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Lloyds treatment of cheques
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Milarky
Posts: 6,356 Forumite
Does anyone with a Lloyds current account plus (4.25%) use theirs to pay in cheques drawn against another current account?
At the moment LTSB gives interest from the date of receipt - and personal cheques take two days (that's working days) to be presented at the other end.
So you could pay in £999 on Friday at Lloyds (the limit they pay interest on is £1000 per day paid in) and wait until the following Tuesday (4 days) before needing to cover this from your other account (assuming it is linked to a higher interest savings account and you can transfer the amount straight in.)
It's an obvious dodge - so I wondered (not having the LTSB current account) if anyone has taken to using it?
At the moment LTSB gives interest from the date of receipt - and personal cheques take two days (that's working days) to be presented at the other end.
So you could pay in £999 on Friday at Lloyds (the limit they pay interest on is £1000 per day paid in) and wait until the following Tuesday (4 days) before needing to cover this from your other account (assuming it is linked to a higher interest savings account and you can transfer the amount straight in.)
It's an obvious dodge - so I wondered (not having the LTSB current account) if anyone has taken to using it?
.....under construction.... COVID is a [discontinued] scam
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By my reckoning, that would be a gain of about 23p each time, less than 19p after tax.
It would take you a long time, hundreds of transfers of cheques, and a very large starting balance in the original account before you made anything useful from it.
But good luck with it ;-)0 -
If you have 2 personal accounts with LTSB the cheque is debited (and therefore credited to the other account) instantly.0
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Hence the idea of using at least one non-LTSB account to pay in from - using the weekend plus the two days presentation required. Can the funds thus deposited be transferred instantly to a higher paying account (eg LTSB online saver) or must they sit in the current account until normally 'cleared'? I could whisk it straight to Egg savings if it were 'available' as well as simply paying interest....If you have 2 personal accounts with LTSB the cheque is debited (and therefore credited to the other account) instantly.
(Agree with Biggles' estimate of 19p per cheque x 52 per annum btw).....under construction.... COVID is a [discontinued] scam0 -
No. Only cleared funds can be transferred instantly.0
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Hence the idea of using at least one non-LTSB account to pay in from - using the weekend plus the two days presentation required. Can the funds thus deposited be transferred instantly to a higher paying account (eg LTSB online saver) or must they sit in the current account until normally 'cleared'? I could whisk it straight to Egg savings if it were 'available' as well as simply paying interest....
(Agree with Biggles' estimate of 19p per cheque x 52 per annum btw)
Hello Milarky,
I don't think you can play this trick
I once checked after paying in a big cheque. It showed on my online screen the BALANCE that included the new paid-in cheque. But when I checked on ATM screen one or two days after, it showed AVAILABLE fund that DID NOT include such amount and hence I could not get anything near to my daily withdrawal limit (I did have only less than 100 quids before depositing the cheque).
So I think if you arrange an online transfer, you are likely to be hit with a bank charge for going over your available fund at the time of transferring, or in a better scenario, interest charge for overdraft, if you have such facility.
Anyone has any different experience?0
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