Whats this AIB Business Account about

banjacksed

I get a BOI cheque for 2400 and lodge it into my AIB account, It takes 5 working days to clear :eek:

If I give a aib cheque to a boi customer and they lodge it it takes 3 days to clear,:rolleyes:

Am i missing something here in the irish banking system.
Is it just me or whats that allabout.

unclebill98

Your are looking at this wrong.

Your boi chq is lodged in to your aib account. The six day wait is the time taken for the clearing cycle to let aib know the boi chq is ok.

Your aib chq lodged by a customer into their boi account still takes the same time for it to clear their end. However after three days the funds are taken from your account.

So your boi chq for 2400 would have shown up on the boi account on day three also.

banjacksed

Ok so why 5 days to clear?
it used to be only 3 a number of years back, this is very inefficient in these days, In fairness are they using your money for these days that you are denied your money?

unclebill98

Well for the last 17 years it's been 5-6 days depending on the cashier you'd ask.

It's down to simple technology. You actually start earning interested on the funds on the 2nd-3rd day.

Banks are not required to offer clearance ASAP and in fact it impossible, best case would be next day. Until the are required by Irish/EU law like with the psd directive things will not change.

chris85

banjacksed wrote: »

Ok so why 5 days to clear?
it used to be only 3 a number of years back, this is very inefficient in these days, In fairness are they using your money for these days that you are denied your money?

Always has been 5, generally 3 if the cheque is drawn on the same bank as its lodged to.

Dramatical saying they are denying you your money. It could be better but unless EU directives come down similar to what happened for electronic transfers then it wouldnt happen as already mentioned

banjacksed

Well ok fair enough, but 5 days is a lot in fairness, small country couple of banks, you would think we could be a little more efficiant.

Tow

As above, the 5 days to clear is to give the other bank time to tell your bank if there is something wrong with the cheque, and a cheque can still bounce after 5 days.

The fact that you cannot withdraw against the cheque for 5 days is due to a flag set against your account. If you ask nicely and the bank trusts you they can change the flag to allow you withdraw money as soon as a cheque hits your account. Of course, if the cheque later bounces and you don't have money to cover it the account will be overdrawn etc...