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BOI draft - "Clearing interest" on BOI account?!

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  • 16-01-2013 9:06pm
    #1
    Nervous Nigel
    Site Banned Posts: 240 ✭✭


    I've never heard the like of it.

    I lodged a BOI draft into my BOI current account yesterday. I went to withdraw a portion of the funds today and I was advised that "the draft hadn't cleared yet", that "it would take around four days for it to clear" and that I'd "be charged 'clearing interest' on the funds I was withdrawing until the draft had cleared".

    That is utterly ridiculous. What is there to clear. It's a Bank of Ireland draft!


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    #2
    Bank of Ireland: Linda
    Closed Accounts Posts: 719 ✭✭✭Bank of Ireland: Linda


    Hi Nervous Nigel,

    A bank draft is treated like a cheque and there is a clearing period. As with accessing any uncleared funds, there is interest charged until the funds have cleared.

    If you lodged the draft on Tuesday, the funds should be cleared for you on Friday.

    Thanks
    Linda


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    #3
    Nervous Nigel
    Site Banned Posts: 240 ✭✭Nervous Nigel


    Bank of Ireland: Linda wrote: »
    Hi Nervous Nigel,

    A bank draft is treated like a cheque and there is a clearing period. As with accessing any uncleared funds, there is interest charged until the funds have cleared.

    If you lodged the draft on Tuesday, the funds should be cleared for you on Friday.

    Thanks
    Linda

    Hi Linda

    Thanks for the response.

    That makes no sense at all. A draft is supposed to be akin to cash. There's no "does the payer actually have the funds" uncertainty involved.

    Somebody went into a Bank of Ireland branch with €10,000 in cash and purchased a Bank of Ireland draft for €10,000. I then lodged the €10,000 draft into my Bank of Ireland account.

    There should be no clearing period. Charging "clearing interest" is a disgrace. Even if the draft was an AIB draft, it would be a disgrace but the fact that this is all Bank of Ireland that we're talking about makes it completely outrageous.

    Regards

    Nigel


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    #4
    Bank of Ireland: Linda
    Closed Accounts Posts: 719 ✭✭✭Bank of Ireland: Linda


    Hi Nigel,

    Bank of Ireland procedure is to treat a bank draft the same as a crossed cheque. A bank draft is not treated as cash as the payer can cancel the draft, if needs be, before it is lodged.

    Due to this fact, as the draft is not cleared, clearing interest is applied to your account if you access the funds.

    Thanks
    Linda


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