Cheque clearing in banks

[xorionn]

if say you bank in $300K cheque on Saturday, it is due to clear on Monday and you'll receive your $300K in your bank account only after Tue 2pm.

Say it's Monday... if your bank account only have $250K, however if you need to issue a $500K cashier order on Monday afternoon, what can be done to ensure you're able to issue $500K cashier order (say don't have other cash in other banks)

 

[Majestic12]

No way around it.

In the first place your understanding is flawed - cheques deposited on a Saturday will always clear on the coming Tuesday after 2pm.

 

[Squaredot]

Don't deposit your 300k cheque on Saturday. Bring it to your bank on Monday for "marked cheque". There is a service charge for marked cheque.
You will get 300k credited on Monday if the cheque is good for payment.

 

[Trazora]

Don't deposit your 300k cheque on Saturday. Bring it to your bank on Monday for "marked cheque". There is a service charge for marked cheque.
You will get 300k credited on Monday if the cheque is good for payment.

Does it work that way? Pardon me if I am wrong I thought the cheque need to be marked by the issuer. And even if the cheque is marked does it mean it can be clear and the 300k credited in the same day? Even cashier order has the same clearance timing as the usual cheque.

 

[LingBit]

Is the cheque crossed? If it is not, you can encash the cheque directly at the counter. Not sure whether all amounts can be done though.

 

[doody_]

What is a marked cheque?

 

[beautyseek]

Or you can just try to FAST the monies to the other bank..multiple times of $50k subject to aggregate daily transfer limit. eg hsbc allows up to $1m daily if i am not wrong. So u need to do 6 FAST transactions of $50k to get $300k out. But very instant!

Then you have to try to stop the cheque if you have already issued... not sure if this will cost you some charges

 

[zero_hero]

I have a citibank US$50 cheque from doing online surveys, which was sent to my address with my name on it. I went to OCBC, DBS to deposit my cheque but they said the amount is not even enough for the clearing fee. Citibank doesn't allow me to offset my cc bills with this cheque too...

Please help!!

Or you can just try to FAST the monies to the other bank..multiple times of $50k subject to aggregate daily transfer limit. eg hsbc allows up to $1m daily if i am not wrong. So u need to do 6 FAST transactions of $50k to get $300k out. But very instant!

Then you have to try to stop the cheque if you have already issued... not sure if this will cost you some charges

 

[doody_]

I have a citibank US$50 cheque from doing online surveys, which was sent to my address with my name on it. I went to OCBC, DBS to deposit my cheque but they said the amount is not even enough for the clearing fee. Citibank doesn't allow me to offset my cc bills with this cheque too...

Please help!!

Cool story, bro.


DBS:

Will I be charged for depositing a foreign currency cheque?
Please refer to the table below:

USD cheques cleared via
Singapore USD Cheque
Clearing System

Free

Other Currencies (non-SGD) and USD (non- local clearing)

1/8% (min. S$10, max. S$100) per cheque

 

[zero_hero]

Mine is the US Citibank. I am quoted the 1/8 thingy. They quoted $60+ for the clearing fee, which my cheque is not even enough to clear...

Cool story, bro.


DBS:

Will I be charged for depositing a foreign currency cheque?
Please refer to the table below:

USD cheques cleared via
Singapore USD Cheque
Clearing System

Free

Other Currencies (non-SGD) and USD (non- local clearing)

1/8% (min. S$10, max. S$100) per cheque

 

[doody_]

DBS is doing it for $10.

 

[chongpang]

Don't deposit your 300k cheque on Saturday. Bring it to your bank on Monday for "marked cheque". There is a service charge for marked cheque.
You will get 300k credited on Monday if the cheque is good for payment.

what is a marker cheque?

 

[GrandJedi]

Cheque Clearing

Does the bank always make a day of interest from you when it comes to cheque clearing?

Scenario:

I issue a $1M DBS cheque from my account to my SCB account. I deposit the DBS cheque before 330pm on Monday at a SCB branch. The cheque will clear after 2pm on Tuesday.

From what I understand the amount will be deducted from my DBS account on Monday, so I will not get any interest on the $1M from DBS for Monday. But the amount only shows up in SCB on Tuesday. Thus, I lost my interest on $1M for Monday.

If my understanding is correct, then the banks are making lots of money from this process!

Thanks.

 

[tmkedmw]

Does the bank always make a day of interest from you when it comes to cheque clearing?

Scenario:

I issue a $1M DBS cheque from my account to my SCB account. I deposit the DBS cheque before 330pm on Monday at a SCB branch. The cheque will clear after 2pm on Tuesday.

From what I understand the amount will be deducted from my DBS account on Monday, so I will not get any interest on the $1M from DBS for Monday. But the amount only shows up in SCB on Tuesday. Thus, I lost my interest on $1M for Monday.

If my understanding is correct, then the banks are making lots of money from this process!

Thanks.

More important is the value date of your $1 mil at scb. If value date is Monday, there is no loss of interest.
U can check with scb on value date, sometimes online statement shows value date too.

Clearing date on Tuesday simply means you can't move your money in scb account until the cheque is cleared by Tues 2pm. Moving as in you can't withdraw in full or partial.

 

[highsulphur]

More important is the value date of your $1 mil at scb. If value date is Monday, there is no loss of interest.
U can check with scb on value date, sometimes online statement shows value date too.

Clearing date on Tuesday simply means you can't move your money in scb account until the cheque is cleared by Tues 2pm. Moving as in you can't withdraw in full or partial.

I think scb will receive your funds on Monday but you can't access it until Tues. Scb will be paying the interest on Monday

 

[GrandJedi]

I think scb will receive your funds on Monday but you can't access it until Tues. Scb will be paying the interest on Monday

I called the helpline and they dont seem to know exactly when the amount is valued... cannot give me a straight answer. Could this possibly vary from bank to bank? Cannot find anything on ABS website too.

 

[MrHighlander]

Reviving an old thread

When will the cheque money be deducted from the payer’s account ? Let’s say the payee deposit the cheque today, what time tomorrow will be payer’s account be deducted ?

 

[fjournal]

Reviving an old thread

When will the cheque money be deducted from the payer’s account ? Let’s say the payee deposit the cheque today, what time tomorrow will be payer’s account be deducted ?

Usually is the morning

 

[peppermint7]

Usually is the morning

I ever issued a POSB cheque (eg.50k) to another bank. As the amt is large so I didn't leave the amt with POSB. Instead I monitor every now and then cos I am unsure when the amt would be deducted. Then after midnight, I saw my POSB current account become deficit 50k. So I hurry transferred the amt from my other bank into my POSB current acc. Somehow things were matched and settled. Didn't receive any penalty / fine. That's a one off experience for me. Mayb I have monitored it closely and have transferred promptly thus all is well. Not to encourage anyone to do the same though.

 

[tmkedmw]

Reviving an old thread

When will the cheque money be deducted from the payer’s account ? Let’s say the payee deposit the cheque today, what time tomorrow will be payer’s account be deducted ?

Say payee presented the cheque to bank A on say Monday. You, as the payer, will get the cheque amount deducted on the same Monday.

Payee can only move the money after 2pm Tuesday (after the cheque is cleared).