paying by cheque

[yecats2885]

as a 22 year old, ive never used my cheque book for paying for stuff except when posting them

i really need to get some groceries tomorrow, but dont have enough money in my account until tuesday when i get paid

i have a cheque guarantee card for �100 so can i pay by cheque tomorrow?
the supermarket wont be able to bank it until monday so it wont clear before tuesday will it...
or does that not how it works??? help please

[Buenchico]

Your cheque guarantee card effectively gives you access to an unauthorised overdraft. If the funds are called upon (by the supermarket's bank) before they're actually available, the cheque will be honoured but you might be charged, by your bank, for going into the red. (It would depend upon the terms of your account).

As you state, there's quite a good chance that your funds will arrive in your account before the cheque is presented. However you should be aware that all banks make large profits by hanging onto money (in their own accounts) during the clearing process. If the cheque is presented on Monday, the money could come out of your account straight away. The bank would then use that money, for a few days (earning interest for them), before paying it to the supermarket's account.

However your real problem will be finding a supermarket which accepts cheques. Asda ceased accepting them in 2006. Sainsbury's & Morrison's adopted a similar policy in 2007. Tesco haven't taken cheques since February 2008. Marks & Spencer also ceased taking them last year. Aldi & Lidl have never accepted cheques. My local Co-op (East of England) have recently stopped taking them; it's likely that other Co-ops will have a similar policy.

To the best of my knowledge, the only big supermarket chain which still accepts cheques is Waitrose.

Chris

[Charisse]

Chris (Buenchico) is correct with regards to the supermarkets mentioned. I do not know of any that still accept cheques. Even our local Londis shop does not take them preferring swipe cards instead.

[factor-fiction]

Is there any money in the account- is here enough to buy only the most urgent/essential items for now and wait intil you've been paid for the rest. The problem could keep arising again unless you cut back on spending for a bit. Good luck.

[factor-fiction]

PS- this is where credit cards can help as they give 30 days to pay... but you must make sure you always pay in full by the due date

[anjlegs]

Waitrose no longer take cheques

[spudqueen]

You might be best trying a 'corner shop' and seeing if they still take cheques. If you're not a regular customer though they might be reluctant. As it's now Sunday (sorry, I was busy yesterday and didn't come on Answerbank) it's a bit late, but some banks allow their customers to cash cheques at a Post Office. It might have been worth your while to check at your local Post Office to see if this is the case, as it's likely that the cheque wouldn't have got to your bank before Tuesday.