Your Mission Should You Choose toaccept it ... is to Get Financially Fit!


A cheque is a useful instrument to pay your bills. However, unlike a credit card, in order for you to pay with a valid cheque, you must have the corresponding amount of the cheque in your current account. In other words, the old saying that “I have money because I have cheques” is not true; you must have the funds in the account in order to write a cheque.

Getting your own cheques:

Once they are ready, the Bank will provide you with a cheque book that contains cheques with your account number and other relevant information. Inside that cheque book, generally on the cover of it, you will also see a place to keep track of the cheques you write, it includes the date, name of the person or company that you a writing the cheque to, and amount). Be sure to sign the cheque.


What does a cheque look like?

 Generally a cheque will include:

Image of a cheque

You will also see on the cheque:

Some cheques also contain a line on which you have the option to include the purpose of your cheque.

How does a cheque work?

Can people pay you with a cheque?

Even if you don’t have a chequeing account you may encounter people who ask you if it’s ok for them to pay you with a cheque. In order to accept a cheque from someone you must trust that that person has funds in his or her account.  Until the cheque clears, you have not been paid.  If the person doesn’t have sufficient funds in the account, the cheque will be returned to you and the bank may charge you a fee for processing a cheque that did not have sufficient funds.

Insufficient Funds

Keeping track of your cheques and knowing how much money you have left in your account is key. You will not want to write cheques where you don’t have sufficient funds (which means not having enough money in your account to cover the cheque) because this is costly. When a cheque is returned for insufficient funds, a bank generally charges you, the person who wrote the cheque, a penalty fee. Also, the person to whom you wrote the cheque might be dissatisfied or possibly you will also be charged a penalty fee by the institution to whom you intended the payment.

Let’s say you make out a cheque today to someone. The person/institution you gave it to might take some days to cash the cheque, and sometimes even months. When estimating your remaining balance in your current account, think about those cheques that you have signed but which have not yet been debited (subtracted) from your account at the bank.  You have subtracted them from your cheque book records but the banks has not subtracted from your account at the bank because the cheque has not been presented to the bank yet.

Different banks may offer various types of cheques. Talk to your Bank to see which one is most convenient for you.   

What if I lose a cheque?

Personal Financial Tips

  1. Pay your bills on time.
  2. Eat more at home and less out.
  3. Take your food to work.
  4. Forgo the ice cream store and pop popcorn at home.

More Financial Tips