A way of getting cheques cleared quicker ?

[RogerS]

Got a cheque from a client yesterday drawn on a NatWest account. Paid it into my Lloyds account which means that it has to go through the cheque clearing process which, as we all know, takes a fair few days (while the bank hangs onto our dosh).

I asked the Lloyds assistant how quickly would it have gone into my account if the cheque had been drawn on a Lloyds account and was told that if funds were available then instantly.

Which got me thinking. I do have an old NatWest account and so if I'd thought a bit more about it, could have toddled down to the NatWest branch and deposited the cheque there. Now no reason to assume that the same principle won't apply for NatWet (ie if funds are available then the cash goes straight into my account then and there). So then use the smartphone, open up internet banking, transfer funds from NatWest to Lloyds and in the time it takes to open up the Lloyds online banking website, voila, the money is there. Within minutes.

So maybe worth keeping that NatWest account open and opening an account with Barclays and HSBC?

 

[Lons]

:lol: :lol:
Interesting thought!
Dealing with just one bank is more than enough for me!
I try to get all my customers to pay by transfer if possible otherwise cash if I can 'cos getting to a bank is a pita

Bob

 

[RogerS]

One advantage of the separate NatWest account is that I use it as my PayPal account. Minimal money kept inside it so PayPal can't go raiding.

 

[MMUK]

I thought regulation had changed a few years ago so that a cheque could now take no longer than 3 working days to clear. It was to stop the banks making huge profits on our money. Considering that all banks are interlinked these days and they get the money within hours of the cheque being deposited.....

 

[nev]

I thought you could pay a fee for a speedier clearance or is that no longer the case?

 

[RogerS]

I thought regulation had changed a few years ago so that a cheque could now take no longer than 3 working days to clear. It was to stop the banks making huge profits on our money. Considering that all banks are interlinked these days and they get the money within hours of the cheque being deposited.....

Not quite.

Cheques go through a clearing process so the amount you pay in may not be available to use straight-away.
The clearing cycle means that when you pay in a sterling cheque from another bank in the UK, the Isle of Man, Gibraltar or Channel Islands (the paying bank) into your personal account with us:
i. wewillshowthechequeinyouraccountonthe same day that we receive it;
ii. from the second working day after we receive it, we start paying any interest on the cheque if your current account pays interest (or using it to reduce the interest you pay);
iii. from the fourth working day after we receive it, the funds are available for you to use but the cheque may still be returned unpaid up until the sixth working day after we receive it; and
iv. from the end of the sixth working day after we receive it, if the cheque is returned unpaid by the paying bank, we cannot take money from your account without your consent unless you have acted fraudulently.
So, for example, if you pay in a non-Lloyds Bank cheque on a Monday, you will see it on your account the same day, it counts towards any interest on Wednesday, you can use the money on Friday and we cannot take the payment out of your account after thefollowingTuesday.

I thought you could pay a fee for a speedier clearance or is that no longer the case?

£10

 

[Mike.S]

+1 for what Roger said.

Unfortunately, you cannot rely on what bank staff tell you - many are ill-trained (I speak as an ex-banker and Financial Ombudsman Service worker).

Note that in the example given, if you pay in on a Monday then you cannot be sure the cheque is paid until a week on Wednesday i.e. " we cannot take the payment out of your account after thefollowingTuesday".

The 'special presentation' service will speed up the knowledge of whether the cheque will be paid but may not quicken the speed with which cleared funds are available.