Posting cheques for deposit to Barclays... Hmmm.

[heresmo]

I'd say "Don't". I've learned today that cheques whether received at your branch or direct to Leicester are then sent to a processing centre and can take up to five days to be entered onto one's acount, then the five-day clearing for fait would start. Hrmphh!

They naturally can't say if there might have been a delay in receipt vis a vis the Post Office. How convenient.

Regards

Mo

[Tom_vRS]

Ta for the heads up.

I've had similar problems with Alliance and Leicester. Fair enough they are a building society and not a clearing bank, but 7 days to clear a bankers draft is still unacceptable imho :thumbdwn:

[ap0gee1978]

Ta for the heads up.

I've had similar problems with Alliance and Leicester. Fair enough they are a building society and not a clearing bank, but 7 days to clear a bankers draft is still unacceptable imho :thumbdwn:

I thought the point of a banker's draft was that it was good for the value shown, and so would be credited immediately rather than waiting to make sure the funds are available in the account that a cheque comes from. Sounds like a pretty poor excuse to me...

[Tom_vRS]

I thought the point of a banker's draft was that it was good for the value shown, and so would be credited immediately rather than waiting to make sure the funds are available in the account that a cheque comes from. Sounds like a pretty poor excuse to me...

Yep thats what I thought. But only works with BANKS, and alas A&L is not a bank.

[heresmo]

I'm not sure about Banker's Drafts being instant. Yes, they are meant to be guaranteed funds, but with so many fakes floating around, it'd be fair do's to check that they aren't fake. I'm wondering if there's a banking ombudsman FAQ on those? Or someone on here who might know.

I guess it would take some time to verify with the issuing bank that a draft is valid, though assuming confirmed, the funds should be credited back-dated I'd have thought as the funds are taken from an account on issue - so a bank would have the payer's money at that point. Of course, no bank system can back-date anything - so dunno how that should work.

Mo

[mluton]

Bankers draft takes 5 days. It just guarantees the funds, it still needs to clear.

When i sold my MR2, i put the bankers draft in the bank Monday and it cashed Friday.

My experience as a barclays customer.

[ap0gee1978]

Interesting. Back in the days when I actually went to the bank in person to pay in cheques, they'd be credited to my account as of close of business that same day. This may have been because the cheques in question were drawn on accounts held with the same bank (all in the days before internet banking...) Same applied for the one-and-only banker's draft I've ever dealt with...

[mluton]

When i pay in a cheque or bankers draft, they show on my account balance at the end of the working day i paid them in, but i cannot withdraw funds from that amount, if that makes sense.

[Conshine]

If I pay a cheque into HSBC at 1pm, (over the counter), it will clear and the funds will be in the account just after 15:30 the same day.

I pay in Barclays cheques.

They are a business cheque from my work so I'm not sure if this is processed faster or not?

[ap0gee1978]

When i pay in a cheque or bankers draft, they show on my account balance at the end of the working day i paid them in, but i cannot withdraw funds from that amount, if that makes sense.

I know what you're on about. Never been in a situation to test that theory myself, so can't dispute what you say...

[heresmo]

Re ordinary cheques (rather than bankers drafts). It's given me an idea: thinking back, when a company I worked for sent out mailshots, they'd always include a couple of staff addresses to see if and when the literature arrived. Think I'll set up my own test ofthree cheques. Probs can't report back till after Friday though. I'll let you know.

Mo

[mluton]

Can you send one to me please.

[heresmo]

LOL I was rather hoping peeps would send cheques to me. We live in hope

Mo

[KenONeill]

When i pay in a cheque or bankers draft, they show on my account balance at the end of the working day i paid them in, but i cannot withdraw funds from that amount, if that makes sense.

Which has been the case, irrespective of bank, if both accounts not at same home branch, for at least 50 years (source father, retired bank manager).

[heresmo]

If you say so - not being rude, but forgive my ignorance as I thought that was the difference between a banker's draft and a cheque specially deposited. So that, with special deposit cheques, it meant the funds had been reserved but still needed 5 days to be clear. I guess they've changed the rules these days on bankers' drafts.

'Fraid I'm not able to look up a definitive answer that applies now, but it'd be worth knowing for when selling a car for example.

Mo

[Lance]

Last November I left the Banking Industry after almost 30 years, all of which was in Clearing, with the last 10 at middle management. In answer to some of the questions.............

Bankers drafts still needs to clear due to fraud issues as someone has already stated. Don't accept one as payment from someone you don't know and release the goods immediately!!

The banks use their own internal postal systems so are not affected by postal delays, however you putting a cheque in the Royal Mail could be delayed getting to the bank (and they often are).

If you pay cheques into an account and the drawee & payee are at the same branch (house) and you make the transaction at that branch, it should clear (or not) on the same day.

mluton, funds showing the same day are for intrest purposes, however you can't draw on the funds until they have cleared. Does however depend on where the funds were paid in, as to how quick it shows on the account.

Conshine - I don't know why that would be and am now confused.

I know the clearing cycle causes much anger to many, however the amount of fraud that goes on is unbelievable and therefore the cycle is necessary. I managed a Banks Central Unpaids Unit for 5 years and was regularly shocked by how many dishonest people there are.

[mluton]

Another helpful hint if your selling a car and are being paid via bankers draft is to get the bankers draft in your hand, and call the bank to confirm it. I did this, they asked for my name, i confirmed the number, then they confirmed the amount it was for.

[Lance]

APACS - Frequently Asked Questions

the above may answer some questions......APACS is the banks governing body (sort of).

[heresmo]

Many thanks Lance. I don't understand Conshine's post either. Conshine: Are you sure you don't just mean that it shows on your account that day? That is not the same as being cleared - i.e. funds that you can withdraw (which is 5 days).

Unless, as Lance says, a cheque is banked with a holder at the same branch perhaps.

Differently, but similarly: With Barclays, I've had occasion in the past to complain that money taken from my Barclays current account (via telephone banking) is not instantaneously transferred to my Barclays credit card. This re what is written by their words on their statements.

That said, I'm quite happy with Barclays' service generally. Just when odd things crop up, it's worth keep one's eyes open

Regards

Mo

[Conshine]

I'm quite sure it works like that, I can transfer the money as soon as it shows up and I can withdraw it at say 5pm the same day.

I was with Barclays and my work was at the same branch and the cheques did indeed clear on the same day and when I went to HSBC, I was prepared for the 3 - 5 day wait for the money, but up to now, it's business as usual, same day.

Thinking about it, it did take 3 days once, but since then no problems.

I'll ask when I next put a cheque in this week and see what their take is on it?

[heresmo]

Without knowing exactly what arrangement is happening (for example you might have other cleared funds in your account or an overdraft facility), I'd say if it's working to your satisfaction, then don't upset the applecart and leave well alone, as long as you are not receiving charges. If you are paying monthly charges re a particular account, it might be something to do with that.

Dunno

Mo

[KenONeill]

I'm quite sure it works like that, I can transfer the money as soon as it shows up and I can withdraw it at say 5pm the same day.

I was with Barclays and my work was at the same branch and the cheques did indeed clear on the same day and when I went to HSBC, I was prepared for the 3 - 5 day wait for the money, but up to now, it's business as usual, same day.

Thinking about it, it did take 3 days once, but since then no problems.

I'll ask when I next put a cheque in this week and see what their take is on it?

Are these specifically pay and/or expenses cheques from the firm to your personal account? If so, then there's a special arrangement for them to clear immediately. I'd presumed we were talking about personal cheques.

[Conshine]

Are these specifically pay and/or expenses cheques from the firm to your personal account? If so, then there's a special arrangement for them to clear immediately. I'd presumed we were talking about personal cheques.

Well, they jut pay me from the standard company cheque book that they pay the bills with.

I've paid in another since and that cleared the same day....think I'll keep quiet

[KenONeill]

Well, they jut pay me from the standard company cheque book that they pay the bills with.

I've paid in another since and that cleared the same day....think I'll keep quiet

I know my bank just asked if it was a pay cheque, and didn't actually require proof.

[heresmo]

Conshine, some banks allow you to draw on a cheque the day it arrives in the account. That's not the same as it being cleared funds though. It would probably occur for example if you hold an account with the same branch as the company paying your cheque to you, as the branch would know that there were sufficient funds in the payer's account for the cheque to cleared.

However, if you are not being charged interest or overdrawn funds, it might not mattter why it is so. Although, banks do tend to change rules so it might still be worth finding out from your employer or your bank as to exactly what is happening in case any rule change might affect you. I'd be surprised if a bank were "getting it wrong" so I doubt it would change just by asking the question - but don't blame me if it does!

Best

Mo