Can I write a cheque to fund another account from the same bank?

captainspaulding

Hi peeps.

Oh dear. Yes, another noob. And it's one of them that just appear from nowhere and ask random stupid questions because they're in a flap

I know I'm not the first to come to you good kind people with a 'I'm in a bit of a situation'-type dilemma, and I hope someone out there can be lenient on a first-timer nincompoop so that I might stay and become...an experienced nincompoop :rotfl:

In short...yes, I'm in a bit of a dilemma... Payday on Thursday...not a bean until then...some pretty important things to get paid before then. Yes, not exactly anything new I know.

There's so much background to my current circumstances (as with everyone's) that explaining it all is for a later date (and I do hope to set up my DFD in March - watch this space!)
The real solutions to my problem can only be long term I know, but when we find ourselves in a short term bind, it can be hard to see past.

So to cut a long story short, I had an idea to remedy my current cashflow probs. It's probs up there with submarines made out of sponge. I don't want to consider payday loans etc. but I've completely burnt my bridges in terms of overdraft facilities, CC etc.

*He now finally gets 'round to asking his question*...I was wondering if anyone with banking experience, or who knew the ins and outs of how cheques work, could shed some light on the following?

I have two current accounts with the same bank (Lloyds TSB). Both have next to no funds atm, although on Thursday my wages will be being paid into account "A".

I do however need money to cover a couple of pretty important things but am stony broke. It's a case, therefore, of how to get money together until then.

From experience, I've found that whenever I cash a cheque that's come from another Lloyds account, the money is immediately available when I deposit it (not just showing in my account, but there to withdraw).

I was therefore wondering whether I could write a cheque from account 'A' over to account 'B' in order to transfer 'funds' and get some money today?

As far as I'm aware, writing a cheque to myself is an accepted way of transferring funds between accounts. If I had £100 in account A then, and wrote myself a cheque for that amount to account B, £100 would show up in my second account instantly.

But...since I don't have any funds in account A, I was wondering whether anyone knew whether the cheque (were I to try and pay it into account would:

A) Simply bounce - meaning no money gets into account B, and account A is hit with a bounced cheque charge
Go through, meaning account B gets the proceeds of the cheque immediately, and also that the funds are taken out of account A immediately, obviously meaning unplanned overdraft charges would be applicable. (Account A no longer has a cheque guarantee card attached to it, as the debit card is new...don't know if this changes the circumstances at all?)
C) Be 'honoured' by the bank, meaning it funds account B immediately before the process to extract the money from account B is compelted.

Very dubious about (C) being the case, as theoretically I could write myself a cheque for £1 million from account A, empty account 'B' and be off to the Maldives in a matter of minutes!

So I guess it's a case of the status of cheque 'guarantees' these days since last Summer. (Once or twice in the past I did cash a personal cheque from a cheque cashing place, but am guessing I now can't do this?)

Right, I'm kind of at the end now. I'm sorry for being so long-winded, babbling on uncontrollably. If anyone has any thoughts, please shout.

Thank you!

captainspaulding

Oh blimey, that is long. I'm sorry!

pmduk

I strongly suspect option A is the most likely.

System

Followed up by the bank investigating fraud?

Mikeyorks

Unusual that you get cleared funds immediately in a Lloyds account? However - it's not going to work.

For it to succeed you have to pay it directly into your account at Lloyds. As both accounts are with Lloyds then it will be treated as a 'house' cheque and cleared within Lloyds (without going through UK Clearing) overnight. Resulting in no cleared funds on the deposit account - and the likelihood of a fee on the account drawn from.

captainspaulding

Oh dear. I think I'm getting some 'don't try it' vibes here. Thanks for your replies.

Does anyone know if any of these cash chequing places will still cash a cheque without me having a cheque guarantee card?

pmduk

I doubt it, at the very last resort you could try raising cash on a possession at cash convertors or even a payday loan. But these are very last resorts.

GlamGirlie

A) The cheque would still take 4 days to clear so you wouldn't achieve anything. 'House' cheques are generally not processed overnight anymore.
Writing a cheque knowing you do not have the funds to cover it is actually illegal - Cheques Act, 1986
C) The bank's systems would detect this as cross-firing and would most likely investigate you for money laundering.

Don't do it!

jonesMUFCforever

OP for your idea to work you will need funds in both account A and B.
Otherwise 2 things will happen - the cashier will refuse the cheque telling you about insufficent funds to meet it and/or the cheque will go through clearings meaning account B will have a credit showing on it but as uncleared funds.

The cheque guarantee scheme has now finished so nobody has a cheque guarantee card anymore.

IsabellaG

Can you not transfer money online from account A to account B. I know that you can do it with Nat West

Mikeyorks

IsabellaG wrote: »

Can you not transfer money online from account A to account B. I know that you can do it with Nat West

Indeed Lloyds let you do that. But only where there is money in account A.

As there are no funds in either account ..... that is the reason for the enquiry?