Lodging a Sterling Cheque

[paper-folder]

I'm looking for suggestions please for the best value way to lodge a sterling cheque, approx. value £18,000. The cheque is crossed 'a/c payee' and is made out from an AIB branch in the UK. I believe that this will be a once off for me, but given the amount is significant, I don't mind putting in a bit more effort than merely handing it over the counter of the local bank branch. Thanks in advance.

 

[RedOnion]

I don't mind putting in a bit more effort

Short of relocating to the UK, and opening a bank account there?

Is it possible to return the cheque and ask for a funds transfer instead? I'm not aware of any efficient way of dealing with a cheque.

 

[SparkRite]

I don't mind putting in a bit more effort than merely handing it over the counter of the local bank branch.

In agreement with RedOnion, I really don't think there is much more other than 'handing it over the counter of the local bank branch' you can do with a crossed cheque.

 

[paper-folder]

Short of relocating to the UK, and opening a bank account there?

There's an idea that got me thinking! Would opening a sterling account with a bank here be the same thing?? If I could get it lodged, I could do the foreign exchange through one of the currency exchange specialists couldn't I?

 

[Baby boomer]

If you live close to the border (or even if you don't) just pop over and open an account. Very straightforward - just passport and utility bill required. Lodge your cheque and then use TransferWise or Revolut.

 

[RedOnion]

@paper-folder indeed, I had thought they would only allow electronic payments, but it looks like it might be possible.

If you lodge into your EUR account, the fees would be something like this:
Cheque collection €15.20
FX Commission €6.35
FX spread over market rate c. 1.5% £270 (c. 320 euro) [Edited to fix currency typo]

VS opening a GBP Account with AIB:
Quarterly fees: £10.00
Cheque Lodgement £0.30
Transaction fees to transfer £x?
FX Spread with whoever you exchange it with €x?

 

[paper-folder]

Thanks RedOnion.
It looks like Currency Fair would give me a free transfer as a new customer and they say that their average margin is 0.45% which is £81, so that route might only cost £91.30 compared to £291.55 with a direct lodgement. Worth checking out alright!

 

[noproblem]

paper-folder,
just wondering if it's a payment from a recent takeover. I also got one, lodged to UB who asked me could I get the co to transfer directly into my Ulster bank a/c. I didn't even consider asking them to do this. I lodged it in my UB account. They told me that it will take about 5/6 weeks for the amount to transfer to my Irish account.

 

[paper-folder]

Thanks noproblem. Yes, it's related to a takeover and unfortunately the option of nominating a bank account and getting an electronic transfer wasn't given. To be honest I was a bit surprised when the cheque arrived. Having got a few big envelopes prior to the event, I was expecting some sort of notification that it had gone through.

I was aware that the clearance could take a considerable period alright from other discussions on this site. I'm not so worried about that but I do want to get the best return on it, and by the sounds of things there is a significant cost if it's lodged and changed directly in a bank.

 

[Peanuts20]

Note also that the cheque will be likely send for "collection" which is a manual process outside of the normal cheque clearing cycle and it may take a number of weeks for it to clear as a result

 

[paper-folder]

paper-folder,
just wondering if it's a payment from a recent takeover. I also got one, lodged to UB who asked me could I get the co to transfer directly into my Ulster bank a/c. I didn't even consider asking them to do this. I lodged it in my UB account. They told me that it will take about 5/6 weeks for the amount to transfer to my Irish account.

FYI, I got on to the investor services company, asking why we weren't given the option of an electronic transfer or of payment in euro, the same as dividends. They said that the payment method and currency is dictated by their client and that takeovers are normally dealt with by cheque. They explained that if I had a real difficulty lodging the cheque, I could request to return it, but that there would be a lengthy delay. Re-issue and transfer fees of £63 and £25 respectively would apply as well as whatever fx margin the bank normally applied. He basically said, "Don't go down that route!"