Clearing cheques

Touchdown69

Hi

Can anybody tell me how long a personal cheque will take to clear. A colleague of mine (with HSBC) is giving me a cheque for £10k tonight which I am putting into my Lloyds TSB account tomorrow morning (Friday August 5th). I need this cheque to have cleared by next Thursday (Thursday August 11th). Will it be cleared by then ? If not, is there anything I can do to clear it quicker ? I know that years ago it used to be 5 working days to clear cheques, is this still the case ?

Azrael_1701

Touchdown69 wrote: »

Hi

Can anybody tell me how long a personal cheque will take to clear. A colleague of mine (with HSBC) is giving me a cheque for £10k tonight which I am putting into my Lloyds TSB account tomorrow morning (Friday August 5th). I need this cheque to have cleared by next Thursday (Thursday August 11th). Will it be cleared by then ? If not, is there anything I can do to clear it quicker ? I know that years ago it used to be 5 working days to clear cheques, is this still the case ?

It works on a 2-4-6 business day cycle.

After 2 business days the money can start earning/reducing interest.

After 4, the funds are available for you to withdraw/spend.

And after 6, certainty of fate(COF) occurs (ie. the cheque is fully clear).

Be aware that between the funds being available on day 4, and COF on day 6, the cheque can still bounce, and if it does you may incur interest/charges if you have withdrawn the funds.

alanq

Assuming a cheque is paid into a current account (savings accounts may take longer) it should be available to draw on Day 4. Friday (if paid in early enough in the day) will count as Day 0. So the following Thursday should be OK. Note however that the cheque could still bounce up to Day 6 (the 6th BANKING day) . So don't hand over anything in exchange for the cheque until Day 6 has passed unless you trust the payer.

http://www.chequeandcredit.co.uk/information/-/page/the_cheque_clearing_cycle/

Touchdown69

Thanks for your replies. I'm not worried about the cheque bouncing, I know the person has the money. The person is lending me the cash for me to pay for something and I have to have the cash available Thurdsay. If I put the cheque in first thing in the morning then I am hoping that it will be good to take out Thursday. Is there any way I can make thius quicker by payment of some sort of fee ?

david39

It used to be (in days of yore, as it were) that if you pay the cheque into your account, but over the counter at the branch of the bank on which the cheque is drawn, then the cheque is cleared by the issuing bank that day, thereby saving 2 days on the process.

This may have altered in these more modern electronic times and, also, the issuing bank may make a charge if you are not one of their customers.

I do know that if your bank and that of your colleague are the same, then the cash usually appears on your account immediately you pay it over the counter and shows as funds available.

This happened to me with a LloydsTSB cheque when I paid it into my own Lloyds account - when I got home, the credit was showing online and I was surprised to see that my funds-available figure had increased by that amount.

ERICS_MUM

Touchdown69 wrote: »

Thanks for your replies. I'm not worried about the cheque bouncing, I know the person has the money. The person is lending me the cash for me to pay for something and I have to have the cash available Thurdsay. If I put the cheque in first thing in the morning then I am hoping that it will be good to take out Thursday. Is there any way I can make thius quicker by payment of some sort of fee ?

Could your friend pay you via on-line banking ? I think that if payment were made today it would be cleared on your account next Tues. If faster pay can be used it will be on the account the same day.

jonesMUFCforever

Touchdown69 wrote: »

Thanks for your replies. I'm not worried about the cheque bouncing, I know the person has the money. The person is lending me the cash for me to pay for something and I have to have the cash available Thurdsay. If I put the cheque in first thing in the morning then I am hoping that it will be good to take out Thursday. Is there any way I can make thius quicker by payment of some sort of fee ?

As long as you pay the cheque in TOMORROW Friday you will be able to withdraw the cash next Thursday - provided you can explain why you are getting £10k from a mate.
If not the HO may block your account and the branch will not be able to overrule this.