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Cheque Clearing Process

The Future of Cheques

From 30 October 2017, a new 'Cheque Imaging' clearing process will be introduced for all banks in the UK. This will run alongside the existing '2-4-6' clearing process. The clearing process used will depend on which bank a cheque is deposited with, and the method of deposit.

We will introduce Cheque Imaging gradually, enabling quicker and more convenient ways of depositing cheques, such as via the Mobile Banking app. This is because instead of exchanging physical cheques, banks will  exchange digital images of cheques. In time, the '2-4-6' clearing process will be withdrawn altogether and all cheques in pounds will be cleared on the  next working day.

A quicker clearing time also means that when you have written a cheque, money will leave your account sooner than it does under the '2-4-6'  clearing process. You should always ensure you have sufficient funds in your account prior to writing a cheque. 

Cheque Clearing

The table below explains what happens while the cheque is being ‘cleared’ (collected from the other bank). We use one of the two clearing processes:

  • The ‘2-4-6’ process
  • The ‘Cheque Imaging’ process

How the 2-4-6 process works

If you pay a cheque in pounds into your account through a Lloyds branch on a Monday, you will see it in your account the same day. It counts towards any interest on Wednesday (2 working days), you can use the money on Friday (4 working days), and we cannot take the payment out of your account after the following Tuesday (6 working days).

Cheque Clearing Process

When will the payment affect any interest you get or daily arranged overdraft fee you pay?

When will the payment be available for you to use?

When can the cheque be returned unpaid?

Cheques paid in using the 2-4-6 clearing process at a:

  • Branch counter
  • Cash machine that accepts cheque payments in
  • Depositpoint (if available)
  • IDM (if available)

 

From the second working day after we receive the cheque.

From the fourth working day after we receive the cheque.

Up to the end of the sixth working day after we receive it even if you have already spent it. It may put you into overdraft.

From then on we cannot take money from your account if the cheque is returned unpaid without your consent, unless fraud has taken place.

How the Cheque Imaging process will work

If you pay a cheque in pounds into your account on a Monday, you will see it in your account the same day. It counts towards any interest and you can use the money on Tuesday by 11:59pm at the latest.

Cheque Clearing Process

When will the payment affect any interest you get or daily overdraft fee you pay?

When will the payment be available for you to use?

When can the cheque be returned unpaid?

Cheques paid in using the Cheque Imaging process

By 11.59pm on the working day after we receive the cheque.

From 11.59pm on the working day after we receive the cheque, at the latest.

Up to 11.59pm on the working day after we receive the cheque.