I noticed the thread on bank interest;
I was advised by our service manager (Nedbank), of the form to be signed for uncleared effects. As we've had this account for over 22 years, I queried why should we be signing forms, when we've been with you for years. His reply, Nedbank had been fighting a case in court over uncleared effects. Nedbank lost 1M in that, this prompted them to get their paperwork in order.
As majority of our customers EFT, some do send cheques.
Now with most business accounts not earning interest, current a/c's are left with bare min, balance transferred to interest earning a/c.
My thoughts: e.g. OD 1M, balance 200,000.00, uncleared effects 199,000.00. Now maybe wages need to be paid R4000.00 - doesn't that imply one's using the OD. Therefore interest could be charged on OD?
Nedbank say this uncleared effects will be sorted, but management have to make the final decision.
Am I losing the plot on this?