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Question about cheques clearing.

SG27
SG27 Posts: 2,773 Forumite
in Budgeting & bank accounts
I had nothing in my current account and yesterday paid in a cheque for £200. So now my balance is £200 but as the cheque hasn't cleared my available balance just shows my overdraft. I bought something using my card last night for £30 so balance is now £170 and available shows as £30 in my overdraft.

Question is; will I be charged overdraft fees for this? Or will it be ok as my balance is in credit?

Thanks knowledgable people!

Comments

  • PeacefulWaters
    PeacefulWaters Posts: 8,495 Forumite
    Possibly.

    But as you haven't told us your bank or the specific bank account or whether you're overdraft is authorised / unauthorised there's no way anybody can tell you.
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    The cheque will be paid in tomorrow, Monday (T). It won't clear (ie affect your available balance) until Friday* (T+4). However, the value will act to reduce debit interest from Wednesday (T+2).


    In short, you're using an (agreed?) overdraft facility Monday and Tuesday this week. Which bank/specific account is it?


    * Could be Thursday with some banks.
  • dr_adidas01
    dr_adidas01 Posts: 2,158 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    As the cheque wont have cleared until friday at the latest and as we don't know what bank it is you bank with it will be hard to say if you will get charged or not.

    You are however using your overdraft at the moment which is clearly showing as you are on your online banking.

    Do you normally get charged for using your overdraft?
    Time is a path from the past to the future and back again. The present is the crossroads of both. :cool:
  • SG27
    SG27 Posts: 2,773 Forumite
    Thanks everyone.

    Sorry it's santander and the overdraft is authorised so 50p per day! I'll just transfer some money out of my ISA to cover it to be on the safe side. Don't want to be paying £3ish in charges for nothing.
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    SG27 wrote: »
    Thanks everyone.

    Sorry it's santander and the overdraft is authorised so 50p per day! I'll just transfer some money out of my ISA to cover it to be on the safe side. Don't want to be paying £3ish in charges for nothing.
    According to their website it's £1 per day. Have you negotiated special terms?
  • SG27
    SG27 Posts: 2,773 Forumite
    YorkshireBoy wrote: »
    According to their website it's £1 per day. Have you negotiated special terms?

    Wow it's doubled since I last used the overdraft! All the more reason to ensure I never go overdrawn again! Thanks
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