# Lodging a cheque to yourself



## Savvy (8 Jun 2005)

If I lodge a cheque made out to me, my account is credited(pending the clearing of the cheque)

What if I write myself a cheque,my account will be immeditely credited(pending the clearing of the cheque,which will not hit my a/c for a couple of days). Is this correct?

This may get me over no funds until pay day on Friday!!


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## jhegarty (8 Jun 2005)

Savvy said:
			
		

> If I lodge a cheque made out to me, my account is credited(pending the clearing of the cheque)
> 
> What if I write myself a cheque,my account will be immeditely credited(pending the clearing of the cheque,which will not hit my a/c for a couple of days). Is this correct?
> 
> This may get me over no funds until pay day on Friday!!



my bank (aib) takes the money from the cheque account and credits the payee account as soon as the cheque is cashed... it doesn't become permanent until it clears , but the money appears to transfer immediately...


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## contemporary (8 Jun 2005)

the codes on the lodgement slip and the cheque will be the same, so no transaction would take place, the banks systems are too clever for that.

you might have more joy writig a cheque to cash but i doubt it

edit: some banks also credit the account but dont allow you to draw the cash until its cleared


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## Savvy (9 Jun 2005)

Tried yesterday in desperation!
I had another cheque to lodge, so I presented both of them.
Both lodged to the a/c immediately but also my a/c was debited for the cheque immediately also(actually the debit happened first, then the credit)
So at the end of the day, it has cost me a cheque(30c) and manual lodgement(20 or 30c).Thankfully my finances are better today....this bloody lark of saving for a deposit is painful!!


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## z107 (9 Jun 2005)

*this bloody lark of saving for a deposit is painful*

Why can't you just get another loan for the deposit? A friend of mine got a car loan for the deposit for his house.


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## Savvy (9 Jun 2005)

I'm not with a credit union and so I'd have to get a bank loan. This would show up on my credit report along with other loan I currently have.

Since the interest rate for car loans are lower I thought you'd need to show proof of buying it


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## Kegwan (12 Jun 2005)

>>Tried yesterday in desperation!

You must REALLY be desperate if you thought you'd get away with this... So presumably if it worked you would then withdraw all the cash and take a loan at punitive overdraft rates?


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## Savvy (16 Jun 2005)

If the cash had lodged to the a/c immediately I would have been able to access funds from my a/c(and I wouldn't have been overdrawn).
I thought the cheque might take a day or two to clear my account(I was due to get paid the next day) and so it would debit against my new balance.
So there would not have been any punitive overdraft rates been paid!


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## Theo Goon (17 Jun 2005)

You don't get it, Savvy. If you've no money in your account and write a cheque to yourself from the same account, you are overdrawing the account.


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## Theo Goon (17 Jun 2005)

Assuming you withdraw the funds immediately on cashing the cheque.


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## Savvy (17 Jun 2005)

Assuming you withdraw the funds immediately on cashing the cheque.

Why else lodge it!


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## ClubMan (17 Jun 2005)

When I lodge a cheque I can see on my account (a) the account balance and (b) the "available" balance and the latter will be less than the former by the amount of the cheque lodged until the cheque eventually clears at which point the two balances will be the same. As far as I know I cannot make withdrawals against anything but the "available" (i.e. cleared) balance so the approach outlined above would not magically give access to more cash than I actually had. I presume that this is similar with other banks (I'm with _PTSB_)?


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## Savvy (20 Jun 2005)

I've lodged cheques (with AIB)many times and could access cash immediately and the cheques would not have been from other AIB accounts.


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## ClubMan (20 Jun 2005)

Seems odd to me - I would have thought that the cash was not accessible until the cheque had cleared unless you were dipping into an overdraft.


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## MugsGame (20 Jun 2005)

AIB give value at time of lodgement but will take it back if the cheque bounces. This could lead to an unintended or unauthorised overdraft, but it's better than having to wait for the cheque to clear.


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## ClubMan (20 Jun 2005)

So why doesn't _Savvy's _scheme of lodging cheques from himself to his account not give him some free credit then? Presumably because the cheque clears immediately and the resulting debit cancels out the credit?


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## daltonr (20 Jun 2005)

I used to regularly lodge checks to my AIB business account and immediately write another check out of the business account to myself.   I.e.  get paid by client,  and at the same time as lodging client check write a monthly pay check to myself.

Once or twice the cashier said I couldn't do it and I told her I did it all the time and she got someone else to look at it - result - ALL OK.   I've never been unable to do it.

I've also lodged cheques to my current account and immediately withdrawn some of it at the ATM.  So it works on personal accounts too.

Obviously if the original cheque ever bounced it would start a domino effect.  
Hasn't happened yet though.  

-Rd


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## ClubMan (20 Jun 2005)

Lodging cheques made out by somebody else is one thing but _Savvy's _scheme specifically involves lodging cheques made out by the individual to the same account in an attempt to effectively benefit from free credit. It didn't work for _Savvy _and I presume that it would not work at all other than if the cheque was drawn on a different account altogether?


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## daltonr (20 Jun 2005)

Ah.... I originally read it that he was lodging a cheque from a third party that wouldn't clear for a few days but he wanted to write himself a cheque using the uncleared funds.  

If it were an AIB account (Don't know about other banks) he could lodge the third party cheque and immediately access it.   Although I've heard of people having problems with this in AIB,  I've always been able to do it.  You just have to explain to the cashier politely that they are wrong and you can do it.   A manager may have to sign to say it's ok,  and your history with the bank might prevent it.

Reading his post again and seeing that he wanted to write a cheque and lodge it to the same account it was written from, no,  this could not work.   I'd expect the cashier to refuse this transaction rather than process it and have him incur costs.

-Rd


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## bond-007 (20 Jun 2005)

Do they seriously look at the cheques as they put them thru that scanner yoke?

Anyways such a cheque would hit the account that day so you couldn't win anyways.


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## MugsGame (20 Jun 2005)

While we're on the subject of AIB and lodging cheques - has anyone used the lodgement facility available on a limited number of their ATMs? (And I do mean an ATM, not an in-branch QuickLodge machine.).

I put a cheque in an ATM a few months ago and it was never processed. AIB couldn't trace it and didn't seem concerned that this suggested a major problem with their internal procedures. 

Eventually I tired of the run-around and asked the drawer to cancel and reissue. 


Has anyone else had problems (or even succeeded) lodging through an AIB ATM ?

If the drawer had refused to reissue - what come-back would I have had?


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## Guest127 (27 Jun 2005)

as far as i know presenting cheques with no funds and trying to get a few days credit is know in banking circles as 'kiting' and is frowned upon. Mbna wont let  you pay off your credit card with an mbna cheque  and aib wont let you clear  your credit card with any kind of cheque.


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## CCOVICH (28 Jun 2005)

cuchulainn said:
			
		

> aib wont let you clear your credit card with any kind of cheque.


 
I presume you're talking about when you present a cheque at their branch, as opposed to sending one to their CC processing centre?

Up until I closed my BoI CC account, I had always paid my BoI CC bill by a cheque drawn on my AIB account.


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## RainyDay (28 Jun 2005)

cuchulainn said:
			
		

> Mbna wont let  you pay off your credit card with an mbna cheque


Which would be like trying to clear your own overdraft with a cheque drawn on the same account!


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## Guest127 (2 Jul 2005)

ccovich: rainyday has in one. aib wont let you pay an aib credit card bill with one of their own cheques.  and if you pay through an post it has to be cash. mbna let you pay by cheque but just not  one of theirs


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## CCOVICH (3 Jul 2005)

Hang on-do you mean that I can't pay an AIB cc bill with a cheque drawn on my AIB current account?  This doesn't seem correct?  RainyDay was talking about MBNA (who seem to offer a cheque book on their cc accounts?)


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## MonsieurBond (2 Aug 2005)

MugsGame said:
			
		

> AIB give value at time of lodgement but will take it back if the cheque bounces. This could lead to an unintended or unauthorised overdraft, but it's better than having to wait for the cheque to clear.


 
This is true - and non-AIB cheques can take up to *FOUR* working days to "_clear_". (I am still convinced that cheques "clear" within a day, and any delay imposed by the bank is just to allow them to keep the money in a high interest bearing account for a few days.  )

Be aware that AIB and most banks charge (or at least reserve the right to charge) interest on uncleared cheques, i.e. if you lodge a cheque then withdraw more funds than are in your account (prior to the lodgement actually being fully credited), you can be charged interest as it is akin to an overdraft.

In the U.S., banks even look at the date of the cheque - if you write a cheque today but your salary doesn't hit until tomorrow, when the cheque is presented, you could be charged uncleared interest if you did not have funds in the account to match the cheque amount on the date the cheque was written! I am not sure if any Irish banks do this here.


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