bank info

[evernon21]

how long does it take for a bank to know when another bank has funds avaible why do they make you wait a week

[dot.hawkes]

No bank has ever made me wait a week for my money, what sort of transaction is it?

[cazzz1975]

if its done electronically it should be instantly or the next working day

[frankleigh]

Here's how it works of you have a cheque from me, and I bank at 'B' Bank, you have an account with ''A' Bank.

Monday - you pay the chqeue into your bank 'A'. At close of business, they bundle up all the cheques for other banks, and they all get sent to 'A' Bank's "clearing house".

Tuesday - the different Banks swap cheques and work out the difference in the totals of all the cheques to be paid between the Banks. The cheques are then sorted into branches, ready to be sent to the Bank they are drawn on., so my Cheque gets put with all the others drawn on my branch.

Wednesday - My branch of Bank 'B' gets the cheque and decides whether I have the money to meet it. If I don't , they send (by 1st class post) the cheque back to the Bank that stamped it (your branch of your Bank 'A'). They should receive it the next day. Then they would write to you returning my cheque to you. IF you're lucky you get it back on Thursday.

However - Thursday - My Bank have the option of sending the cheque back 'late' up to 12.00 noon, but they must phone your branch to let them know it is being returned. Then the cheque gets posted back to your branch by 1st class post. They should receive it on Friday. The they post it to youm and you get it Friday - again if you're lucky.

You can probably see why most Banks would allow a week for a cheque to clear, as a big part depends on the post office!

You may think this is bad, but spare a thought for the Americans - cheques there can be returned up to 6 months after they are presented for payment.