Why does it take so long for a cheque to clear?

[MontyVeda]

Put a cheque in the bank yesterday and it's not going to clear until next Tuesday... in know two bank holidays are slowing it down a bit, but... why does it take 5 working days for a cheque to clear?
I'm pretty damn sure they won't be visually checking the signatures are genuine.

 

[hopless500]

Technically, it doesn't. But the longer they have the money in limbo, the more they make out of it.

 

[Roadrider48]

You used to be able to use a service called Transcash that, if you payed a small fee at the counter your cheque was cleared there and then.
But that was back in the day, so maybe it doesn't exist anymore.

 

[gavroche]

With my bank, Lloyds, if the cheque is also a Lloyds cheque, then it is cleared right away.

 

[Saluki]

Technically, it doesn't. But the longer they have the money in limbo, the more they make out of it.

My thoughts exactly.
I love your current avatar Hopless

 

[Cow Pie]

Banks don't actually deal with cheques, as strange as it sounds. All cheques in the UK are sent to the C&CCC (Cheque and Credit Clearing Company).
The time it takes for them to receive the cheque, process it and then get permission to release the money into another account all takes time.
Weirdly if you put a sharp crease in the cheque it can take an extra 2 days to be processed due to having to be hand/eye inspected.
My friends wife is financial consultant and apparently this is one of the most asked questions (and yes I asked her too)

 

[Mad Doug Biker]

Banks don't actually deal with cheques, as strange as it sounds. All cheques in the UK are sent to the C&CCC (Cheque and Credit Clearing Company).
The time it takes for them to receive the cheque, process it and then get permission to release the money into another account all takes time.
Weirdly if you put a sharp crease in the cheque it can take an extra 2 days to be processed due to having to be hand/eye inspected.
My friends wife is financial consultant and apparently this is one of the most asked questions (and yes I asked her too)

Just when I thought the Banking System couldn't get any more perverse.

 

[classic33]

The banks have to also "clear" the cheques on their systems. And at times it does involve the actual cheque being checked, by an actual person & not an automated system.
Main reason as given by @hopless500, is correct. Whilst the bank may not be open to customers on a Bank Holiday, there are still staff in, doing work you don't see.

 

[Louch]

Iv worked at Rbs and now bos, and the only bank holiday branch staff work is shortened hours on 2nd jan behind closed doors. The Easter weekends a weird one, being off Friday, working Saturday, off monday

 

[classic33]

Worked at the Halifax, Leeds, and worked a normal day on the Bank Holidays.

 

[Andrew_Culture]

It's because it takes four days to get from any one point in the UK to any other point.

 

[Louch]

In a branch or a head office site?

 

[classic33]

Just when I thought the Banking System couldn't get any more perverse.

Oh ye of little faith!

 

[classic33]

In a branch or a head office site?

Head office site.
Where I once cleared a cheque three hours earlier than it should have been cleared.

 

[Mad Doug Biker]

Oh ye of little faith!

D'ya blame us??