All cheques written and received by you go through the clearing cycle, a system used by the main British Banks to transfer money between accounts.
The clearing cycle used by the main banks changed in November 2007 and is now often referred to as the ‘2-4-6’ process (or ‘2-6-6’ for deposit accounts) as it sets a maximum time limit of two, four or six working days for each stage of the process after paying in a cheque.
This is how it works –
If you pay a cheque in on a Monday morning:
This does mean that a cheque can still be taken from your account for up to six days after you pay it in even if you have already spent it.
For our purposes, a working day lasts from 9.00am to 5.00pm, Monday to Friday, excluding Bank Holidays. Cheques or cash paid in after 5.00pm (sometimes after 3.30pm) won’t be processed until the next working day.
If you have any further questions about the clearing cycle, please ask your relationship manager or your local branch.
More information on this initiative, and how it applies across the UK Banking industry, is available at www.chequeandcredit.co.uk/246the Cheque and Credit Clearing Company.
On the 30 October 2017 a new “Next Business Day cheque clearing cycle ” was introduced for all banks in the UK running alongside the existing “6 Business Days cheque clearing cycle”. The clearing cycle used depends on which bank a cheque is deposited with, and by the method of deposit. From 30 October 2017, until the 6 Business Day clearing cycle is removed, both clearing cycles will be in operation. You should anticipate money from cheques you write leaving your account on the next Business Day; and money being cleared from cheques you deposit within 6 Business Days. You should always ensure you have sufficient funds in your account prior to issuing a cheque.
More information about how the cheque clearing cycle works across UK banks can be found on the Cheque and Credit Clearing Company websiteMore information about the cheque clearing cycle.
These timescales are industry guidelines. Interest calculations and the availability of funds may be earlier in certain circumstances.
Cheques paid in at a branch after 17:00 on a Business Day or any day which is not a Business Day may not begin to be processed until the next Business Day. Some branches have an earlier cut-off than 17:00. A notice will be displayed in such branches which will specify the earlier cut-off time. Cheques paid in via alternate methods than a branch will have different cut-off times. Please refer to the specific Terms & Conditions for that method of deposit for more details.
We're committed to helping British businesses grow and develop by giving them the support they need – our Business Charter will tell you more.
Businesses, new and established, will face fresh challenges and opportunities. Our comprehensive range of online business resources and tools are designed to help.
Internet Banking puts you in control of your finances, giving you time to concentrate on what is important - your business.
The products and services outlined on this site may be offered by legal entities from across Lloyds Banking Group, including Lloyds Bank plc and Lloyds Bank Corporate Markets plc. Lloyds Bank plc and Lloyds Bank Corporate Markets plc are separate legal entities within the Lloyds Banking Group.
Calls may be monitored or recorded in case we need to check we have carried out your instructions correctly and to help improve our quality of service.
Lloyds Bank is a trading name of Lloyds Bank plc, Bank of Scotland plc and Lloyds Bank Corporate Markets plc. Lloyds Bank plc. Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no.2065. Bank of Scotland plc. Registered Office: The Mound, Edinburgh EH1 1YZ. Registered in Scotland no. SC327000. Lloyds Bank Corporate Markets plc. Registered office 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no. 10399850. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278, 169628 and 763256 respectively.
Eligible deposits with us are protected by the Financial Services Compensation Scheme (FSCS). We are covered by the Financial Ombudsman Service (FOS). Please note that due to FSCS and FOS eligibility criteria not all business customers will be covered.