Cheque clearing period

FLAPJACK

Hi All,

This afternoon I gave a cheque to a building society in order to open a fixed rate bond.

At the moment the sum on the cheque is in a savings account with my bank which I can transfer to my current account online.

My question is when should I transfer the funds to the current account i.e when will the sum on the cheque need to be in the account ready to leave?

I'm thinking maybe 3 days?

It's just that i am going away at the end of the week and didn't want a largish sum sitting in the current account making little interest for days before it needs to be in the account.

I was going to ask this question while I was in the branch but it slipped my mind and now it's too late to phone.

Thanks.

agrinnall

I'm afraid it's six days if the cheque has been paid into a savings account (four to a current account) - see here http://www.chequeandcredit.co.uk/cheque_and_credit_clearing/cheque_clearing_timescales_%282-4-6%29/

FLAPJACK

Thanks agrinnall,

So with the weekend included It maybe next Thursday then, I wonder if the building society will credit the bond with interest from today?

Thanks also for the link....an interesting site.

Cheers

Valli

so you have written a cheque to open a savings bond but, as yet, the funds are NOT in the account on which the cheque is drawn but in a related savings account?

If that is indeed the case I suggest you transfer the money from the savings account into the current account straight away! You are playing a dangerous game here; the cheque could bounce and you would be liable to charges if so.

I think Agrinnall's post assumes you want to draw on the cheque you have written. Don't leave it a week!

opinions4u

If you've drawn the cheque today it's more than possible that the current account will be debited first think on Friday.

So get that current account funded today or tomorrow.

£1,000 at 3.65% is worth 8p a day in interest to a basic rate taxpayer.

jonesMUFCforever

It would help if you told us who the bond is with and who the cheque is drawn on?

Why you may ask - well if your building society use one of the mainstream banks to process cheques the cheque could come out of your account tomorrrow!

FLAPJACK

Cheers everyone....in order to have a good nights sleep the money is in the current account as I write this.

Certainly do not want to draw on the cheque, just want to forget about it for 3 years.


Thanks again all.

realaledrinker

jonesMUFCforever wrote: »

Why you may ask - well if your building society use one of the mainstream banks to process cheques the cheque could come out of your account tomorrrow!

Don't see how that is possible as the clearing cycle for cheques via BACS is 2 working days (e.g. deposit Mon, clears Wed)?

agrinnall

Valli wrote: »

I think Agrinnall's post assumes you want to draw on the cheque you have written. Don't leave it a week!

Yes, that'll teach me to skim read the OP! At least it gave me the incentive to find a website I hadn't come across before, that may prove useful in the future.

pingu

october last year i put a cheque(£21000.00+) in nationwide from rbs thursday afternoon checked account friday and money was in nationwide mortgage account from rbs:eek:

i was surprised too but its true

FLAPJACK

Just an update!

The sum left my current account this morning! Thank you all for putting me to the wise .....saved a lot of egg on face!

I suppose I could put it down to not being used to dealing with cheques anymore...

Cheers