7days for cheque to clear with EBS

W

wexford

Registered User
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in this age of high speed computerised everything - is this normal? The cheque lodged shows immediately in the account, but won't be 'cleared' (and therefore accessible) for 7-8 days...

surely this is out of the ark?

W
 
Due to how easy they are to forge banks can't trust cheques/drafts anymore and clearing takes longer than it used to.
 
As long as people continue to accept pieces of paper and lodge them in other banks, it will take time for the process to complete.

When the cheque arrives in the payer bank, the bank still have a period of time within which they can reject it for technical or credit reasons.

Meanwhile the payee bank is unsure of getting full value for the item.

If you were a prudent banker, would you give full value on Day 1 ? Also, if you could deposit the value of accumulated uncleared items overnight at interbank rates ...
 
Hi

Clearly, the time it takes to "clear" a cheque is down to the system used - investment in techology (by all the institutions) could result in cheques clearing between 24-48 hours (or dare I suggest almost instantly), but needless to say all institutions who subscribe to the clearing system, profit while we wait for cheques to clear.

Do EBS make you wait the 7 working days, before they pay you interest on a cheque lodgement, to say a deposit / savings account, does anyone know ?

Cheers

G>
 
I spoke to the EBS about this myself a few weeks ago. Whilst the time taken to clear cheques is as decribed above to give time for any cheques not paid by the bank the cheque is payable at to be returned, EBS pays interest on the cheque amount from the day after it has been deposited which is the same time that the other bank credits EBS with the money.
 
Well, thats fair :)

- mind you, the clearing system in Ireland ain't :(

Cheers for the info

G>
 
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