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How do cheques work? Can I lodge cheque from other bank in my own?

  • 05-08-2016 2:02pm
    #1
    arleitiss
    Registered Users, Registered Users 2 Posts: 3,515 ✭✭✭


    Hey, I got a Cheque from AIB bank, I am with PTSB, can I lodge it in any branch of my own bank? Or can I maybe drop into AIB and cash it out directly with cash on hand?

    Thanks.


Comments

  • #2
    Spocker
    Moderators Posts: 6,864 ✭✭✭Spocker


    Theres a long-winded answer about how cheques work, but heres the short one:

    Yes, you can lodge the AIB cheque to your PTSB account, and it can take up to 10 working days to clear, even though it may appear in your account straight away, so don't take out any funds until after then.

    http://www.howbankingworks.ie/index.php/banking-instruments/cheques


  • #3
    coylemj
    Registered Users, Registered Users 2 Posts: 25,476 ✭✭✭✭coylemj


    Spocker wrote: »
    Yes, you can lodge the AIB cheque to your PTSB account, and it can take up to 10 working days to clear, even though it may appear in your account straight away, so don't take out any funds until after then.

    If you are a well-established customer, your bank will typically allow you to draw on the funds because they know that in the unlikely event that the cheque bounces, they will get the money in the end plus there is a severe penalty these days if a cheque that you lodged bounces so people have an incentive not to lodge dodgy cheques.


  • #4
    coylemj
    Registered Users, Registered Users 2 Posts: 25,476 ✭✭✭✭coylemj


    arleitiss wrote: »
    Hey, I got a Cheque from AIB bank, I am with PTSB, can I lodge it in any branch of my own bank? Or can I maybe drop into AIB and cash it out directly with cash on hand?

    That's all but impossible these days, unless someone in the branch knows you personally and is prepared to take the risk on your behalf because if the cheque bounces, they have no comeback against you, you're not an AIB account holder and the name and address you give could be false.

    You may say that they can look up the balance in the account since it's with them and that's true but they don't know how many other cheques drawn on that account are in the system so they typically will not hand over cash for a cheque, it has to go through clearing.


  • #5
    Speedwell
    Registered Users, Registered Users 2 Posts: 3,809 ✭✭✭Speedwell


    Simple answer: That is what a cheque is for. You lodge it in your bank, and your bank sends it through a clearinghouse to the issuing bank to get paid so it can put the proceeds into your account. Your bank may choose to provisionally allow you access to the funds based on your history and the other bank's history, but it may not choose to do so. You can nearly always cash a cheque in your bank if you have enough funds to cover it in case the other bank does not pay (for any reason including insufficient funds in the cheque writer's account).


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