Hi don't want to sound like a dummy but is there a minimum time for a cheque to clear i was always under the impression that it was a minimum of 3 working days but i wrote a cheque in a shop on the Saturday (25th) and it cleared through my account on the Tuesday (28th) can this be right?! I'm a bit guilty of writing cheques 3 days before payday, and only just made it here as pay day 28th also. Don't want to get caught out with charges etc.
Thanks
csh06

From experience different shops or company bank differently. Tesco takes 4 working days , sometimes 1 extra day . Saying that I popped into Argos 12 days ago paid by cheque as i was alo waiting for pay day and todate ( tuesday 12th ) still haven't been banked. So it all depends

Hiya

There's no simple answer.

It depends on which bank you use, and whether the person or company you give the cheque to banks with your bank, or with another.

In general cheques you pay in to your bank take 3 days to clear and the banks have until 12 the following working day to decide to bounce them if they wish, so your impression was spot on the money.

If you issue a cheque, the person might bank it immediately. If he happens to bank at the same bank and branch as you, the monies will be taken from your account right away. Sometimes if the person banks at the same bank as you in the same area, the monies can be taken the same or the next day. Or even if the shop banks elsewhere but paid in their bankings at your bank and branch, your account will take the hit on the day they bank the cheque. Sounds like this was the case here.

Bank charges are so ridiculously high, I suggest you get a small overdraft agreed wiht your bank to cover the odd slip up, or use a credit card instead and make use of the interest free period.

Hope that helps


Nandnorman

Great information, glad you mentioned all that.

Hi Csh06...

I'd like to reiterate a lot of the points above - the comments from Nandorman were spot on. In the majority of cases cheques do take three days to clear, but this is dependent on the bank you are with... and the bank of the person who's picking up the cheque. In fact LloydsTSB launched an advertising campaign earlier this year to promote the fact that they offer same day cheque clearing... which obviously works out well for the majority who pay money into their account and want instant access to their funds.

So be sure to check (no pun intended!) the terms of your bank to be on the safe side... you're certainly taking a few risks with unnecessary charges, so try and avoid that where possible - a suitable overdraft would certainly help your cause.

Paul Lucas - Rate Alert editor

Thanks everyone. I've got a overdraft already but it was used up last month on emergency dental bill :(
Will be more careful in the future.
csh06

Not as long as it does.

Hi all, I have been charged by my bank for not having funds to clear a cheque. i bought items off an ebay site and my account went 16.00 over the overdraft limit and they are charging me 28.00 pounds, i sent the cheque off 2 weeks ago and the seller sent it to the bank8 days ago, when he put it into his account for clearence should my bank not let me withdraw the value of the cheque ( i.e put a hold on that money for clearence?) i received the items from him and 6 days later the cheque cleared unknown to me that it had not already,   have i got grounds to go to the bank and explain these unusual cirumstances

I paid a cheque into my account this morning (Saturday) and was told that it would be clear by a week on Tuesday !!!

A cheque from a Royal Bank of Scotland account being paid into MY Royal Bank of Scotland account and they want six working days. Ridiculous. I would be interested to find out when exactly the money leaves the first account ..... and where does it exist before it hits mine.

To ian999

Not really an unusual circumstance - its up to your seller to cash the cheque when they feel like it and so long as it is within 6 months of the date it is written any bank will honour it. The answer is to keep a log of all cheques written out and not cashed if you are close to your overdraft limit. Or use something like paypal and fund it by debit card.