Quote:
Originally Posted by robgreaves
The modern day banks obviously saw this rather british historical oddity as a nice little earner - when you write the cheque, your money comes out of your account very quickly indeed as soon as your cheque is presented at the recipients bank, but is held by the bank to earn what we brits call a 'nice little earner' in investment return interest. They have the historical 3 to 5 days to invest your money, keep the profits, then give the recipient of the cheque the money. Thanks very much.
Regards,
Rob.
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Amazing how the time for "clearance" also gets applied to electronic transfers. When I do a direct credit - money instantly leaves my account but does not appear in the recipient's account for at least 2 days. How do they justify this? (Besides being able to use the payee's money for their own purposes for those 2 days).
Cheers