How to Write a Cheque Step-by-step
5 minute read
The world of business is experiencing a significant shift in many aspects, including how companies manage their finances.
Many have shifted towards mobile banking, even setting up accounts with neobanks.
However, some may still require a paper cheque or simply just l appreciate the feeling of one. If you still like to manage your finances the traditional way, take a look below to learn how you can write a cheque and deposit a cheque in Singapore.
Types of cheques in Singapore
First, let’s walk you through two types of cheques you can write and receive in Singapore.
In Singapore, anyone has the right to clear a cash cheque.
You can just write ‘cash’ on the pay line if you don’t know the recipient’s name or if the name isn’t so important.
This means that whoever has the check can go to the bank and cash it. They don’t require a bank account, and they don’t need to confirm that they are the intended recipient. They can just take the money in cash.
A cash cheque is also known as an open cheque. As the name suggests, this cheque allows you to cash it on the spot and without the need for a registered bank account. This also means that anyone in possession of the cash cheque can clear it.
To indicate so, simply write ‘cash’ on the pay line. The recipient’s name is not required.
This is the sort of cheque you use if you just want one individual or company to be able to clear the check. A crossed check sends a clear indication to the bank that the sum is only to be deposited into the recipient’s account.
Simply follow the instructions and cross out the words ‘or bearer’ to make a crossed cheque. In the left-hand corner of the check, remember to draw two diagonal lines. This is what distinguishes it as a ‘crossed’ check.
Remember, the lines ensure that no matter who delivers the cheque, payment will be made solely to the person whose name is written on it.
A crossed cheque gets its name by:
- Marking the top left-hand corner with two diagonal lines and
- Striking off ‘or bearer’ in the cheque.
Unlike the cash cheque, this cheque only processes the payment to the recipient indicated in the receipt. This is regardless of who cashes in the cheque. As such, it is a more secure method of doing a cheque transaction.
Writing your cheque
Singapore has made it very convenient and easy to write a cheque. The process is simple and consists of only five steps in total.
- First, write down the date. This is the date when you’re filling the cheque and not. the date for when you plan to give it to the recipient.
- Write down the sum you would like to pay. Remember, both in numbers in the right box and in words under the recipient’s name. Both numbers have to match.
- Write the person’s or company’s entire name, as it appears on their invoice or bank statement. For cash cheques, only the words “CASH” is needed.
- Remove (cross it out) the word ‘or bearer,’ which signifies that the cheque can only be cleared by the intended receiver. Draw two diagonal lines on the upper left-hand corner of the cheque to make sure the bank understands it’s exclusively for the intended recipient. This only applies to crossed cheques.
- Sign your cheque and that’s it.
Once you’re done, you should make a record of the payment for your own safety and security of funds.
You (or the recipient) won’t be able to spend the money twice if you record the payment since the funds won’t be available in your account until the check is deposited or cashed, which could take a long time.
Depositing your cheque
Not only is it convenient and easy to write a cheque in Singapore, but it’s also easy to deposit one.
Cheque deposit and clearing timeframes are consistent regardless of whether your bank is POSB, OCBC, DBS, or UOB.
As a result, you can deposit your check at any bank branch or one of the bank’s rapid check deposit boxes. The deadline for clearing checks is 3.30 p.m.
You must deposit the check at a bank where you have an account, not the bank indicated on the top of the check.
If you receive an OCBC cheque but don’t have an OCBC account, don’t be alarmed. You can deposit it into any of your bank accounts, including DBS.
When a bank gets a check, it will send a picture of the check to the bank that is receiving the funds. This allows you to release the money and have it credited to your account. Cheque clearing is the term for this procedure.
Keep in mind that clearing checks can be done only on business days.
Is there an easier way?
If this entire process appears difficult and cumbersome, that’s because it is. There are numerous easier alternatives to manage your finances, and the Sleek Business Account is one of them.
This provides a new sense of business banking without any hurdles.
Sleek Business Account
Your Sleek Business Account is not just another regular business account.
The main benefits you enjoy with an SBA include sending and receiving money as soon as you finalize the setup process. You also get to enjoy automatic bookkeeping and there are no monthly fees or initial deposits and hidden fees.
Moreover, you will get an account, bookkeeper, and tax manager all in a single package. This is basically everything your company will need to operate.
On top of that, Sleek’s team of experts will always be by your side. We will run your back office using our top-notch tools, and every single step of the way will be secure and transparent.
Now you know how to write and deposit a cheque in Singapore.
Nonetheless, you should know how to open a bank account in Singapore. Singapore is moving toward a cheque-free future and you should be ready for it too.
Regardless of your preference, the need to digitize your business is an important factor in running a successful business. This is why you should still consider opening a bank account in Singapore as the entire business landscape moves toward a paperless future.
And we can help. If you need any further help or want any questions answered, feel free to contact us. Our experts are at your service, waiting to help you.