Cheque Clearing - Question

steve821

Can anyone out there tell me before I go mad, why does it take the Halifax 3 days to clear a cheque in my current account and 7 days into my savings account?
Am I to sceptical when I think it is possibly them holding my money to gain interest on for 3 days. Work in out how many cheques are cleared in a day and the possible interest?
Any reasonable answers gratfully recieved.
Steve

noh

Interest is paid on the cheque amount after 2 working days.
6 days is the period of time after which a cheque is fully cleared and cannot be recalled.

All this is available to read in your account terms and conditions on the Halifax web site.

opinions4u

steve821 wrote: »

Can anyone out there tell me before I go mad, why does it take the Halifax 3 days to clear a cheque in my current account and 7 days into my savings account?
Am I to sceptical when I think it is possibly them holding my money to gain interest on for 3 days. Work in out how many cheques are cleared in a day and the possible interest?
Any reasonable answers gratfully recieved.
Steve

Different regulations apply to current accounts and savings accounts - Halifax comply with what they have to comply with.

First of all, they will be paying you interest due from the second day, even though the funds are probably still held by the drawers' bank at this stage. So it's not an income generating exercise.

Secondly, there is a risk on current accounts that between day 4 (when you can withdraw) and day 6 (when the cheque will be honoured) the cheque can bounce. If you've spent the money you're still liable. But this doesn't happen on savings accounts because they don't let you to withdraw the funds in that period.

If you want to draw the money faster, pay it in to a current account. If you want to save the money, pay it in to a savings account.