Natwest - paying for a cheque to clear faster?

[zephyrcat]

DP used to do this with Barclays. When I asked to do it in Natwest she said "All it does is finds out if the funds are available in the other persons account for the cheque to clear, it doesn't clear the cheque faster"

But can you draw on it if it shows it will clear?

I think both statements are true. I think they check that the funds are available and the bank therefore takes the risk of allowing you to draw on the funds because they know that the cheque should clear.

That is just my humble understanding of the system.

The experiences are of Llyods TSB BTW

We wrote a cheque for a bathroom company and the money went from our account two days later on the basis that the company asked for special clearance!

From what I remember from working at Royal Bank of Scotland, if you want a cheque to clear the next day, the branch you pay it in at sends it in the first class post to the drawer bank. Then the branch you pay it in at, phones the next day and asks if it is "in their hands and in order, will it be paid". If there are the funds in the account, they will say yes, but usually with a little disclaimer (in case the person goes into the branch and draws out the money over the counter which should have been used to honour the cheque or puts a stop on it). So it could come back unpaid, even if they have said it will clear. Does that make sense ?(have drunk wine)

I used to work for Natwest, as they said it's only checked for payment, not cleared any quicker through your account. But they may allow you to draw against it.

Worth remembering though that the cheque is physically sent by first class post to the paying bank (well that's what used to happen). If it doesn't get delivered you may not get an answer any quicker anyway but you'll still have to pay the fee.

In the old days....cos it's more than 10 years since I worked in banking! - the bank sending the cheque would credit the customer's account with uncleared funds and debit their own internal account for special cheque clearances.

The receiving bank would 'pay' the cheque by withdrawing the funds from the account immediately and placing them onto an internal suspense account and that money would then be used to pay the first bank.

So the cheque will not 'clear' more quickly but it will be 'paid' more quickly and the bank should allow you to draw against it.

Bank in those days, a clerk did not have to give their name to an 'in hands and in order' phone query as it was not a definite PAID but you did have to give your name to the requesting bank once the cheque was in your hands together with the answer - paid, payment stopped, refer to drawer, refer to drawer please represent, post-dated, etc

would love each bank to use the same procedure and language. Used to work for lloyds 11 yrs ago

agree - hands and in order calls - no guarantee on the answer - free

special clearance - answer given quicker and funds available for you to draw

think natwest worker is just being pathetic in pointing out semantics - although i have no accounts with them so don't know what the procedure is for them. look at the slip that you have to sign which should explain their undertaking

at my current job, we don't use hands and in order calls

and I think "scabby abbey" is stopping using the special clearance procedure

Natwest worker is protecting her back IME you get loads of folks who think that sending a cheque 'Direct' means that it's cleared. Then they come and shout at you when it isn't.

Sue - you have a good memory. I still remember the account numbers of the big accounts I dealt with lol. And the suspense account numbers too lol!

I was told this a few months ago when I had a cheque that I needed clearing quickly.
I'm with lloyds, in my case even with the service which you have to pay for I was told I wouldn't be able to draw on it until it had hit my account. So completely pointless paying to check it then!
Your bank may let you draw on it though, think it depends entirely on your bank.

Thanks everyone When I took the cheque in I asked someone else and she said pretty much the same... basically, you pay a fee, they send the cheque to the bank who issued it/where the money is coming from and ask if it will clear. Natwest ring you and say yes or no and that's it. I wouldn't be able to draw on it. Seem s a bit pointless to me?!

We go on hol next wednesday so will just pray that it clears Moinday/Tuesday!!

It's not often people would do this because they wanted to draw cash - usually it would be becasue they were selling a car say and wanted to check the cheque or draft was kosher. Or had had persistent problems with someone who owed them a significant amount of money and wanted to get it paid.

Because the funds are credited to the account uncleared they won't clear any more quickly for electronic purposes e.g. withdrawing from a cahs machine. But if say your partner who banked with a diff bank was putting half the deposit for a house into your account and the two of you then wanted to send the money onto a solicitor's account, then the bank should really let you draw against it.

HOWEVER, this would make a massive uncleared position on the account so you would be unlikely to be able to use your debit card anywhere for a few days either in shops or in cash machines.

Thanks Saggers - I remember some of the numbers and still recognise sort codes of various branches!

I considered going back this year - I was approached by the manager of a local branch when I went in to have a bit of a whinge - but there wasn't enough opportunity for p-t work, term-time.

I'd quite like to go and temp though, just to find out how much has changed!

Wild horses wouldn't drag me back Sue. The money was good but it wasn't the job I signed up for all those years ago. No selling then!

Yes, the selling was all coming in when I was there. I moved out of branch to Head Office 1-2 years before I left.

I didn't like the contrived selling but I do believe strongly in relationships with customers which is where the banks are failing madly right now for many people - and have done for many years - but it is nigh on impossible to reverse that change when many people have no need these days to set foot in a bank at all really.