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With the rise of online and mobile banking, cheques are becoming a much less common form of payment in Australia and around the world. But if you’re looking for an everyday transaction account that allows you to write cheques on your bank balance, there are still a number of options available.
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.
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