Although they’re much less popular than they once were, cheque books still offer a number of benefits in certain situations.
Cheques provide a simple and secure way to make payments using the money in your transaction account. Once you write a cheque, the person you make the cheque payable to can deposit it into their bank account.
The cheque is then returned to your bank to be verified and approved, in order to make sure you have enough funds in your account to cover the transaction. If everything is okay, your bank will then withdraw the necessary funds from your account and authorise payment to the person who deposited the cheque.
This system makes cheques a much more secure payment method than cash in many situations, but it also means payment takes much longer than other modern methods. Cheques take a minimum of a few business days to clear after being deposited in your account, so they’re not ideal if you’re looking for fast payment.
Cheque books are still available on transaction accounts from almost every Australian bank, credit union and building society.
Not that long ago, you would have automatically received a cheque book whenever you opened an account, but with the rise of online payment options this is no longer the case. Instead, you will have to contact your bank or visit your nearest branch to order a cheque book, and in some cases you may have to pay a fee.
For example, CommBank customers who have the appropriate account can order a cheque book by phoning the bank or visiting their nearest branch.
Cheque books are available on everyday transaction accounts, providing another way to access the money in your account. Some banks offer cheque books with all their transaction accounts, while others will only offer them with specific accounts. Read the account terms and conditions or contact your bank for details on which accounts come with a cheque book.
Make sure to consider the following features when choosing a bank account with a cheque book:
The main issue to be wary of when choosing a bank account with a cheque book is fees. Some banks may charge a fee for each cheque you write, while others may only allow you to write a specific number of fee-free cheques in any given month.
For example, CommBank customers should be aware of two kinds of fees when writing cheques on personal accounts:
Meanwhile, if you bank with NAB and have a NAB Classic Banking, NAB Cash Manager or a NAB Retirement Account, you can write an unlimited number of cheques at no extra cost. As always, check the fine print to make sure you’re aware of any fees and charges that may apply.
Finally, remember that not only do cheques take a few days to clear, but the people you send them to may not bank the cheque immediately. So that you don’t get caught short, make sure there are always enough funds in your account to cover the cheques you have written.
Read Finder's review of the First Option Bank Kids Bonus Saver. Learn more about this account.
Read more…The MOVE Bank Growth Saver account is an online account that lets you earn a competitive rate. Learn more about this high interest savings account.
Read more…The Australian Unity Freedom Saver account lets you earn a competitive rate on balances between $50,000 and $250,000. Learn more about this high interest savings account.
Read more…The Australian Unity Freedom Saver account lets you earn a competitive rate on balances between $250,001 and $500,000. Learn more about this high interest savings account.
Read more…A review of the Australian Unity Freedom Saver account. Learn more about this high interest savings account.
Read more…Lock in a fixed rate on a range of term lengths between 1 month and 5 years for deposits of $5,000 or more.
Read more…Earn a fixed interest rate on a wide choice of terms with a Gateway Bank personal term deposit.
Having a local bank account makes an international student's life easier and even saves them money.
A comprehensive list of the banks, building societies and credit unions trading in Australia.
Kickstart your child’s savings with a Bump Savings Account from Westpac that offers bonus interest each month you grow your balance.
If your bank account has been locked, here’s what you need to do to access your funds.
A bad credit history won’t affect your ability to open a transaction or a savings account. Here’s why.
Some banks allow you to send money using someone's phone number instead of a BSB and Account Number. If your bank doesn't have this feature you can usually use PayID instead - here's how.
Study with financial peace of mind knowing your money is at your fingertips whenever you need it.
International transaction fees can add up to a lot of wasted money. These debit cards are great for travelling and online shopping and will save you money by waiving this annoying fee.
Opening a joint bank account is a big step for any couple. Find out more about what to look for in an account and how to avoid the common pitfalls.
