Cheque Clearing Cycle

engworldcup2018

I want to open a new bond which closes on Monday. If i put in my cheque tommorow will the rate be fixed there and then when i deposit my cheque or will it be fixed when the cheque clears by which time the bonds interest rate will have changed.
Does this differ from bank to bank?

Baldur

engworldcup2018 wrote: »

If i put in my cheque tommorow will the rate be fixed there and then when i deposit my cheque or will it be fixed when the cheque clears by which time the bonds interest rate will have changed.
Does this differ from bank to bank?

It varies from institution to institution - suggest that you check the bond provider's policy in these circumstances.

engworldcup2018

I have tried can't find a definitive answer. If i go to open the bond tomorrow and i am told by the person opening the bond that the rate is fixed from when i hand over the cheque is that enough or do i need written proof or something. Where can i get a definitive answer? I just don't trust banks nowadays and do not want to be in a situation where i find out next week that my rate has dropped because of the cheque clearing issue.

Baldur

Ask for written confirmation - if they won't oblige, I would walk away and take my business elsewhere.