How Long Does It Take for a Local Check to Clear?
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Cashed Where Drawn
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The length of time a local check takes to clear your account depends on when and where the check is cashed. A check must be cashed for the recipient to receive the money or deposited into an account to receive credit for the amount of the check. The individual to whom the check is written has two options: depositing or cashing the check at the financial institution where he does his banking; or taking the check to the financial institution where it is drawn to cash it. If the check is taken to your local financial institution for cashing, it will clear your account immediately. The teller will draw the money directly from your checking account and give it to whoever presents the check for payment. The check may be presented the same day it is written.
Cashed at a Store
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Some stores cash checks written to individuals. If your check is presented to a store for cashing, the length of time it takes to clear your checking account depends on several factors, including how soon the check is presented for cashing, how soon the store makes its deposit, and where the store banks. If the store banks where you do, the check could clear within one or two days. If the store banks somewhere else, the check could take two to seven days to clear your checking account.
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Cashed at Another Bank
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When a check is presented for payment at a financial institution other than the one where it is drawn, it must be processed and sent through one of the major check clearinghouses. The check is encoded with the amount it is written for by your financial institution or another that it pays to encode its checks. Encoded checks are sent in batches, usually at the end of each business day, to check clearinghouses. It can take two to seven days for a check to clear the bank where it is drawn.
Electronically Debited
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Some utilities, phone companies and credit card companies electronically clear your check from your checking account the day it's received. Checks sent locally in first-class mail may take one or two days to arrive at their destination. Therefore, if you send your check as a payment to a vendor that uses electronic check clearing, your check could clear your account in one or two days.
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- Photo Credit check and pen in close up image by Alexey Klementiev from Fotolia.com
