How long does it take FOR A CHEQUE TO CLEAR?

Vita · 6 Jan 2011 at 21:18

How long does it take for a cheque to clear? I put it in on tuesday, the balance has shown in my account, but not as available balance.

It's from lloyds to hsbc, any ideas?

fiveub · 6 Jan 2011 at 21:19

5 Days I thought it was.

Shakeel · 6 Jan 2011 at 21:20

7 days i think

Stumble Bum · 6 Jan 2011 at 21:20

4 working days, I believe a working day counts as before 2pm....? That's for HSBC, it probably varies from bank to bank.

thecomputerguy · 6 Jan 2011 at 21:21

4-5 days m8

Vonhelmet · 6 Jan 2011 at 21:22

Some banks have got it down to 3 days, I think. I'd usually expect 4 at least, though.

DJMK4 · 6 Jan 2011 at 21:22

4-5 working days

Castiel · 6 Jan 2011 at 21:22

It depends, from 3 to 7 working days depending on the banks involved. Given that it is HSBC and Lloyds I would suspect 3 working days.

DJMK4 · 6 Jan 2011 at 21:23

I dont understand why it takes so long for cheques to clear, maybe I should google that when im bored

Hatter The Mad · 6 Jan 2011 at 21:24

between 3 and 7 days - ask your bank.

LSEdwards · 6 Jan 2011 at 21:25

2-4-6

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

Vonhelmet · 6 Jan 2011 at 21:26

DJMK4 said:
I dont understand why it takes so long for cheques to clear, maybe I should google that when im bored

Lots of checks to be sure the sender has the money to give, basically.

Castiel · 6 Jan 2011 at 21:30

vonhelmet said:
Lots of checks to be sure the sender has the money to give, basically.

In fact it only takes about 3 hours to clear a cheque electronically. The problem is with transferring the funds and although some countries like Sweden do this in a single day (3 hours if you pay a small fee) the UK banks subsidise free banking with the added interest they accrue.

I watched my wife transfer over a million USD (for work not personally) from Wells Fargo in the US to HSBC in the UK in less than 90 minutes (for confirmation), the funds were cleared for use in 3 hours.

The Halk · 6 Jan 2011 at 21:31

LS Ecdwards is right, it's the 2-4-6 system

2 days to clear for interest (during which interest is being earned on the other side), 4 days for withdrawal (although some banks will allow after 3) and AFTER the 6th day to know the final fate.

It moved to the 246 system in the past couple of years or so.

DJMK4 · 6 Jan 2011 at 21:31

vonhelmet said:
Lots of checks to be sure the sender has the money to give, basically.

Which takes how long :confused:

I guess its because of the delay between a cheque being written and the cheque being cashed

The Halk · 6 Jan 2011 at 21:34

Castiel said:
UK banks subsidise free banking with the added interest they accrue.

Untrue.

Castiel · 6 Jan 2011 at 21:38

The Halk said:
Untrue.

Bank interest rates they pay you and the money they earn from deposits are two different things. They may pay you interest immediately (Lloyds started this in 2003) but the money they earn from having your money is more than the interest on your account.

As you cannot draw the cash until 3 working days after deposit they are indeed earning on that deposit.

If you get my meaning.

psd99 · 6 Jan 2011 at 21:38

ah good old cheques
still like em

shame they are long

The Halk · 6 Jan 2011 at 21:44

Castiel said:
Bank interest rates they pay you and the money they earn from deposits are two different things. They may pay you interest immediately (Lloyds started this in 2003) but the money they earn from having your money is more than the interest on your account.

As you cannot draw the cash until 3 working days after deposit they are indeed earning on that deposit.

If you get my meaning.

It's 4 working days - although some will normally allow it after 3.

What you're saying now is different, and yes you are right about that. But we're still better off than other countries where the charge you a fee for the transaction then make money

Castiel · 6 Jan 2011 at 21:48

The Halk said:
It's 4 working days - although some will normally allow it after 3.

What you're saying now is different, and yes you are right about that. But we're still better off than other countries where the charge you a fee for the transaction then make money

I'm not saying anything different, I just clarified my meaning for you is all.

And you are right, it is better to wait a day or two and have free banking than in many countries which charge you a set monthly fee or a transaction fee.

However my HSBC account does charge me a monthly fee, but I get lots of perks for it.