Why do cheques show before they're cleared?

dohouch · 13-02-2011 6:59am #1

This is about AIB, and it's a Cashsave account. No overdraft facility. Don't know if other banks are the same.

When I lodge a personal check from U.S.A. I'm told that it might take up to 10 working days to clear.

So why does it show on my account as if it's my money?

Would things not be clearer (for me they would!) if it was only added after it had cleared?

unclebill98 · 13-02-2011 12:54pm

It so you know its lodged!

Its the internal process that shows it as cleared funds. What your asking would be a logistic nightmare, trying to keep track of who owns what chq and then given you your funds.

dohouch · 13-02-2011 1:05pm

I forgot the main pont of the op which is, I don't know (am not informed) when the the funds have cleared. Up to "10 working days", maybe it clears in 5 or 6 or7,. Maybe I spend it after 10 working days and it doesn't clear. What then?

unclebill98 · 13-02-2011 3:53pm

USD chq's can be return unpaid for a unlimited amount of time. The fact they let it be lodged and not sent on a collection basis means your an undoubted customer and do it regularly enough.

10 days gives them a chance to get it paid. If you take the funds and the chq bounces you'll simply be debit the amount and then owe the bank.

Rebel1977 · 13-02-2011 5:41pm

When they say allow 10 working days it can take longer, once took me 22 days to get cleared funds on a canadian dollar cheque, funds lodged but it's like any other cheque it must go through a clearing process.

another thing is a bank might send the cheque on collection, when they do this the cheque does not get lodged into your account, they send the cheque back to the i.e. usa bank to ensure funds are there, usa bank in turn sends money back to i.e, aib electronically and in turn transfers to your account which is cleared straight away, but cheque collection can take longer than normal clearing.

Why do cheques show before they're cleared?

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