to an operator, which sorts them and settles by moving the banks' own balances.