Bank clearing times

Sallyannlo

Does anyone know anything about how long it should take a bank to clear a cheque? Am I right in thinking in Scotland it has to be done in 3 working days?
The reason I ask is that my bank has just charged me £75 for honouring 3 payments when there were "insufficient funds in the account". The statement I looked at showed I was in credit, but they tell me that two cheques I paid in did not clear until the following day, (they were paid in on Saturday and didn't clear until Thursday).
I find it quite amazing that when I transfer moeny to pay my credit card bill the money leaves the bank and is credited to the credit card in 3 working days, yet somehow the bank needs four days to clear a cheque!

I am, of course going after the bank for my money back, but I thought if I knew about the clearing system I might have a bit more to throw at them in my letter.
Thanks
Sallyann

Crabman

Sallyannlo wrote:

Does anyone know anything about how long it should take a bank to clear a cheque? Am I right in thinking in Scotland it has to be done in 3 working days?
The reason I ask is that my bank has just charged me £75 for honouring 3 payments when there were "insufficient funds in the account". The statement I looked at showed I was in credit, but they tell me that two cheques I paid in did not clear until the following day, (they were paid in on Saturday and didn't clear until Thursday).
I find it quite amazing that when I transfer moeny to pay my credit card bill the money leaves the bank and is credited to the credit card in 3 working days, yet somehow the bank needs four days to clear a cheque!

I am, of course going after the bank for my money back, but I thought if I knew about the clearing system I might have a bit more to throw at them in my letter.
Thanks
Sallyann

The banks like to make their profit - think about all the money from each cheque that they can use in the overnight markets... how do ya think HSBC made over £6bn profit? :rolleyes:

Go get your charges back and good luck

grumbler

This can be slightly different for different banks/BSs and even for different types of accounts within one bank/BS. This example is for Nationwide. You should check with your own bank. Also being in credit doesn't mean that funds are available for spending. You should wait until funds are shown as available.

BTW, you don't like the bank charging you for honouring payments when there were insufficient funds in your account . Do you prefer these payments to be bonced?:think:

Crabman

grumbler wrote:

This can be slightly different for different banks/BSs and even for different types of accounts within one bank/BS. This example is for Nationwide. You should check with your own bank. Also being in credit doesn't mean that funds are available for spending. You should wait until funds are shown as available.

BTW, you don't like the bank charging you for honouring payments when there were insufficient funds in your account . Do you prefer these payments to be bonced?:think:

Personally I'd prefer them to be bounced than get charged these extortionate fees...

regularsaver1

but then the dd firms can charge for missed payments

if the cheque was paid in on a saturday - that is not a working day so would not count. so took Monday, tuesday, wednesday and cleared on Thursday - not bad, considering funds should be cleared 2 days before a DD to ensure all is paid well

most banks tell you when it will clear - ie on receipt, or cashier, or ATM

Sallyannlo

But how long, in the days of modern technology SHOULD it take them to clear?

GSD4ME

This is a MAJOR complaint of mine. In the 1960s, when I first started a bank account it took THREE days to clear a cheque and now that we have the internet, computers, satellites, etc. etc. it somehow takes FOUR or even, in the case of Lloyds FIVE days. I think it is absolutely scandalous.

The British Bankers Association says, on its website that it should take THREE days and they explain how the money moves along the system in that time, but the banks want to screw even more money out of their customers so they add on extra days to suit themselves and then have the absolute bl**dy cheek to charge you for unpaid DDs or for going overdrawn while they are dragging their feet clearing the money.

In my opinion when you have paid the cheque into the account or made an internet transfer, you have done your bit and if the bank takes an unconscionable amount of time to clear the money that is THEIR fault and they should not charge you for it.