Paying HSBC cheque into HSBC account

Not sure, but my bank, (Halifax), you have to wait 5 working days.

Quicker. Should be overnight, I think.

Only if it is a 'house' cheque - ie issued on the same sort code as the payee. Otherwise it will take the full cycle!

MC

I will beg to differ on that, it is that it is presented at the same code as the payers account is held at, doesn't matter if it is the payees branch or not as the credit will still be processed the same day to the account, for that matter the same clearance from the payers account would apply even if you banked with another bank and presented the cheque and a paying in slip at payers branch.

I actually have a feeling that HSBC don't allow you to access the money any quicker than the normal clearing cycle even though they have payers account on presentation, if you want it quicker they charge you for special presentation, on the flip side the money has still been debited from the payers account so it is basically yours even if they do make you wait.

Chris

"Chris" wrote

Do you get interest on the money while it is clearing?

Maybe. What I can say is that online payments from a FirstDirect account to a HSBC account in the UK go overnight. This did surprise me as I thought only payments within the same branch were same day.

Lets go back shall we?:

OP - does a HSBC debit credited to an HSBC account clear faster than 3rd party bank? Me - "Yes, but only if it is a house cheque - ie drawer and payee at same branch, ie same sort code, in which case funds clear as soon as cheque processed that day.

I am sorry, but that is a factually accurate statement - if you don't believe me contact your bank, in fact any bank, and ask them!

MC

Yes

An online payment is different to a cheque - as long as the online payment is within the same bank it will be instantaneous - or at least this is the case in Natwest, Barclays, Cahoot and HSBC/F.D - don't know about any others.

MC

"Marcus Collie" wrote

That's better than with FirstDirect then (a division of HSBC) - who *don't* apply interest until the cheque has cleared. I didn't think that Lloyds-TSB did either ...

I will accept that the statement above is true as you have now added the word DRAWER which wasn't in you original reply which just said it had to be the payees bank

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The reason I was pointing out is that I know of someone who had a cheque issued by a company they thought were in trouble, they phoned their bank's business support team stressing their suspicions (fortunately the call was recorded automatically) and were adviced that the quickest way to clear the cheque was take it into the local branch and request special presentation on it, next day the payee went bang, accounts were frozen and the cheque was dishonoured.

It cost the bank the full value of the cheque as the matter was taken to the banking ombadsman with the call recording and the complaint was upheld as had the advice been in the circumastances to immediately drive the 20 mile to present the cheque at the drawers bank it would have been honoured.

In message , Chris writes

I think contributors to this thread may be confusing two meanings of the word 'cleared'.

I think the original OP and possibly the one above are really asking 'when is the cheque irrevocably paid' which is quite a different question to 'after what period will my bank regard a cheque as being paid to such an extent that they will let me draw against it without charging me interest'.

The post above refers to the former.

Presenting a cheque for payment over the counter at the drawee will mean that the cheque, if paid, will be debited to the drawers account immediately and the corresponding credit will then be sent to the payees account. If the payee maintains his account at the drawee then it can be instantaneous but otherwise it will be sent via the credit clearing. Some banks truncate the credit clearing to same day.

If the cheque is crossed, even with the most simple open crossing, then the cashier at the drawee wont tell the payee the fate of the cheque but they will tell the payees bank if they ring after 'close of business', i.e. 3.30, but this practice is changing and may already have done so.

If you pay in a cheque at any branch other than the drawee then the cheque will be remitted via the clearing and despite not needing to be physically presented at the drawee any more, the time scale for it becoming available for you to draw against at your branch remains the same. Different banks have different practices so this can be 3, 4 or more working days.

Asking for a cheque to be 'specially presented' doesn't get the cheque 'cleared', (i.e. available to draw on without incurring interest') any quicker at all, but it does get it presented at the drawee quicker and its fate can be determined the next day, but the drawee sends a bank giro credit to the collecting bank as payment. Most banks will let a payee draw against a specially presented cheque once the drawee learns the fate of the cheque, i.e. next day, but the payee will still be charged interest because the collecting bank wont get paid by the drawee for a few days.

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another PERSONAL account there and then - FACT----------------------!!! It does not matter where the account is. It is called Real time online banking system. Eric

Don't tell me it's called ROBS for short.

Hmm - Real time online banking system. Are you trying to suggest that Lloyds, by some miraculous new system, both credit and clear a personal account cheque from one account to another simultaneously, irrespective of drawer? I am sorry, but that is not the case at all. Try it sometime! Even better, go to:

As several posters other than I have reiterated on many occasions, there is ONE exception to this system - that of the house cheque.

The cheque system is essentially still a paper chase system - and hence same day clearance is simply not possible - the cheque still travels from one bank to another for verification of funds availability, as well as for the issuing bank to inspect the cheque for falsification, errors, etc (though they don't for cheques of less than 1000 or so depending on the individual banks' policies)

Do not confuse cheque payment with any other payment system - it is quite different to online, telephony-based, BACS, CHAPS & any other systems.

MC

In message , Marcus Collie writes

No longer true.

Statutory Instrument 1996 No. 2993, The Deregulation (Bills of Exchange) Order, removed this requirement.

'Truncation' as electronic presentation is sometimes called, can be, and often IS, instantaneous. I reckon Eric is right.

out all stopped cheques, any accounts that have insufficent funds to pay and a signature mandate is held on screen to check signatures.I will repeat that this applies to Personal accounts only and not Business account cheques. It makes no odds whether your account is in London and the cheque you pay in is drawn on someone living in say Newcastle or Sunderland.

know what a cheque is and know how to differentiate between the above methods.Obviously your bank is not up to it why not pop down to your local branch of LTSB and transfer your account. You will be most welcomed (well if you have a clear credit history , can identify yourself and confirm your address, agree to pay your salary into your account and promise never ever to step into a branch at lunchtime as you will disturb my lunch!) LOL Eric