why 5 days to clear cheques/lodgements

J

Johnpfitz

Registered User
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Why do Banks need 5 days to clear cheques or lodgements?

I notice they still deduct 'referral' fees and unpaid direct debit
penalties to themselves from the uncleared money.

I lodged a cheque to my account last Monday morning. It has not cleared
on Friday morning. My DD's and SO's are being rejected. I was told by the bank
that this money will not clear until 8 - 9pm tonight.

They have so far deducted 30e in charges from my uncleared cheque.
 
Why should the bank pay DD's and S/O's against uncleared funds. We all know that it takes five days to clear a cheque and its not going to change. Cheques should and will be done away with in the next few years. You should always ask the payer of any cheque to electronically transfer the funds to your account and once in your account they are cleared funds.
 
Johnpfitz said:
I lodged a cheque to my account last Monday morning. It has not cleared on Friday morning.
Click to expand...

Assuming the cheque lodged is drawn on a bank different to your own ..

That cheque will be presented in that bank on Wednesday. That bank have 'til today to return it to your bank if they need to, e.g. available funds in account on which the cheque is drawn.

These rules are standard for all customers, and not specific to you or the account on which the cheque is drawn.

In other words, you have lodged a 'promise to pay' to your account and expect to have access to that promise on Monday when that promise can revoked after the funds have been taken out of your account.
 
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