Incoming and Outgoing Payments
To keep you updated on our existing processes, we have provided specific cut-off times for all incoming and outgoing payments and outlined our standard cheque clearing processes.
Paying money into your account
When you pay in cheques drawn on other banks, they are processed through a standard cheque clearing cycle.
The standard cheque clearance process on all sterling accounts refers to:
- the time taken before funds paid into an account by a cheque can be withdrawn, or
- the time taken before interest starts to accrue on funds paid into an account by cheque, this is referred to as “Cleared for Interest Payment purposes”.
Cheque Clearing Cycle on your Account
Information relating to sterling cheques issued in the UK
From the 30 October 2017 a new “Next Business Day cheque clearing cycle” will be introduced for all banks in the UK. This will run alongside the existing “6 Business Days cheque clearing cycle”. The clearing cycle used will depend 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.
This is how the current cheque clearing cycle works for a Sterling cheque paid into a Sterling account on a Tuesday morning:
More information about how the cheque clearing cycle works across UK banks can be found on the payment scheme website managed by the Cheque and Credit Clearing Company.
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 T&Cs for that method of deposit for more details.
Timescales for bulk cheque schemes may be different. Please contact your relationship team for further information.
Cheques drawn on Lloyds Bank customers
The same cycle applies to cheques drawn on other business customers who bank with Lloyds Bank, except when the cheque is paid into the branch it is drawn on. In this case, subject to funds being available in the drawer’s account, funds will be processed as cleared and available for withdrawal via any channel the next day.
Cheques issued by Lloyds Bank personal customers normally clear the same day if paid into any Lloyds Bank branch. If this is not possible for any reason, the cycle outlined above will apply.
Cheques issued outside the UK
Cheques drawn abroad in sterling and/or foreign currency may be paid in, but will follow a different process. Please contact your Relationship Manager for further details.
Cheques drawn in Scotland and Northern Ireland
Cheques drawn on banks/branches in Scotland and Northern Ireland clear in the same timescales as English and Welsh cheques. The cycle may be longer when paying in through other financial institutions or agents (such as Post Offices) as the cycle will not start until we receive the cheques.
Making payments by cheque
If you make a payment to someone by cheque, and they deposit that cheque at your own branch, the money will leave your account on the same day.
If it is paid in at another Lloyds Bank branch or Bank of Scotland branch or another bank, the money could leave your account from the next business day. You should always ensure you have sufficient funds in your account prior to issuing a cheque.
For added security, if you make a cheque payable to a utility company (e.g. water or electricity companies) or to a financial company (e.g. a bank or credit card company), please include your account number after the company name on the payee line of the cheque.
For cash withdrawals/encashments, subject to your agreed credit limit, you can write a cheque with the word 'cash' on the 'pay' line, and hand it over at the counter at any branch of Lloyds Bank.
You will need to provide some form of identification such as a Photo ID driver’s licence or passport.
If you wish to withdraw a large amount of cash, please let us know in advance. If you cash a cheque at a Lloyds Bank branch, the money will leave your account on the same day.
How to stop a cheque
Sometimes, you may need to stop a cheque being paid. To do this, you should contact your service centre as soon as possible, giving details of any replacement cheque that you write.
The new faster cheque clearing times under the Image Clearing System mean you have less time if you want to stop a cheque.
To stop a cheque, we will need to know:
- cheque number
- date of issue
A fee is payable for stopping a cheque, unless the cheque has been reported as lost or stolen.
Please follow this same process and let us know immediately if you have lost or have had your cheque book stolen.
Returned cheques and other items
If we need to return a cheque you have written or another item drawn on your account due to lack of funds, we will contact you directly with the information and details of any charges.
If we have been advised that a cheque you have paid into your account is being returned unpaid, we will write to you with details of the unpaid cheque. This will usually be within two working days of the advice to us.
If you have been issued with a cheque that is more than six months old you should ask the person you received it from to write a new one and destroy or return the old one to them.
At our discretion, we may or may not choose to process cheques that are more than six months old. Please do not assume all cheques unpaid will be returned to you because it was written more than six months ago. If you do not wish for a particular cheque to be paid then it should be stopped.
Please contact your Relationship Manager, service centre or your local branch services for further information.