Bank balance and available funds?

Anyone use online banking?

I cashed a cheque two days ago along with some cash. I have two figures - balance and what's available.

The balance has gone up as expected in the total of cheque and cash, but money available as of yet is as if I havent even cashed a cheque.

Does it take time for cheques to clear and become available as such even though the balance goes up?

I had similar problems but the other way round, ie I would spend money on my card abroad, my balance would be higher than cash available and certain transactions (incl ATM withdrawals) would then only come up a week later, subsequently bringing my balance down to the same as available. Friggin annoying at the time that was!

[maviczap]

Originally Posted by thulfi

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Does it take time for cheques to clear and become available as such even though the balance goes up?

I!

Normally about 5 working days for cheques to clear

yes, it's saying it's there, but i bet it won't let you take it.

[maviczap]

Just in case there are no funds in the bank account that the cheques were written for

Yeah upto five days, sometimes sooner depending on bank.

Yep - it's called "clearing" and yes, it works both ways, i.e. funds in and funds out (cheques and card transactions).

Most banks will pay you interest on the balance (rather than what's available) whilst the cheque is clearing.

Ah okay, thanks for the info. That's good to know. Better knowing you've got funds yet to clear and availables gonna go up as oppose to the other way round when you're waiting for the balance to drop.

even when the balance shows available banks suggest not drawing on the cash for the full 7 working days after the cheque clears/becomes available as they can still be bounced from the other bank, (on rare occasions) as i was advised today when making a withdrawl on a cheque cashed tuesday, but as i knew the check was good(well it was my nana, and i did see the bank authories the amount) they let me do it.
gemma.

I have recently written a cheque on Lloyds to transfer monies to Barclays[Same name accounts]knowing that there was more than adequate funds in Lloyds to cover it and it was bounced,apparently they were unsure of the signature. Luckily enough I had sufficient funds in the Barclays a/c to cover the debit card transaction[car purchase]but it showed as included in the Barclays balance for three days before they bounced it------------------so beware
I don't know if it is a thing with Lloyds at the moment but this week my daughter in law has had a cheque bounced for exactly the same reason,questioning her signature,but most embarrassing for her as it was her tuition fees for a year.

[mattSV]

Originally Posted by davepreston

even when the balance shows available banks suggest not drawing on the cash for the full 7 working days after the cheque clears/becomes available as they can still be bounced from the other bank, (on rare occasions) as i was advised today when making a withdrawl on a cheque cashed tuesday, but as i knew the check was good(well it was my nana, and i did see the bank authories the amount) they let me do it.
gemma.

Under normal circumstances, for most banks the following now applies:-

• Day 1 - You pay a cheque in
• Day 2 - The cheque is being sent to the drawer's bank
• Day 3 - Drawer's bank receive the cheque and decided whether to pay it or not - your bank might start to give you interest on the funds from today, and might allow you to draw on it
• Day 4 - If the cheque has been returned (bounced) then it will be on it's way back to your bank
• Day 5 - Your bank will debit your account if they have been told it has bounced

After day 6, the cheque can now be considered as 'paid' and you would normally have no problems drawing against it

NB - all days above are 'working days', ie do not include weekends or bank holidays
Some banks may extend the clearing cycle for 'unusual transactions' - e.g. possible fraud
Building societies (are there any left?) and 'Bank of Toytown' banks may have slightly different rules