question about cheques
- Thread starter DannyW
- Start date
it's worth checking with your bank, some will make the funds availble almost immediately, others will let it tick over for anything up to a few days. Worth checking your banks T&Cs on cheques, especially if you withdraw, the money hasn't gone in and you become overdrawn - you will get charged for it!
There is no such thing as "special clearance". You are referring to "special presentation". All this means is your cheque will forgo the normal DSC clearing process and be sent via royal mail to the account holding branch of the other cheque.
The following day, assuming it has reached the branch, your bank will ring up and ask if the cheque is "good". i.e., are the funds there and is it likely to be paid.
The other branch will say "yes" or "no" and based on this and your account history, your branch may then let you withdraw funds based on that cheque clearing.
However, the cheque could still bounce as between the branch saying it is fine and the actual day it clears, the account holder could clear out his account.
Its a pointless exercise tbh
The following day, assuming it has reached the branch, your bank will ring up and ask if the cheque is "good". i.e., are the funds there and is it likely to be paid.
The other branch will say "yes" or "no" and based on this and your account history, your branch may then let you withdraw funds based on that cheque clearing.
However, the cheque could still bounce as between the branch saying it is fine and the actual day it clears, the account holder could clear out his account.
Its a pointless exercise tbh
Ask him/her to do a bank transfer instead (the paid-for variety, which is instant). Special presentation is pretty pointless for reasons given above.
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If it's simply to avoid paying charges for going into/above your overdraft, HSBC for example will normally not charge you as long as you have enough funds including the uncleared cheque to remain above limit. So, for example:
Monday - You're £50 above your overdraft limit, and you put in £100 in cheques (making it £50 in available balance, and £150 above limit in nominal balance)
Tuesday - an £100 item of Direct Debit leaves the account. Now, your available balance is -£50 because the cheque hasn't cleared, but your nominal balance is still £50 above limit. In this scenario, from my personal experience (many, many times), HSBC will not charge you for going over limit because you still have nominal balance remaining, even though your available balance is over limit.
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If it's simply to avoid paying charges for going into/above your overdraft, HSBC for example will normally not charge you as long as you have enough funds including the uncleared cheque to remain above limit. So, for example:
Monday - You're £50 above your overdraft limit, and you put in £100 in cheques (making it £50 in available balance, and £150 above limit in nominal balance)
Tuesday - an £100 item of Direct Debit leaves the account. Now, your available balance is -£50 because the cheque hasn't cleared, but your nominal balance is still £50 above limit. In this scenario, from my personal experience (many, many times), HSBC will not charge you for going over limit because you still have nominal balance remaining, even though your available balance is over limit.