Bank Clearing times

jp · 18-12-2004, 08:12 AM

The number of days for cheque clearing (3-5) days has not changed since paper had to be shifted between banks. It is an obvious rip - off of the consumer and a scandal that banks get away with it.

A UKIP policy to improve this situation would find favour with the voters

mkpdavies · 18-12-2004, 09:30 AM

Seconded

Julian Morrison · 18-12-2004, 11:06 AM

IIRC it's not totally arbitrary. Basically, the banks exchange promissory notes, collect up cheques, then on a 5 day cycle they get together and sum up what's owing and exchange reserves. The clearing cycle allows the recipient bank to actually be paid before it credits the customer. Otherwise, it could be out of pocket for bounced checks or banks which can't make good their obligations.

The system could be improved and made instantaneous via computerized exchanges, but bankers probably think that what they have now works, and they'd rather not take risks by monkeying with it.

C_steam · 18-12-2004, 11:13 AM

Also, I believe, the clearing cycle provides a rolling cash lump sum which accrues interest. This pays for a proportion of the bank's overheads which otherwise would have to be met by the customer, either through increased charges or reduced interest payments.

Carl Faulkner · 18-12-2004, 11:13 AM

Who cares about a few days for a cheque clearance? Most transactions these days are electronic anyway.

The time taken to get life-saving treatment is one worth persuing.

MrMoor · 19-12-2004, 06:51 PM

Along with Al Qaeda and Tony Blair the banking industry is one of the greatest dangers to our society to date.

C_steam · 19-12-2004, 07:02 PM

That's a bit strong! What is the logic for that statement?

MrMoor · 19-12-2004, 10:56 PM

Sorry, just got a mortgage, sounding off about the banking system in general!

Mind you, there is an awful lot of debt in this country, it can't just be down to us.

Julian Morrison · 20-12-2004, 06:36 AM

The debt is down to taxes wasting nearly all of people's productivity (counting direct, indirect, stealth and referred-via-prices taxation).

Intbel · 20-12-2004, 11:05 AM

There are many folks who do not have bank accounts and many who do not want them.

The government, aided and abetted by the banks is seeking to change this.

The stated objective being to "Enable all folks to have access to (affordable) credit.

That a government should seek to encourage borrowing is disgraceful - it should be seeking to alleviate the (perceived by some) necessity to borrow.

I suspect the real objective is to have a cashless society.

In this way, for every transaction everyone makes there is a record - not only of the transaction, but of exactly where and at what time the transaction took place.

Also, without hard cash - there can be no funds exchanging hands without the banks (and the government) having a record of the exchange.

Think on ...

~~~~~~~~

Clearing time may be needed when using cheques; electronic banking is instant and clearing times for such are unjustified.

I detest banks. And while I'm at it, the stock market as well.
And supermarkets, Macdonalds, Pizza Hut et al ...

Bleh.

P.S. And Rupert Murdoch. Especially Rupert Murdoch.

18-12-2004, 08:12 AM	#1 (permalink)
jp Senior Member Join Date: Nov 2004 Posts: 1,000	Bank Clearing times The number of days for cheque clearing (3-5) days has not changed since paper had to be shifted between banks. It is an obvious rip - off of the consumer and a scandal that banks get away with it. A UKIP policy to improve this situation would find favour with the voters

18-12-2004, 09:30 AM	#2 (permalink)
mkpdavies Uber Member Join Date: Sep 2004 Location: Woking Posts: 30,604	Seconded __________________ http://brits4ronpaul.blogspot.com/ http://wokinglibertarians.blogspot.com/ http://lpuk.org My ignore list Labour, Blue Labour, Lib Dems

20-12-2004, 11:05 AM	#10 (permalink)
Intbel Uber Member Join Date: Dec 2004 Location: In a field near you - look for the yellow and purple tent ... Posts: 4,665	There are many folks who do not have bank accounts and many who do not want them. The government, aided and abetted by the banks is seeking to change this. The stated objective being to "Enable all folks to have access to (affordable) credit. That a government should seek to encourage borrowing is disgraceful - it should be seeking to alleviate the (perceived by some) necessity to borrow. I suspect the real objective is to have a cashless society. In this way, for every transaction everyone makes there is a record - not only of the transaction, but of exactly where and at what time the transaction took place. Also, without hard cash - there can be no funds exchanging hands without the banks (and the government) having a record of the exchange. Think on ... ~~~~~~~~ Clearing time may be needed when using cheques; electronic banking is instant and clearing times for such are unjustified. I detest banks. And while I'm at it, the stock market as well. And supermarkets, Macdonalds, Pizza Hut et al ... Bleh. P.S. And Rupert Murdoch. Especially Rupert Murdoch. __________________ We are all free to choose - every step of the way - no exceptions.

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18-12-2004, 11:06 AM	#3 (permalink)
Julian Morrison Member Join Date: Dec 2004 Location: Banbury, England Posts: 198	IIRC it's not totally arbitrary. Basically, the banks exchange promissory notes, collect up cheques, then on a 5 day cycle they get together and sum up what's owing and exchange reserves. The clearing cycle allows the recipient bank to actually be paid before it credits the customer. Otherwise, it could be out of pocket for bounced checks or banks which can't make good their obligations. The system could be improved and made instantaneous via computerized exchanges, but bankers probably think that what they have now works, and they'd rather not take risks by monkeying with it.

18-12-2004, 11:13 AM	#4 (permalink)
C_steam Super Moderator Join Date: Oct 2004 Location: Paddling up 5hit creek..... Posts: 7,501	Also, I believe, the clearing cycle provides a rolling cash lump sum which accrues interest. This pays for a proportion of the bank's overheads which otherwise would have to be met by the customer, either through increased charges or reduced interest payments.

18-12-2004, 11:13 AM	#5 (permalink)
Carl Faulkner Member Join Date: Oct 2004 Posts: 352	Who cares about a few days for a cheque clearance? Most transactions these days are electronic anyway. The time taken to get life-saving treatment is one worth persuing.

19-12-2004, 06:51 PM	#6 (permalink)
MrMoor Member Join Date: Oct 2004 Posts: 259	Along with Al Qaeda and Tony Blair the banking industry is one of the greatest dangers to our society to date.

19-12-2004, 07:02 PM	#7 (permalink)
C_steam Super Moderator Join Date: Oct 2004 Location: Paddling up 5hit creek..... Posts: 7,501	That's a bit strong! What is the logic for that statement?

19-12-2004, 10:56 PM	#8 (permalink)
MrMoor Member Join Date: Oct 2004 Posts: 259	Sorry, just got a mortgage, sounding off about the banking system in general! Mind you, there is an awful lot of debt in this country, it can't just be down to us.

20-12-2004, 06:36 AM	#9 (permalink)
Julian Morrison Member Join Date: Dec 2004 Location: Banbury, England Posts: 198	The debt is down to taxes wasting nearly all of people's productivity (counting direct, indirect, stealth and referred-via-prices taxation).