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| cheques & cheque guarantee cards | |||||||||||||||||
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A cheque is a simple and relatively safe way of transferring money between people and companies. When you write a cheque you instruct the bank to pay a specified sum of money to a particular person or company. This is what a cheque looks like: |
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To write the cheque you will need to write in:
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| The bank will only pay out the amount of money you have specified if you have this amount of money in your account, so you must keep a check on how much money you have available. | |||||||||||||||||
| Be careful to make sure the cheque is completed properly. Mistakes are often made by people completing cheques and the bank may return the cheque unpaid if it is not completed accurately. | |||||||||||||||||
Common errors include:
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| If it helps have a look at the numbers and figures included at the end of this section. | |||||||||||||||||
| Some people, or companies, will ask for a cheque guarantee card when you write the cheque. | |||||||||||||||||
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| In simple terms, the company may be worried that you do not have sufficient money in your account and that the bank will not pay it out. The cheque guarantee card in effect says to the company that the bank will honour (or pay out) the cheque up to a certain limit, normally £50 or £100. This card is similar in size to a credit card, but its job is to simply to guarantee that the sum of money, (up to the limit), will be paid out. | |||||||||||||||||
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