Time for banks to clear money

Mikeyorks

One other thought on dishonoured cheques.

I'm used to large corporate accounts with, typically, 50 - 100k cheques being paid into them daily. It's negotiable but, in such volume cases, the clearing centre will 're-present' dishonoured cheques automatically (where the reason for return is 'insufficient funds' - only). So the business only sees them on the 'second bounce' (if that happens) - and that obviously adds a few extra days.

But wholly unsure if Banks generally offer that sort of service to small business accounts - and what the default is, if they do?

Mikeyorks

boo_star wrote:

.... it will be debited immediately..... It won't be taken from your account.

So, it's not 'cleared' ! Which is what, hopefully, the discussion was about? I know that Banks do an element of pre-processing, for their own cheques, but they're not allowed to by-pass Clearing.

boo_star wrote:

If they use the same bank it's the fastest way to get a cheque paid in.

If it's the same branch it'll be a few hours.

As above - it's a pseudo transaction pending formal Clearing. And I suspect the likelihood that all the OPs creditors use the same Bank is remote? And he does imply this effect is seen for 'all bills' paid that way. From which I could only assume the transactions are conducted in such a way (e.g composite bills on the same cheque) - that the cheque is treated as drawn to cash?

regularsaver1

boo-star - this is not the same as every bank

some very old-fashioned banks do this same branch thing - most banks now you can go to any branch to do certain transactions

i remember when i was a cashier we could clear cheques straight away if same bank into certain accounts - but only if the funds are there of course