Write a Cheque Against a Deposited Cheque
- Thread starter roker
- Start date
Depends on your bank, the main banks now will have it in your acc straight away but they may have a hold or a flag on your acc so that nothing can be drawn out until it clears, so basically it's in your acc for interest purposes from day 1 but you may not be able to move it
There's nothing to stop you writing cheques, in the same way as there is nothing to stop the bank bouncing them because you don't have cleared funds to back them. You would be charged fees for bouncing cheques and potentially damage your credit history
If you know the original cheque you deposited was going to bounce and you still wrote and issued cheques yourself, then as a previous poster stated, this can be held to be fraud.
Although the money from the cheque is showing in your account, the bank are still entitled to bounce the cheque for a number of days. For example, if you lodged an AIB cheque in UB on Monday, AIB get the cheque on Tuesday, they have until COB on Thursday to bounce the cheque and it could be the following Monday or Tuesday for the unpaid to hit your UB account, Hence why banks say it can take up to 7 days to ckear a cheque, although I believe the money is at least earning interest whilst it is waiting to clear( or at least that is what some banks say)
If you know the original cheque you deposited was going to bounce and you still wrote and issued cheques yourself, then as a previous poster stated, this can be held to be fraud.
Although the money from the cheque is showing in your account, the bank are still entitled to bounce the cheque for a number of days. For example, if you lodged an AIB cheque in UB on Monday, AIB get the cheque on Tuesday, they have until COB on Thursday to bounce the cheque and it could be the following Monday or Tuesday for the unpaid to hit your UB account, Hence why banks say it can take up to 7 days to ckear a cheque, although I believe the money is at least earning interest whilst it is waiting to clear( or at least that is what some banks say)
This is a chain that could go on. My daughter had to wait for her €40,000 cheque to clear before she wrote a €5,000 cheque to me, I have to wait until her cheque clears until I write a cheque, that's 5 + 5 +5 =15 working days now (3 weeks) from the original cheque. even though she uses the same branch as me.
It's not earning interest in my current account, they should not tell me I have it in the statement
It's not earning interest in my current account, they should not tell me I have it in the statement
I agree. Permanent TSB take 7 days to clear an AIB cheque, same as it was 20 years ago. Someone's making money on this time delay.
T
tenchi-fan
Guest
Was there?
It's not illegal to write a cheque even though you don't have money in your account.
You are probably referring to a case that actually involved fraud.