Drawing on a cheque before its cleared question....

thepinklady

This month I got paid by cheque, but I am £1 from going over my overdraft. I have paid the cheque into my Barclays account on Monday 16th April, and with Barclays you are able to draw on the cheque before its cleared. If I do this, I am technically going over my overdraft until it clears on Friday, so will I get charged £30 for this, or will it see funds have been added to be account, but have not cleared yet.

Anybody able to help me as I don't want to get charged for going over my overdraft if I draw some money out.

Thanks in advance
Hayley

YorkshireBoy

From the Barclays website 'Ask a question' help files...

When can I draw against a cheque?

See our question on cheque clearance cycles.

With our Instant Access feature, you don't have to wait for the normal cheque clearing cycle to complete before you can use your money. You can start drawing against a cheque from the day it's paid in to your account (if before 3.30pm), so long as you are sure it won't bounce (subject to status and limit). There's no charge for this service.

To use this facility, you need to pay the cheque into a Barclays branch. Cash can be withdrawn instantly or spent against the uncleared cheque at any time until the cheque clears. You should only do this if you are confident the cheque won't bounce. If it does and you go overdrawn, for example, you get charged any normal account charges.

The amount you can withdraw or spend is dependent on your account and status at the time. The standard limit is for the total uncleared position - not for each cheque. These limits are as follows:

Personal current accounts: £1,000

Student and graduate current accounts: £200

Premier current accounts: £2,500

thepinklady

Thanks for your reply, I did see that on the Barclays website but I still wasn't 100% sure I wouldn't get charged for going overdrawn.

Can anybody else help????

Thanks

RayWolfe

You want more help? It couldn't be clearer!

BAILIFFCHASER

you will technically not go over your overdraft limit as you account will still be in credit until your cheque clears !!!!!

LittleVoice

You need to be confident that the cheque you paid into your account will be honoured.

If it were not honoured by the payer's bank (that is it bounced), its value would be removed from your account (which would be backdated to when you paid it in). In that case you would be charged if you went over your agreed overdraft.

If it is honoured by the payer's bank then you don't need to worry if you keep within your overdraft limit using the funds of that cheque.

thepinklady

THANKS everybody for your replies. I know, i'm a bit silly, but when it comes to banks and fees I just always like to be sure.

Thanks again :T

WhiteHorse

A bank manager told me this ...

A 'cleared' cheque is not actually a 'good' cheque. 'Cleared' simply means that it has been accepted and entered into the system. Even if money is paid out against it, that money can be claimed back if the bank decides that it doesn't like the cheque after all.

The crucial stage is when the cheque is 'given value'. That's actually when it becomes 'good'.

System

Anybody know if any other bank other than Barclays offer this? I get paid by cheque and want to move banks but cannot wait for funds to be cleared.