Same-day banking transfers on their way

  ajm 12:53 01 May 2005

click here

I thought the technology was in place to handle this. Or is another one of the banks new ploy to try to delay transfers and earn interest for themseleves

  Forum Editor 13:37 01 May 2005

but it seems to me that the banks have a vested interest in delaying clearance. On several occasions I've noticed that cheques which I've issued to people who are with the same bank as me are debited to my account on the day after the recipient deposits the cheque in his/her account, although a corresponding credit doesn't appear on their account until a couple of days after that.

Time zones being what they are, it would be very easy for the bank to lend that money 'overnight' in the Far East, and make a nice little profit. I have no idea if that's what happens, but multiply my cheque by a few hundred thousand and you have a sizeable chunk of cash floating in the air every day.

We all know that electronic transfers could be more or less instantaneous, and for people like me, who run small businesses it would be good to have 24 hour clearance on deposited cheques.

  bosmere 14:05 01 May 2005

FE my son banks with a building society and if he deposits a cheque he can't draw cash against that cheque until 7 working days later. The BS excuse is that the cheque travels back to the drawers bank and then there's a further delay in case it bounces (even for cheques like Premium Bond wins!)

*lend that money 'overnight'* - yes, you're right about that.

I do my banking on-line and I've nagged my bank for ages about why transfers take so long to get to another bank.

From account to account within the same bank the same type of transfers are instantaneous.

  g0slp 15:48 01 May 2005

Another case of 'Rip-off Britain'?

Some other countries already have much faster money transfers.

Apologies - can't remember where this came up, but perhaps another forum member saw it too.

  Sir Radfordin 16:32 01 May 2005

When I pay a cheque into my Lloyds account the money is nearly always shown on the online statement the same or next day as being available. One one occasion the cheque bounced and they then took the money back so you do need to be careful!

  spuds 17:27 01 May 2005

I believe Sweden as a 2 hour transaction procedure. The Swedish government intervened, due to many complaints similar to ours, and insisted that their banks improved on their services. By all accounts, this is what the banks did, and it as proved to be a great success. Even the banks are happy.

  Stuartli 19:46 01 May 2005

Banks have routinely made profits despositing monies from cheques being cleared and have done so for years, even though we all know it can be transferred instantly if necessary (the Halifax will do this if both parties bank with HBOS).

In March last year, the Office of Fair Trading condemned banks' widespread practice of not paying interest on transferred money until a couple of days after a standing order or cheque has left a payee's account.

Some HOBS basic services (Card Cash and Easycash) now take six working days to clear cheques yet in Sweden, Belgium, Holland and Spain cheques are cleared on the same day, whilst in France and Germany they take a day to clear.

  oresome 19:50 01 May 2005

Spare a thought for those of us who are still paid by cheque. It takes several days to clear the cheque assumimg I'm at work to receive it on time and have the spare time to pay it in within a day or two.

If I am on holiday around the month end, it can be around a fortnight before I even receive the cheque to pay into the bank.

Thank goodness for the PC and Money programme to ensure I remain in credit.

  jack 22:57 01 May 2005

Good and bad here
Modern communications not withstanding, the banks still use an independant central clearing house, where all money scripts are processed for redistribution,this is the case even 'same bank' transfers ,
It is something like there is no 'local' post any more, even if it is a card to a person in the next street, it all goes to a central sort 'n'send centre.
And it is of course true whilst money is in limbo
it 'used'

This with care can be used by the likes of us, by sending funds carefully ,so that incoming funds are there to meet a payment when it comes back in.

  josie mayhem 23:53 01 May 2005


You get paid!!

Last september the company that hubby and I work for (yep we work together and no we don't argue or get on each other nerves)changed there wages software, and it's been a complete nightmare. We are supposed to be paid monthly, but had to have two paydays the second to recify the bulls up. Can't wait until tuesday to get all our overtime, bank holidays and training pay...

And I'm hoping that I don't have to pull another stunt like I did in march.. Two attemps still didn't get all our wages, some of the money had been owing since before christmas, and we were owing just over £1000 pound in back pay (not chuffed at all) so when it didn't get paid on the second adtemp. We did ring our place of work, but our administator couldn't get through to head office by phone (weren't answering) wouldn't answer e-mails, even though they were marked urgent...

So took ourselfs off to head office (about 30 miles round trip)plonked ourselfs in reception and basicaly refused to move until it was all sorted, they tried the offer of sending us a cheque totaly refused that because it takes 10 days to clear in our account (and I was having a weeks hoilday) remined them that because I've have a bacs agreement with the company the could transfer straight into my account. With some haggling they agreed, but couldn't be done until the morning. I left head-office with a little threat, that if it wasn't sittting in my account by tuesday dinner time, we would be back but this time with the local newspaper intow (we work for a care company, so any negitives the papers jump on it) but it did work...

Down side, my little threat caused a bit of a storm, and even the managering director got to now about it. Hauled over the coals by my manager when I returned from my holiday... and if I ever to it again then I will be facing disaplinary action... I hope I get the rest of my wages on tuesday.... or prehaps this time I might just down tools and tell my manager that I shall take the time of instead of being paid my back pay owing eh eh

  jack 08:21 02 May 2005

Josie Mayhem say's because of her actions would be diciplined if a re occurance.
What about the cuase of the discumforture?
No disicplining there then?

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