clearing cheque

  tonyq 16:24 27 Mar 2007

having just handed a cheque into the Halifax(HBOS)I was told that I would have to wait 7 working days yes 7days before I could draw the money. In this day and age of computers ect,7 days seems a long time to have to wait to clear a cheque. Can anyone tell me why it takes 7 days?.

  frostyuk 16:31 27 Mar 2007

simple put it has to go to the bank were the cheque was issued and this uses the good old post service once they have it they have to make sure the funds are their this takes time most say 3 days but it can still bounce

  johndrew 16:37 27 Mar 2007

Most banks take 7 days, some take a day or so more or less. As frostyuk says this is to allow `funds to be available` only. If you want `full` clearance quickly you have to pay.

There have been many complaints about this period of time and despite `promises` made nothing much appears to have changed. If I remember correctly, I took action in law in Sweden to resolve the issue.

  WhiteTruckMan 17:33 27 Mar 2007

that you should be able to take the cheque to the issuing bank (regardless of which branch) along with proof of identity and say pay this to my account xxxxx number, xxxxx sort code, and expect it to be available the following working day.

But thats too simple, and they would never make any money that way.


  Kate B 17:45 27 Mar 2007

Don't forget that the clearing banks make money on your money while it's in the system. That's one powerful incentive not to make transfers instant.

  Stuartli 17:52 27 Mar 2007

If you use a current account rather than a savings account at the Halifax, the cheque will be cleared in three or four days.

  Forum Editor 18:31 27 Mar 2007

on the overnight markets. That way they can make a profit on your funds while keeping you waiting. The money leaves the payer's account pretty sharpish, and then it goes off to Hong Kong, or one of the other markets for a day or so.

Everyone knows that banks could clear funds electronically in a matter of a few hours, and eventually that's the way it will end up. That situation is a way off however, and of course we'll all pay a penalty - banks have to make profits.

  octal 18:39 27 Mar 2007

A cheque may take a little while because it's got to be manually entered, but I transfered a sum of money from my PayPal account to my bank, all electronic no human intervention, I was still informed it would take 7 to 10 days. It makes me wonder if banks work on a different level of Physics than us mortals where the speed of light is 299,792,458m/s.

  Kat440 20:20 27 Mar 2007

My other half put a cheque into his current account at the halifax and was told it would take 7 days to clear(which it did), but that was because the cheque was from a building society.

  laurie53 20:24 27 Mar 2007

Some years ago, when the government started paying the armed forces by cheque the payroll was transferred to Lloyds on the last day of the month.

We never got it until the third or fourth day of the new month, sometimes even later.

Can you imaginge the interest Lloyds got on the armed forces payroll for three or four days?

Both the forces and the interest rates were a lot bigger back then too!


  IClaudio 20:25 27 Mar 2007

Although I've never been overdrawn on any account, I believe that interest is charged from the moment you go overdrawn... strange, that.

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