Cheque clearance delays.

H

happywriter

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Apr 25, 2009
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Cheques in UK banks often take 7 working days to clear. The money is debited quickly from the payers account, only cleared into the payees account after 7 days. During that time the money exists, it is earning interest for the banks - even though it is not their money. Banks consider it a bonus, as electronic transfers are done instantaneously.
In Europe most countries have clearance times of 3 working days. Yet another instance when the government would rather not act to ensure citizens are not stolen from.
 
H

happywriter

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Apr 25, 2009
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It would be nice to know when that happens. As with many bank charges, these are charges and conditions which are unilaterally set by the banks, often without any justification based on reality apart from purely a profit motive.
Getting back to the basic idea that the banks have their clients' money with which they can gain profit would be a reasonable concept. Other services could be thought of as just that - services to their clients - not only pure profit from a captive client.
 
Chutzpah

Chutzpah

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Jan 9, 2009
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With smile (who don't have branches), if I pay cash into the Post Office it is shown in my account the same day.

My wife, who banks with Barclays, has to wait three days if she pays cash in to her account... despite it going straight into their safe!
 
W

Witch consumer

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Sep 8, 2008
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Debtors retreat
This all goes back to the days when all payments had to physically go through clearing banks before payment could be made either in or out, and being the age I am, I can clearly remember when cheques used to take 3 daye delays to clear both ways, paid in and out the same day. Obviously with the dawning of computers, this delay was seen as a big advantage to banks as all payments (even cheques) are now instant but like you say, the clearing period brings profit. All companies take advantage of this, the clearing period of 3 days when you make any payment, be it to a credit card, utility company or catalogue is absolute bunkum (what a reserved word for me)

However if Barclays are holding onto cash for 3 days they want reporting, no bank I have ever used (and that is most of them excluding Barclays) holds onto cash, its always paid in directly (unless at another bank) I'd be writing and asking why they need to hoard your cash for 3 days!! as if they don't rip us off enough.

I think the bank clearing period is 5 working days, most manage it in 3 but you have to avoid paying in after Wednesday for it to work well.
 
H

happywriter

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Apr 25, 2009
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Banks gain over non-working days also.

As with many items, the banks set their own rules. Clients have to pay and obey. There are many bank charges which cannot be justified in any way, e.g. telegraphic transfers, etc.
The banks are careful to say that the clearance period is counted in working days. Carefully forgetting that money also earns interest during holidays and weekends.
 
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