Cheques and clearing

Other than cash, cheque used to be the main form of payment for goods or services. With the increase in popularity of Debit Cards, cheques are now being phased out, so the chances are that you may never get the opportunity to write one. However if you do…

1. Write the name of the person you want to pay
2. Write the amount you want to pay in words here – add the words “only” at the end to ensure that no changes can be made after you have handed the cheque over.
3. Write the amount you want to pay in numbers here
4. Write the date here
5. This is where you sign your name – make sure you can do this signature again and again!!
6. This is the cheque book stub where you keep a record for yourself as to who you paid, how much and when
7. It can take up to 5 working days for a cheque to clear through a bank and you need to have sufficient money in your account to cover the amount of the cheque. Otherwise you get what is known as a bounced cheque which will costs you a financial penalty.