The 'Animated Guide to the Cheque Clearing Process' is a two-minute film that clearly explains how a cheque is cleared - showing how, when and why cheques are moved around the country as part of this process - and what happens if a cheque 'bounces'.

The film also covers information on when a cheque earns interest, when cheque funds can be withdrawn and when funds from a cheque can no longer be reclaimed by your bank. An industry-wide agreement, known as 2-4-6, was introduced two years ago that sets maximum timescales for each of these stages.

Angela Thomas, Managing Director of the Cheque and Credit Clearing Company, said: "Despite the fact that around half of us in the UK continue to receive cheques, our research shows that not many of us are actually aware what happens to a cheque when it is paid into an account. Our online film provides an easy-to-follow guide as to how the cheque clearing works, and can help everyone understand the key stages of this process."

The market research also revealed that although the 2-4-6 timescales have been in operation since November 2007, very few people understand how these work in relation to the cheque clearing process. Only 10 per cent know when they can expect to earn interest on money paid in by cheque (which is no later than two days after paying it in) and just 23 per cent of cheque recipients can identify when they are able to withdraw money (no later than four days for a current account or six days for a savings account). Over three-quarters of cheque recipients (78 per cent) thought that the time when they could be sure a cheque could not bounce was sooner than it actually is (it is at the end of the sixth working day after paying the cheque in).

Although the industry's commitment to the 2-4-6 timescales was clearly set out in The Banking Code - which ceased to exist at the end of October - customers can be reassured that the commitment remains in place. Additionally, to mark thhe fact that 2009 is the 350th anniversary of one of the earliest handwritten cheques known to be in existence in the UK, the Cheque and Credit Clearing Company has recently produced a comprehensive publication - Cheques and Cheque Clearing: An Historical Perspective - which includes sections covering: the history of the cheque; the evolution of the clearing process; the creation of the Cheque and Credit Clearing Company; and key dates during the 350-year lifetime of the cheque.

You can watch the film here: