What are the different types of cheques?

A cheque is a written order to pay money. It is used in place of cash, bank card or any other payment method. It can be used by anybody to pay the drawee, the person to whom it is addressed. Cheques are used in many different fields, including business, banking and personal finance. Hence knowing about cheques is just as important as learning about the right voucher format. There are several various types of cheques you can write which is dependent on who the writer is, the purpose of writing and why it was issued or written. Let’s find out about these types of cheques:

1. Bearer Cheque

A bearer cheque is a paper document that contains the name of the payee and a signature. The bearer can be anyone who can sign on their behalf of himself. The payee is referred to as the drawer. Bearer cheques are a type of bank draft, which means that they are not deposited into your account and can’t be traced back to you. If you want to avoid having your name associated with it, you should request that the cheque be issued in the name of another person, or if there is no one else available, then in the name of the bank itself.

2. Order Cheques

Order cheques are issued by banks to authorized customers and allow them to draw money directly from their accounts. You can use order cheques to pay bills or make purchases without first obtaining cash from an ATM machine or a teller. There is no limit on how many orders can be made on an account, but there is a limit on the number of times that you can use an order cheque within a given period.

3. Post-Dated Cheque

These are the most common types of cheques. A post-dated cheque is a cheque issued on a date in the future. The purpose of this type of cheque is to protect your money from loss if you do not have it available at that time. If you pay someone with a post-dated cheque, they will have time to get the funds and then deposit them into their account. Hence, a post-dated cheque is a document that requires the customer to pay the funds into an account by a specific date. Post-dated cheques require the bank to specify a date on which it is required to pay the money. This date is usually one month after the date of issue, or three months after the date of issue if the account holder has not yet cleared his cheque. The bank will usually pay out only when this particular date arrives, even if there is not enough money in its account at that time. If there is insufficient money in the account, it does not have to honour the cheque and can return it for payment. A post-dated cheque is an example of an unconditional payment order, meaning that it can be used to make any kind of payment at any time before its due date – even if you don’t want to wait until then.


4. Cancelled cheques

A cancelled cheque is not meant for drawing money from the bank account. Their main purpose is to validate the bank details of an account holder. Hence it could be used as proof of account while dealing with financial institutions and banks. To write a cancelled cheque all you need to do is write the word “cancelled” across the cheque.


5. Self Cheque

A self-cheque is one that you write yourself, usually as a form of payment to yourself or your employer. Self-cheques are usually used in situations where you need to pay someone else and have no access to cash.

Self-Cheque is a form of a check that allows customers to write their own checks and make payments directly from their accounts without having to go through an agent or bank teller. However, to draw these cheques you must go to the issuer’s bank.

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