What is a cheque book : some useful points to note

Introduction to Bank cheque book

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Cheque book is very familier to all of us. If you have a bank account, then you should have a cheque book. You can fill the form while opening for the account first time. Having a chequebook will provide lot of facilities to you. Generally there is a limit to withdraw money by ATM card, but for cheque book you can go for any amount.

A cheque is the usual method of withdrawing money from a current account, Savings accounts are also permitted to be operated by cheques provided certain minimum balance is maintained. A cheque without a date is considered incomplete  and is returned unpaid by the banks. A cheque that bears a date earlier than six months is a stale cheque and can not be claimed for.

Types of Cheques:

There are many types of chequebook available in every bank. Each type has its own use. Among them few are : Bearer Cheque, Order Cheque, Non transferable, Crossed Cheque/Account payee cheque, Post-Dated Cheque etc. Always ask your bank clerk about your requirement and then apply for a chequebook.

Who can apply for a cheque book :

There are many types of chequebook available in every bank. Each type has its own use. Among them few are : Bearer Cheque, Order Cheque, Non transferable, Crossed Cheque/Account payee cheque, Post-Dated Cheque etc. Always ask your bank clerk about your requirement and then apply for a chequebook.

Advantages of a cheque:

You can carry the cheque book instead of cash. For a big payment you can use the cheque.
If you dont have access to internet banking or you don't have your own laptop, you can go for cheque book to complete your payments. As its not advised to use internet banking from a cyber cafe. Its not safe.
In case of cheque, there is no limit of amount for any payment. As per your balance maintained in your account you can pay as much as you can.You can reissue a cheque book easily from branch or even internet banking.

Disadvantages/Risks of a cheque :

1. You should always know how much balance is there in your acocunt. Otherwise if you make a payment greater than your account balance, your cheque will bounce. In that case you have to pay a penalty. Sometimes you have to feel the embarassment also.
2. Becarefull with your signature. Dont disclose it. Keep your chequebook in a safe place.
3. Dont sign a blank cheque for future use. May be you think it will save you time. But if it reaches to someone else by any chance, just think what can happen.

Best practices to follow:

1. Always fill the details clearly. Dont overwrite any text.
2. Mention the date and amount clearly.
3. Always mention account payee on the top left of the cheque.
4. In the cheque book maintain all the cheque numbers with corresponding details.
5. Dont use ink pen to fill a cheque. Use only ball pen.
6. While submitting a cheque to a bank, mention your account number and phone number. The bank clerk might need to contact you.
7. Always keep the cheque deposit slip from the bank for reference.