A cheque can be used to pay your bills. You can obtain your own cheque book by opening a current account at any commercial bank. Commercial banks do not generally pay interest on current accounts, so you may want to keep a balance that is enough to cover the value of the cheques you plan to write.

What information should a cheque have?

A cheque will come with some printed information such as the cheque number, the bank it is drawn on and the name of the person writing the cheque. The remaining information you will have to write on the cheque. This would include the date, the person or entity you want to pay, and the amount you want to pay in words and figures.  To complete the cheque you will have to sign it in accordance with the signature you submitted to your bank. You should keep a record of the cheques you write and the balance you have left on your account so that you do not write cheques for more than the amount that is available.

How do cheques work?

When you pay someone with a cheque that person can go to your bank and obtain cash for it. The amount will be removed from your account and the paid cheque will be sent to you with a statement at the end of a specific period. The person you are paying can also deposit the cheque into their account. If the account for the person you are paying is at your bank the funds are usually available the same day. However, if the cheque is deposited at a bank other than your bank then the credit would be given but the funds will not be available until it is collected from your bank.

You can accept cheques as payment and cash or deposit them into your account.

Advantages of using Cheques:

• You can use the cheque to make payment for goods and services.
• It is safer because you do not have to walk around with cash.

Disadvantages of using Cheques:

• Your signature can be at risk to forgery.
• Some businesses may be reluctant to accept personal cheques as a means of payment.