How do I read a cheque?

Here's how to read a cheque: The date shows when the cheque was issued, or for post-dated cheques, when it can be cashed. The name written on the line titled "Pay to the order of" is the recipient, which is the person of organization to whom funds are being sent. The box to the right of the recipient's name shows the amount (in dollars/cents) being deposited into the recipient's account. Beneath the recipient's name is the amount written out in words . The line on the bottom right side of the cheque shows the sender's signature . The "memo" line on the bottom left of the cheque is for notes, which can be anything including a personal message or directions on how funds are to be used. This field is optional. The numbers at the bottom of the cheque show which of the sender's cheques were used as well as the transit (bank branch) number, institution (bank) number and account number for the sender's account. Before you can cash a cheque, you'll need to sign the back of it. This is also known as "endorsing" the cheque.

Where is the account number on a cheque?

The bank account number on a cheque appears at the bottom after the three-digit cheque number, five-digit transit number and three-digit institution (bank) number.

How do I find my bank account details?

You can find your bank account details—including your transit number, institution (bank) number and account number—by logging into your online banking portal and downloading a direct deposit form or by getting a printout of this form from your local bank branch. If you have cheques, you can also find your bank account details at the bottom. There, you'll find several strings of numbers starting with a three-digit cheque number followed by a three-digit cheque number, five-digit transit number, three-digit institution (bank) number and a seven to 12-digit account number.

What is a routing number?

A routing number is a combination of two banking numbers: A transit number and an institution number. The routing number can be found on cheques, but only for American banks. Routing numbers do not exist in Canada. Instead, Canadian banks use transit numbers.

How to find your bank routing numbers?

In Canada, your bank routing number is a combination of your transit number and your financial institution number. Your transit number identifies your bank branch location—where your bank is located in Canada. Your financial institution number identifies the bank. For instance, if you were looking for a routing number for TD and your branch was located in Toronto then the transit number is the branch number, let's say 11662 combined with the financial institution number, in this case 004. Combined, the number is 11662-004 and is the equivalent of a routing number. Keep in mind, US routing numbers and Canadian routing number combinations are not interchangeable.

How long does it take for a cheque to clear?

The maximum holding period for cheques at, or under, $1,500 is four to five days. For cheques over $1,500, the maximum holding period is seven to eight days. However, cheques often clear sooner than this. If you have a good, longstanding relationship with your bank, it's likely that you can go to a teller and have the funds processed promptly.

How do I deposit or cash a cheque?

To deposit or cash a cheque, you'll first need to endorse (sign) the back of it. You can then either bring it to your local bank branch or deposit it using a mobile app, though not all banking apps support this feature. To perform a mobile deposit, open your bank's mobile app and navigate to the cheque deposit screen. Then follow the prompts. Typically, you'll have to take a picture of the front and back of your cheque, and then enter information such as the amount being deposited and the account you want the funds to go into. Once this is done, you can submit the information and pictures, and your cheque will be processed.

How long is a cheque valid for?

According to Payments Canada, which regulates the process of clearing and settling financial transactions in Canada, regular cheques and provincial government cheques are stale-dated after six months and can't be deposited. Your bank can decide—at its own discretion—whether it will honour stale-dated cheques, though it's under no obligation to do so. In contrast, Payments Canada rules state that money orders, bank drafts and federal government cheques never stale-date.

Can I deposit a cheque written out to my maiden (unmarried) name?

Payments Canada, which regulates the process of clearing and settling financial transactions in Canada, has no official stance on whether the name on a cheque has to match the name of the account holder who is depositing the cheque. This is up to each financial institution's individual policies. Most banks will accept cheques made out to your maiden name as long as you can prove that you're the same person. You'll need identification such as a driver's license or a passport and probably your marriage certificate as well.

How do I write a cheque with cents?

In the numeric box, simply write out the full amount including both dollars and cents (for example, "$1452.73"). Then, in the text box, write out the dollar amount and enter the cents on the far right part of the line where the cheque shows /100 Dollars. For example, "one thousand, four hundred and fifty two--------- 73/100". See our sample cheques above.

How do I void a cheque?

To write a void cheque so you can be paid with direct deposit, you can simply write the word " VOID" across the cheque in clear, large letters, to cover all the primary fields of the cheque. And if you bank online, you may also be able to download a void cheque directly from your account to then submit to your employer, landlord, or whomever else may need one.

What do cheque numbers mean?

The numbers on a cheque allow the recipient bank to "find" your money and withdraw the amount specified on the cheque. Here's a quick breakdown of what each cheque number means: The cheque number reflects the sequence of cheques in your cheque book (the first cheque will be 001, the second will be 002 etc.); the transit number identifies your bank branch, which is likely where you opened the account (and is similar to the nine-digit routing number used by US banks); the institution number identifies your financial institution; and finally, the account number identifies your bank account.