Bank Job

[Birchy]

Why does a cheque take three or even five working days to clear? And why - if you pay CASH into an account - does that not register immediately? I don't believe for a moment that banks would try to make use of somebody else's money for their own benefit......but why the gap, and where in the ether does the money go?

[bernardo]

I don't know the answer to the first bit, but "where in the ether does the money go" is nowhere. The money doesn't need to "go" anywhere, because it only exists in the form of electronic impulses in the bank's computer which tells the bank how much you have in the account. The bank merely adjusts the electronic information when it feel like it - it could even actually give you a million pounds by mistake without "taking" the million "out of" anywhere else. The "where does it go" question only applies to physical matter and energy, which are subject to the laws on conservation thereof. So if you have deposited your money in the form of paper notes in a safe in the bank, you will only need to worry about where *that* has gone (if it disappears).

[Birchy]

Hold up Bernie....It don't matter about matter. And as for electronic impulses, I'm the kind of person who presses a light switch and sees the light comes on straight away....so I'm slightly confused as to why your described electronic impulses are less efficient than mine. The "money"'s "existence" is irrelevant in terms of it's physicality......what I'm concerned about is the ludicrous delay. Why so long?

[robber1]

Cos the Banks are robbing B******s.

[wildwood]

Why won't you believe that banks would try to make use of somenody else's money for their own benefit? because that is exactly how they exist. They use their customers' money to lend/invest at a greater rate of interest than what they pay out.
The gap between deposit and credit gives them millions of cash to play with for trading funds. Note that debits are recorded against your account straight away.

[bernardo]

How many cheques does a cheque-checker check? Maybe they need to check their employment practice to check whether they need more cheque-checkers to check cheques.

[Birchy]

What is e-mail for "tongue in cheek"? Thanks wildwood.... there's me thinking that banks were up front, honest institutions. What a silly nit I am!

[boviner]

HI, CLEARING IS ALREADY DONE ELECTRONICALLY, BANKS DONT HAVE TO WAITE FOR CHEQUES TO ARRIVE IN THE POST ANYMORE.THE HUGE VOLUME OF CHEQUES MEANS VETTING PROCEEDURES TAKE TIME PERHAPS A COUPLE OF DAYS-- BUT NOT THE FIVE OR MORE SOME BANKS TAKE.SO WHY THE DELAY? ACCORDING TO STUART CLIFFE OF THE NATIONAL ASSOCIATION OF BANK AND INSSURANCE CUSTOMERS, BANKS DONT WANT TO LOSE THE INTEREST THEY EARN FROM HOLDING ON TO FUNDS: TWO BILLION CHEQUES ARE WRITTEN EVERY YEAR SO SITTING ON EACH ONE FOR A FEW DAYS GENERATES MILLIONS IN EXTRA PROFITS. CHECK THE SMALL PRINT WHEN CHOOSING AN ACCOUNT TO SEE HOW LONG EACH BANK SPECIFIES FOR ITS CLEARING PROCESS. SORRY I WENT ON A BIT BUT IT HAD TO BE TOLD LETS HOPE PEOPLE WILL READ THIS AND IN SOME SMALL WAY REDUCE THE THIEFS PROFITS. REGARDS FROM BOVINER.

[Birchy]

Blimey Boviner.....hope your reply didn't eat too much into your capital !

[Toglet]

My bank tells me that CASH paid in doesn't need to clear - it's in my account instantly and can be drawn on straight away.