The 2-4-6 system is now in force, setting two, four and six working days for each of the stages in the cheque clearing process – when interest begins to accrue, when the money is available to be withdrawn and when a cheque has finally cleared.

"For the first time, smaller firms have been assured that their money will be safely in their accounts within six working days," comments Len Collinson, the FPB's National Chairman. "This will enable them to be more assured in managing their cash flow with a far greater degree of clarity."

Angela Thomas, Cheque and Credit Clearing Company Managing Director, said:
"Although cheque use has fallen over the last few years, cheques remain important for certain customers in certain situations. Whether it’s a small business or someone selling a car, there are many occasions where cheques still get handed over. These changes will really benefit anyone paying in a cheque, offering them certainty and clarity on when the money has cleared and giving real peace of mind."

The changes are part of the new Banking Code, which is being fully implemented in March 2008, and will be monitored by the Banking Code Standards Board. To explain the changes, the Cheque and Credit Clearing Company and APACS have issued downloadable advice guides and a range of information for personal and business customers, available free from their websites, www.chequeandcredit.co.uk and www.apacs.org.uk.