Which bank clears cheques the fastest?

laurel7172

Is banking at the same bank as his employer an option?

Nothanks

Some slightly inaccurate info in here. Some natwest customers, let me clarify.

Cheque clearing cycle : transaction day (t) before 3:30, your cheque is paid in. T+2(working days), funds show on account, start earning you interest, t+ 4 funds available to withdraw at your own risk, t+6 (after 3.30) funds FULLY cleared.

This means if you take out the cash on t+ 5, but then the drawing bank cancels the cheque, the funds will leave your account again.

Cheques from the same branch (not bank, but branch) do not go through clearing.
I believe this is standardised across other banks too.

If you do decide to open account at same branch as employer, might be worth not advertising that fact, while your intentions are honest, opening an account to beat the clearing cycle is a huge red flag for money laundering, and the advisor can decline the account outright.

jen245

When I pay a cheque into Natwest, the cheque shows on my account immediately, although only on account balance not available, and it shows straight away, on my online statement as a deposit. After 2 working days the money is showing on my available balance, and I can, and have withdrawn it.

rb10

Nothanks wrote: »

Some slightly inaccurate info in here. Some natwest customers, let me clarify.

Cheque clearing cycle : transaction day (t) before 3:30, your cheque is paid in. T+2(working days), funds show on account, start earning you interest, t+ 4 funds available to withdraw at your own risk, t+6 (after 3.30) funds FULLY cleared.

This is what a Natwest advisor told me when I paid a cheque in to my (otherwise unused) Natwest account recently. However, I could withdraw the cheque after two working days.

Nothanks wrote: »

Cheques from the same branch (not bank, but branch) do not go through clearing.
I believe this is standardised across other banks too.

No it's not standard - for Halifax, for the cheque to avoid going through clearing the requirement is just that it's from the same bank; it doesn't matter what branch the account was opened at.

Comyface

rb10 wrote: »

No it's not standard - for Halifax, for the cheque to avoid going through clearing the requirement is just that it's from the same bank; it doesn't matter what branch the account was opened at.

Hi rb10

Will this still be the case after Halifax transfer over to LLoyds systems? Thanks

rb10

Comyface wrote: »

Hi rb10

Will this still be the case after Halifax transfer over to LLoyds systems? Thanks

I believe so.

In fact, I think it'll actually be better, as they will automatically allow you to draw on all Halifax cheques automatically (at the moment you have to take the cheque to the cashier and request it - those that are paid in through the machine will go through the clearing cycle).

stclair

Nothanks wrote: »

Some slightly inaccurate info in here. Some natwest customers, let me clarify.

Cheque clearing cycle : transaction day (t) before 3:30, your cheque is paid in. T+2(working days), funds show on account, start earning you interest, t+ 4 funds available to withdraw at your own risk, t+6 (after 3.30) funds FULLY cleared.

This means if you take out the cash on t+ 5, but then the drawing bank cancels the cheque, the funds will leave your account again.

Cheques from the same branch (not bank, but branch) do not go through clearing.
I believe this is standardised across other banks too.

If you do decide to open account at same branch as employer, might be worth not advertising that fact, while your intentions are honest, opening an account to beat the clearing cycle is a huge red flag for money laundering, and the advisor can decline the account outright.

http://www.natwest.com/personal/current-accounts/g4/cheques/clearing.ashx

Normally companies such as recruitment agencies will have an agreement with the bank to cash there employees cheques without them being paid into an account nor going through the clearing proccess.

Nothanks

Hmmm, obviously some differences i wasn't aware of. Thanks guys. The timescale i gave was accurate for my own bank, thought
It was pretty much standard.

Tom_builder

Bubbapudd wrote: »

Barclays allow you to take money out on the same day you put it in. My husband also gets paid weekly by cheque.

So whot happens if the cheque bounces, you would go over drawn if there was only the amount from the cheque in Ur account that they snatch back.

rb10

Tom_builder wrote: »

So whot happens if the cheque bounces, you would go over drawn if there was only the amount from the cheque in Ur account that they snatch back.

Yes, that's correct.

Cheque bounces -> You go overdrawn -> Bank charges you, and you pay the money back.

However, that is the same with all banks. The maximum permitted timescale for cheques paid in to current accounts is four working days, but the cheque can still bounce at any point until the end of the sixth working day. So there are still two working days, plus weekends, when you can withdraw money, only for the cheque to bounce at a later point.