Why does it take 8 days for a cheque to clear at the same bank? - HotUKDeals
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Why does it take 8 days for a cheque to clear at the same bank?

Hotscotsman Avatar
9y, 1m agoPosted 9 years, 1 month ago
I have been using Halifax for 14 months to pay a paycheque in a lot.

Normally it clears right away as the company uses the same bank, has a Halifax current account and its the same branch.

So why has this month when I took in cheque yesterday and I pay cheque in the receipt says it wont clear until next Friday!

I ask and they say its the regular 8 days.

This is confusing
Hotscotsman Avatar
9y, 1m agoPosted 9 years, 1 month ago
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banned#1
it takes 5 full working days, so it should have cleared and ready to spend by the 6th working day which is next friday
banned#2
Only happens because the banks are greedy! There is no excuse other than this. Otherwise, are they going to try to say the money vanishes for that period of time. Its the same when 2 banks are involved, but same bank, they are just being rediculous.
#3
takes my bank 8 days too.
#4
guv
Only happens because the banks are greedy! There is no excuse other than this. Otherwise, are they going to try to say the money vanishes for that period of time. Its the same when 2 banks are involved, but same bank, they are just being rediculous.



How would they gain anything? The amount doesn't come out of the bank until it clears does it?
#5
Benjimoron
How would they gain anything? The amount doesn't come out of the bank until it clears does it?


They gain the interest that money would accrue over the 8 days.

It's not much on each individual transaction but it's adds up to a lot when all the transactions at that bank are taken into consideration.
#6
Actually, you can't spend funds after 5 working days, as that can still bounce.

I once sold loads of items on ebay and one customers cheque cleared after 5 days, so I sent out the product, then I noticed money had been deducted from the account, which I thought was strange, so I quired it.

The bank told me that the cheque takes 5 days to clear but it can still bounce in reality, you should wait 10 days for the funds to be available, as the 5 days is just to check they have the funds available to transfer or something.

I don't know why it should take so long to get all that information, when you consider how advanced everything is now.
#7
It takes this long because they hold back your money for it's interest value. It's the price you pay for free banking services.
#8
barneydog
They gain the interest that money would accrue over the 8 days.

It's not much on each individual transaction but it's adds up to a lot when all the transactions at that bank are taken into consideration.



I understand that, but my point was about it being the same bank. The funds transfer within like a day when the cheque clears doesn't it? Or are there several days in between when the money comes out of the first account and into the second account. Obviously if this isn't the case then there would be no benefit when transferring to and from the same bank (as I said!)

Obviously when seperate banks are involved, the bank losing the money would hold onto it for as long as possible.
banned#9
Benjimoron
How would they gain anything? The amount doesn't come out of the bank until it clears does it?


It comes out as soon as its presented. It just doesnt magic its way over to the new account until they feel like it.

For small amounts, it may not be a great deal of interest, but add up the total number and its huge sums of money. I'd certainly not be unhappy at being a quid behind that level of unjustified interest.
#10
It says 8 days or whatever but usually it does it quite quick. I put a cheque in on a monday and by wednesday it was in my account, so i think they just say 8 days as a precautionary measure
banned#11
Actually a cheque usually clears after 5 working days. However it is possible that you can withdraw funds from this cheque clearing, and up to 14 days after it can bounce!!!
#12
guv
It comes out as soon as its presented. It just doesnt magic its way over to the new account until they feel like it.

For small amounts, it may not be a great deal of interest, but add up the total number and its huge sums of money. I'd certainly not be unhappy at being a quid behind that level of unjustified interest.



I've never known a cheque come out of my account until pretty much when it clears at the other end. I've never seen one come out of my account and then not go into the other person's account for another 5 days. It always seems to come out of my account on the same day that it goes into theirs (or maybe the day before). Must just be me being stupid!
#13
I once read that cheques can still bounce a few months later despite appearing to have cleared.
#14
Money Spinning
I once read that cheques can still bounce a few months later despite appearing to have cleared.



That's foreign cheques isn't it??
#15
Checked today still waiting for it to clear

Beyond a joke, I know its digital but how can changing money from one account to another both at same branch take 8 days, is it couriered by snails or something

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