Cashing cheques

PGL

Quick question: My employers pay me with an AIB cheque. I have a BOI account. As a result it takes 5 working days for the cheque to clear. Is it possible to cash the cheque in an AIB branch, and then lodge the cash into BOI? Or do I need an AIB account to do this?

cheers!

jimoc

This may have changed recently due to anti fraud laws, but I do know that previously if you wanted to cash a cheque and get actual honest to goodness cash for it, you had to do it in the branch it was drawn down from, bring a photographic id like passport or drivers licence and proof of address.

What you could try and suggest is that your employer pay you 5 days early

VB1962

Ask BOI to allow you to draw against uncleared funds - this will allow you lodge the cheque and draw against it immediately - downside is that if you draw funds on day 1 you will be charged uncleared interest - takes BOI 1 working day to get funds from another domestic bank - the 5 day piece is about allowing time in case the cheque bounces.

Alternatively move to AIB where funds clearance will be instantaneous although you'll still need to ask them to 'flag' your account to allow immediate drawings on cheques.

Toots

VB1962 wrote: »

Ask BOI to allow you to draw against uncleared funds - this will allow you lodge the cheque and draw against it immediately - downside is that if you draw funds on day 1 you will be charged uncleared interest - takes BOI 1 working day to get funds from another domestic bank - the 5 day piece is about allowing time in case the cheque bounces.

Alternatively move to AIB where funds clearance will be instantaneous although you'll still need to ask them to 'flag' your account to allow immediate drawings on cheques.

Actually this is not quite correct, you may be able to draw on the funds straight away, but even if you have an AIB account the cheque will take 3 working days to clear, as opposed to 5 if it is lodged to another bank, and you will still be charged interest if you draw it before the 3 days are up. See below for more info:

Toots* wrote: »

In the case of cheques drawn on the same bank in which they are lodged, the procedure is this:

Day 1: Cheque is lodged by payee. Drawer's account is debited.
Day 2: Cheque has been debited from drawers account, but can still be returned unpaid if 1.The drawer requests the cheque be stopped
(this can be done the day after the cheque has been debited) or 2.the cheque is out of date, not signed, post dated, incomplete.
This can be discovered when the cheque goes through clearing on day 2.
Day 3: Cheque is cleared in payee's account.




In the case of the cheque being drawn on another bank ie: AIB cheque lodged to BOI account, it goes:

Day 1: Cheque is lodged by payee. Debit is sent through clearing to other bank.
Day 2: Debit reaches other bank, and is sent through to drawer account.
Day 3: Providing there are sufficient funds in the drawer's account, the cheque is debited, but can still be returned unpaid if 1.The drawer requests the cheque be stopped, or 2.the cheque is out of date, not signed, post dated, incomplete.
Day 4: Cheque has been debited from drawers account, but can still be returned unpaid if 1.The drawer requests the cheque be stopped (this can be done the day after the cheque has been debited) or 2.the cheque is out of date, not signed, post dated, incomplete.This can be discovered when the cheque goes through clearing on day 4.
Day 5: Funds are cleared in payee's account.

Ask your employer if they'll pay you electronically, then the funds will be cleared to your account on the same day.

VB1962

Sorry to disagree Toots but I'm talking about clearance for funds not fate.

Uncleared interest wil not be charged in the circumstances you mention -AIB cheque lodged to AIB account clears for funds immediately - other domestic Associated Bank cheques take 1 working day. This is about when the clearing Banks settle with each other on the overnight exchanges - not about when they claim for unpaids.

You are correct about the clearance for fate cycle.

Toots

VB1962 wrote: »

Sorry to disagree Toots but I'm talking about clearance for funds not fate.

Uncleared interest wil not be charged in the circumstances you mention -AIB cheque lodged to AIB account clears for funds immediately - other domestic Associated Bank cheques take 1 working day. This is about when the clearing Banks settle with each other on the overnight exchanges - not about when they claim for unpaids.

You are correct about the clearance for fate cycle.

I've never found this to be the case on my own AIB account. Whenever I get AIB cheques I lodge them there, but I have been charged debit interest if I have drawn them before the 3 days are up. Same story in BOI.

VB1962

Hi,

Uncleared Interest is charged where Customers draw on funds which the Bank has not yet collected on their behalf.

In the case of an AIB cheque being lodged to an AIB account the funds are already with AIB - so AIB are never 'out of pocket' if the customer draws against the AIB cheque. However, if it was another associated Bank cheque, then AIB would not be 'in funds' for 1 day. If the Customer drew against the other Bank cheque then Uncleared Interest on the amount drawn would be charged for 1 day.

Another way to explain it would be to say that AIB has all its customers' funds in 1 account and simply allocates these funds to individual customers using its internal accounting system. So an AIB cheque lodged to an AIB account is simply an internal accounting procedure and AIB always has the money. However, if it gives credit against another Bank's cheque before the other Bank pays over the money then it is lending the money to you and Uncleared Interest would be charged.

Sorry for the long explanation - hope it makes sense.

Toots

VB1962 wrote: »

Hi,

Uncleared Interest is charged where Customers draw on funds which the Bank has not yet collected on their behalf.

In the case of an AIB cheque being lodged to an AIB account the funds are already with AIB - so AIB are never 'out of pocket' if the customer draws against the AIB cheque. However, if it was another associated Bank cheque, then AIB would not be 'in funds' for 1 day. If the Customer drew against the other Bank cheque then Uncleared Interest on the amount drawn would be charged for 1 day.

Another way to explain it would be to say that AIB has all its customers' funds in 1 account and simply allocates these funds to individual customers using its internal accounting system. So an AIB cheque lodged to an AIB account is simply an internal accounting procedure and AIB always has the money. However, if it gives credit against another Bank's cheque before the other Bank pays over the money then it is lending the money to you and Uncleared Interest would be charged.

Sorry for the long explanation - hope it makes sense.

It makes perfect sense, that's why I'm confused as to why I was charged debit interest. I don't use the account very much, my main accounts are with BOI where I work. Must give them a buzz tomorrow and query it.