How to Write a Cheque

14 September 2022 by National Bank
How to write a check

Although cheque use has declined a lot over the past decade, we haven’t seen the last of them yet. They’re still commonly used in Canada for certain types of payments, with hundreds of millions of them issued each year.

Although cheques are being used less in Canada, they are still the preferred means of payment for large amounts. The average value of a cheque transaction is $5,000, which is more than for any other method of payment, including cash, transfers and credit cards. Admittedly, this value is inflated by commercial cheques, where the average amount is much higher than for personal cheques. Cheques are still widely used for business-to-business payments and government payments (income taxes, property taxes, etc.). Canadians also often use cheques to pay their rent or daycare fees.

Writing cheques: A how-to guide

To be valid, cheques must be completed correctly. Use a pen with black or blue ink to make your cheque easier to read. Here’s what you need to know about each section of the cheque.

1. Enter the date

Cheques remain valid for six months. After this time, you usually won’t be able to cash them. Pay attention at the start of a new year, as a frequent mistake during this period is to write the previous year instead of the new one. If the date on the cheque is more than six months ago, it won’t be accepted.

What about postdated cheques? Though it’s sometimes handy to write a cheque with a future date, bear in mind that postdated cheques may still be cashed before the date written on them. Banks handle a large volume of cheques, which means that some can slip through the system. If you’re charged a non-sufficient funds fee because a postdated cheque was cashed early, you can ask your bank to reimburse you. The cheque may also be returned and the funds credited back to your account until the date written on the cheque.

2. Write the payee’s name

Never sign a cheque without entering the name of the payee. Otherwise, if your cheque is lost or stolen, anyone who gets their hands on it could write in their name and cash it.

3. Enter the amount

Start by writing the amount in numbers, separating the dollars from the cents with a period. Draw a horizontal line before the first digit of the dollars, so that no one can increase the amount of the cheque. Then write out the dollar amount in words. You can write the cents in numbers.

If you don’t have enough money in your account to cover the amount of the cheque, you’ll be required to pay an NSF (non-sufficient funds) fee. At National Bank, the fee is $45.

If you deposit a cheque at your bank that ends up being rejected for non-sufficient funds, you won’t have access to the amount requested. If your bank let you access the funds immediately, the money will be debited from your account balance. This could lead to an overdraft and interest being charged.

Explore our bank accounts

4. Add a memo, if you want

The memo section at the bottom of the cheque is optional. You can use this section to describe what the payment is for, e.g., by entering the number of the invoice you’re paying. If there’s ever a dispute about payment, it could serve as proof.

5. Sign the cheque

Cheques that are unsigned or where the signature is illegible cannot be cashed. Your signature must match the signature you provided when you opened your account. If there are any doubts, additional verifications may be required.

To reduce the risk of fraud, keep your cheques in a safe place and don’t sign them before you fill them out.

Is there a hold funds period when you deposit a cheque?

When you deposit a cheque for $100 or less, the funds are usually available immediately. For cheques over $100, the payee has access to the first $100, but the remaining funds may be held for 4 to 8 business days. This applies whether you deposit a cheque at a branch counter, at an ABM or using your mobile device.

This period allows your bank to check that the person who wrote the cheque has enough money in their account to cover it. This often involves making inquiries with another financial institution.

However, banks do not always apply a hold funds period. Clients in good standing with their bank can often access the full amount of the cheque straight away.

Since cheques are more costly to process and less secure than other means of payment, such as electronic transfer or Interac e-Transfer, it’s possible that cheque payments will disappear in future. But in the meantime, make sure you know how to write one!

Tip: When you need to deposit a cheque, there’s no need to visit a branch. Opt for the digital deposit feature in your National Bank app. Read our FAQ to learn more about digital deposits.

Check out the FAQ

Back
Terms of use
National Bank’s virtual assistant

When using our Virtual Assistant Service (the "Chatbot"), you accept these Terms of Use, which are subject to change without notice. Furthermore, you agree to consult these Terms of Use from time to time and acknowledge that your continuing use of the Chatbot means that you have accepted any changes that may have been made. Your continued use of the Chatbot means that you’ve read, understand and agree to these Terms of Use, the Terms of Use for our website, our Online transaction services, and to our privacy policy. You also understand any other agreements that you have with us will continue to apply when you use the Chatbot.

1. Our Services and your responsibilities

The Chatbot is an automated service which is integrated into our online banking platform.

The Chatbot is preprogrammed to answer general questions concerning the use of our online banking platform solely for informational purposes. The Chatbot is not able to answer questions on personal monetary transactions or products you hold with us.

By using the Chatbot, you understand and agree that:

  • The Chatbot does not provide financial advice or financial planning services.
  • The Chatbot does not conduct any banking transactions.
  • The Chatbot may not be able to answer all your questions. Therefore, it may not be able to provide you with the information you require. You must judge whether the answer provided responds to your question accurately. In the case of uncertainty, a customer service representative would be happy to help you. You can call us toll free at 1-888-483-5628 or 514-394-5555.
  • The Chatbot is not a complaint service. You cannot use the Chatbot to file complaints. If you have any complaints, you can contact us at the number indicated above.
  • We monitor, record and store the discussion that you have with the Chatbot to improve our interactions with our clients.
  • You will not provide the Chatbot with any confidential, personal, or private information. For example, you will not provide the Chatbot with your login information, PIN or other personal banking information.

2. Limitation of Liability

You acknowledge that we won’t be liable for any losses or damages that you may suffer as a result of your use of the Chatbot, including if the Chatbot is unavailable for any reason.

We cannot guarantee that the results obtained via the Chatbot will be accurate and reliable and that the answers provided will meet your expectations.

We will not be held liable for damages you incur as a result of:

  • Any delay, error, interruption or omission on our part or any other event beyond our control.
  • Any deficiency or technical error or any unavailability of our systems and wireless networks.
  • Your failure to meet any of your obligations.
  • Any amendment to or suspension, refusal or blockage of the Chatbot.
  • Any decision or measure you take in response to information and data obtained via the Chatbot.
  • Any other damages you may incur that are not caused by negligence on our part.

3. Language

You have requested that these Terms of Use, and related documents be drawn up in English.

4. Governing Law

These Terms of Use are governed and must be interpreted in accordance with the laws in force in the province or territory where you reside. If you reside outside Canada, the laws in force and the courts of competent jurisdiction are those of the province of Quebec.

Virtual assistant