Post dated cheques question

lil_miss_2

Hi,

Can somebody explain the cheque clearing procedure for post dated cheques please. I am wondering if I pay a bill with a post dated cheque, will the money be taken from my account the day the cheque is dated, or will it begin the clearing process on that date, i.e. the money taken from my account another 3/4 working days later?

Hope that makes sense
Thank you

Bossyboots

Post dating a cheque is pointless unless you know it is not going to be banked. It is also against the terms and conditions of most bank accounts.

If someone receives a post dated cheque they can bank it straightaway as once you write the cheque you are promising to pay and you must not write a cheque unless you have the funds to pay it.

Therefore, if you post date a cheque which is then paid straight it, it will be treated as np differently than any other cheque and processed straightaway.

hum_lovely

It depends where and how you pay it. If you pay it at the bank or post office the clearing process will start straight away, that is assuming the cashier does not notice it is post dated. If they notice they are likely to tell you to come back and pay when it is the date on the cheque! I used to work nin a bank, admittedly a few years ago but that is my understanding.

Are you trying to eek out a few days more interest before paying a bill? Personally I weigh up whether it is cheaper to pay for a stamp to pay a bill by post, allowing the 7 days or whatever to get to the company, or have the money in my account a little longer (sometimes waiting until wages go in), or use the telephone banking system which obviously costs but means you can keep your money in your account until pretty much the day bill is due.

What do other MSErs do?

homersimpson_3

bossyboots is spot on. you should never write post dated cheques- if you don't have money in account and the cheque is cashed you could end up paying bank charges. not worth the risk. always pay bills by direct debit leaving a few days for salary etc to clear just in case of any problems and always have emergency fund/free overdraft you can use just in case problems with salary not being credited to account

lil_miss_2

Thank you for the above posts.

I actually didn't have enough funds in the account to pay a bill, but I knew my salary was going to be paid in soon. I wanted to make sure I remembered to pay the bill by getting the cheque into the bank, but have them cash it after the salary went in. (Thinking about it now, this would make the clearing process even more complicated than it already is!)

I have only recently got a credit card, the reason why i didnt get one a long time ago was because i knew i'd have trouble remembering to pay it! Maybe DD is a better way to go, as suggested.

Gorgeous_George

I always ask for an overdraft facility to ensure DDs and SOs will be honoured. Great if you can avoid the temptatioon to spend the overdraft as if it was your money.



GG

Raksha

I use ebanking to ensure bills are paid when I get the bill, but ebanking has a facility to nominate the date the payment is made, so I date it for 4 days or so before the payment is due.

BaileyB

Quick question - how long do cheques last for? Just found a cheque that is a year old and i lost it?

hum_lovely

My understanding is that cheques are valid for 6 months from the date they were written. Unless the cashier at the bank you are paying it into notices or the person who wrote the cheque raises objections, you should be alright and personally I would go ahead and pay it in. (If it is for a large amount it might be nice to tell the person who wrote it in case it will put them overdrawn if they thought you had already presented it.;) )

Wyndham

There have been several other posts on the forum from people who work in bansks who say that only cheques over a certain amount (and I think it was quite large) are checked at all these days, so you could have an unsigned cheque that goes through! So the date is unlikely to be checked on a post dated cheque, and you could end up in a mess.

In terms of how long they are valid, I understood it was six months as well, but it may vary from bank to bank.

oldwiring

Custome has always been that a cheque is out of date six months after date of issue, but with the risk assessed situation that now is the rule it is unlikely that the date would be spotted. However the chances that the drawer has put a stop on is increased IMO. Quasi cheques like warrents often become out of date, if I recall correctly, much earlier than cheques, and the issuer's procedures will most likely result in them being refused when presented at its bank.