How long does it take for a cheque to clear in my account?
Image Clearing
All sterling cheques are processed via the Image Clearing Scheme – this scheme is much faster than the previous Paper Clearing Scheme and operates a two-business-day clearing cycle.
You'll normally need to wait 1 working day after the day you pay the cheque in for it to clear, so if you pay a cheque in on Monday (before 3.30pm) it will usually clear by Tuesday. However, if your cheque is returned unpaid by the drawer’s bank (i.e. the bank of the person who wrote the cheque) you will receive an advice of this via a letter.
The cheque clearing example below will help you work out when your money begins to earn interest, when money can be used, and when you can be sure that the cheque has cleared.
Cheque clearing cycle example
If you pay a cheque into your account on a Monday before 3.30pm (this is day one of the clearing cycle), you can expect to earn interest (if the account pays interest on credit balances) from Tuesday (which is day two of the clearing cycle). This is also the point at which this money will reduce the amount of your overdraft interest charged (if applicable).
Funds can be withdrawn from Tuesday (or earlier if you have a credit arrangement).
By the end of day two of the clearing cycle (i.e. Tuesday), the cheque is either paid or declined by the Drawer’s bank. Once it is paid it becomes cleared funds.
Pay after 3:30pm on a weekday or pay in on weekend
If you pay a cheque in on a Saturday or after 3.30pm on a working day, the funds will not clear for two further days.