Cheques

What are cheques?

Cheques are just another way of paying money. A cheque is a piece of paper that you sign, with a specific amount of money on it, that you can use instead of cash or a debit card to transfer money into somebody else's account. Your bank will issue you with a chequebook full of cheques that are specific to your account, with your account number and sort code on them.

When should I write a cheque?

Cheques are actually very rare to use these days because most people do all of their payments via the Internet through Internet banking. You might need to use a cheque if you need to pay another person who can't be paid by a debit card or by a bank transfer. For instance, you might pay your rent by cheque.

What is clearing a cheque and how long does it take?

Clearing a cheque is a process that the bank uses to ensure that the funds are available before they transfer the money for that cheque across. That would generally take about five working days to do.