Banks charging "clearing interest"

(This discussion on clearing interest split to separate thread by moderator...)

ferrari06 said:

Thanks for the reply NHG, I will give that option a go and see what happens, Strangely enough cheques do go through immediately to my personal account and the funds are always available immediately, This is only for company cheques and not personal ones.

Thanks

D

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You should be aware that this is just a mechanism for the bank to charge you interest. They charge "clearing interest" if you use these funds they have advanced you prior to the cheque actually clearing.

Re: Getting my company cheque cleared or cashed

They charge "clearing interest" if you use these funds they have advanced you prior to the cheque actually clearing.

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Not on my personal account with AIB. Where you have seen clearing interest charged on a personal account?

Re: Getting my company cheque cleared or cashed

MugsGame said:

Not on my personal account with AIB. Where you have seen clearing interest charged on a personal account?

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It's charged on everyones personal account...you obviously haven't used the facility though. I've only ever seen it once. Say you've nothing in your a/c and no overdraft. You lodge a cheque for 2K and withdraw the cash straight away. AIB will charge you clearing interest as they've "advanced" you the cash before the cheque has cleared.

Thanks for your feedback, but I'm still sceptical.

Can you point to the terms and conditions that allow this? I could be wrong, so I'd like to know the details, so I can avoid it.

I've never seen AIB do this on my current account, and I'm fairly sure I've been in situations where it would apply (i.e. no overdraft facility, lodge a non-AIB cheque that's larger than my balance, transfer out value of cheque that day.).

Here's a link to AIB's broad terms and conditions for current accounts. It's mentioned about 3/4 of the way down.