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I recently discovered if you deposit a cheque over $1000 you have to wait 4-6 WEEKS for it to be cleared and hot your bank a/c, this is madness, under $1000 is usually pretty quick, a week would do it but 4-6 weeks, my last cheque was banked a month ago, we normally have to wait a few weeks for it to arrive from the US, and then bank it and wait a further 4-6 weeks for me to get the money - there has to be a better way than this?
I phoned around a few banks and internet banks and it seems the norm on larger amounts, as if the exchange rate and initial charge for depositing it wasnt bad enough they then keep it for weeks.
They do say that "......foreign negotiated cheques can take up to 4-6 weeks to clear".
My actual experience has been that cleared funds have been in my account within 4-5 working days, and I get a note from my bank detailing the exchange rate obtained etc within 1 working day by post. This has been consistent irrespective of the figure.
I've since started a US$ account with them, but haven't actually paid any US bank drawn cheques into it yet. I'm told it won't make a difference to timing, the item will simply not need to be negotiated.
I'll check out HSBC, thanks
[edited by: sji2671 at 11:24 am (utc) on Oct. 22, 2004]
Get the cheques "negotiated" rather than "collected".
That's interesting Macro - looks like I have got my terminology wrong then.
I get a note of each "negotiated item" from my bank, so I guess they are being "negotiated".
Purely out of interest, what does it mean exactly? Do they sell the cheque on to a US clearing bank rather than send it through clearing themselves?
Yes, I use the online service (I like it a lot apart from only keeping 1 year's statements). Fees are £4 for small transactions and £8 for bigger ones - not sure what the changeover point is but >$500 normally costs £8 - you can collect a few cheques and out them together for just one charge
Negotiated means you get the money within days so is obviously the one you want.
Each bank will have a limit for what they will be prepared to negotiated a cheque, my bank (HSBC) has a limit of £10,000
Any cheque over that is collected meaning you only get the money when they have confirmation that the funds have been transferred to them.
What you need to do is shop around for a bank that has a limit you will
be within and who's charges are acceptable.