A further clarification to the previous clarification...

A house cheque is paid in at the drawer's branch - i.e. the branch where the account issuing the cheque is held. The beneficiary only needs to have an account with the same bank, not necessarily at the same branch. In this case you have a house cheque which will clear on the same day. Bear in mind that many banks now have what's known as clustered branches - your branch is determined by your "sort code" - the 6 digit number (3 sets of 2, hyphenated) displayed at the top of your cheques etc. So it may be that a cheque could be considered as a "house" cheque even if paid in at a different location, if the branch you pay the cheque in at is part of the same cluster as the issuer's branch.

Secondly - there are now clear agreements on clearing. The "2-4-6" rule states that, for "away" cheques you will earn interest 2 days after deposit, can withdraw funds 4 days after deposit and the cheque cannot bounce 6 days after you deposit it.

See here: http://www.bba.org.uk/content/1/c6/01/15/79/APACS_consumer_cheque_leaflet.pdf

So, logically, if someone pays your cheque in on Monday and they can earn interest on Wednesday, the funds must leave your account on the Tuesday at the latest.

Just to clarify the above statement. 'In House' means it has to be not only the same bank but the same branch of that bank.

For example, you bank with HSBC NewTown branch and the payee also banks with HSBC NewTown branch. If the payee presents the cheque at that branch it will leave your account overnight - it is what as known as a 'house cheque'. Now even if they bank with HSBC NewTown branch, if they bank that cheque at any other HSBC branch the funds will leave your account at the end of the next working day, ie 24 hours later.

Just to muddy the waters if they bank that cheque at HSBC NewTown branch, even if their account is at another HSBC branch, it will debit your account overnight - it is still considered a house cheque, ie one presented at the issuing branch.

If they bank with any institution other than HSBC, the cheque will leave your account at the end of the next working day.

It all depends on which bank. If it is the same as yours and is "in house" then it can go out the same day as they bank it. If not, it usually leaves your account the next day from them banking the cheque, although they wont receive the cleared funds for usually 3 working days.

Hope this helps

Hi,

I've paid someone a cheque and was wondering how long it takes to clear (go out of my bank?)