Bank accounts that let you draw against uncleared cheques? (UK)

TopKiddy

So recently I've been getting a lot of cheques from an online company in which I do a bit of work for, referring customers. The Cheques are normally around 150 pounds but can be anything upto 3-400, Every couple of months.

I'm fed up of waiting 10 Days for the Cheque to clear, is there any banks that allow you to draw against a cheque as soon as you bank it? And you can still earn interest off them as soon as they are banked?

Cheers, Benny!

virgin_moneysaver

7 full working days for a cq to clear - day 1 credited to yr acc, day 3 starts earning interest, day 5 can withdraw funds from ATM at yr discretion, if the cq is returned & debiited to acc yr liable for any o/d & fees, day 7 close of business is when it no longer can be returned on yr acc - bit ironic that a 21C on-line company chooses an outdated method of paying you

Paul_Herring

TopKiddy wrote: »

is there any banks that allow you to draw against a cheque as soon as you bank it?

No.

But then again, all banks should be allowing you to draw on them from the 4th working day (which is 6 days at most on most weeks of the year.)

Can't you get this company to pay you via BACS?

CLAPTON

barclays claim, subject to conditions and status, that they will allow you to withdraw against uncleared cheques

rb10

TopKiddy wrote: »

is there any banks that allow you to draw against a cheque as soon as you bank it?

Some banks (definitely Halifax, possibly Lloyds TSB and Barclays too) will count a cheque as available for overdraft interest/fee charging purposes as soon as it's paid in.

E.g. you have £0 in your account, and pay in a cheque for £100. Provided you have an arranged overdraft, you can then withdraw (say) £50. Whilst you'd be technically overdrawn, Halifax certainly wouldn't charge you anything for this.

As I say, I can't say for sure that any other banks work like this, but I think that Lloyds TSB and Barclays do.

You just need to have an arranged overdraft in place to be able to do this.

But as Paul said - see if they can pay you by BACS. This will be cleared funds as soon as it arrives in your account.

grizzly1911

No.

As others have said you may be able to find some that will do it if they consider you are credit worthy or you dip into an agreed overdraft facility.

The bank itself (unless it is the same one) technically doesn't get the cash until working day three. additional delays are because they are classed as uncleared effects for fate. i.e. your bank doesn't know if the companies bank are going to honour the cheque as the company don't have the money or perhaps they may have stopped the cheque or there may be a technicality, such as not signed/out of date.

So if your bank do let you have the money early they may charge you interest/fees for doing it and they may come knocking on your door if the cheque isn't honoured.

I know some will do it to attract savings accounts as a USP.