How to Deposit a Cheque at the Bank

A cheque serves as a written order to a bank, instructing it to pay a specific amount of money from the drawer’s account to the designated payee. This financial instrument functions as a convenient and secure method for transferring funds without using physical cash. Understanding the proper procedure for depositing a cheque ensures funds are credited to your account accurately and efficiently.

Preparing Your Cheque for Deposit

Before depositing a cheque, carefully verify all its details to prevent delays. Examine the payee’s name to confirm it matches your own or the intended recipient’s name. Check both the numerical and written amounts, ensuring they are identical; any discrepancy could cause the bank to reject the cheque. Confirm the date on the cheque is current and not post-dated or stale-dated. Finally, verify that the cheque bears the drawer’s signature, as an unsigned cheque is invalid.

Once cheque details are confirmed, you must endorse it by signing the back to authorize the bank to process payment. The endorsement area is usually a blank space or a designated line on the back.

While a blank endorsement involves only your signature, making the cheque payable to anyone who possesses it, a restrictive endorsement offers greater security. To execute a restrictive endorsement, write “For Deposit Only” followed by your signature or account number in the endorsement area. Some financial institutions may also require specific wording like “For Mobile Deposit Only” if using a mobile banking app. This ensures funds can only be deposited into your account, preventing unauthorized cashing if the cheque is lost or stolen.

Methods for Depositing Your Cheque

After preparing your cheque with the necessary verification and endorsement, several methods are available for depositing it into your bank account. The chosen method depends on your convenience and the services offered by your financial institution.

In-Person Deposit

Depositing a cheque in person at a bank branch allows for direct interaction with a teller. You may need to fill out a deposit slip, accurately recording your account number and the total deposit amount. Present the endorsed cheque along with the completed deposit slip to the teller, who will process the transaction and provide a receipt as proof of deposit.

ATM Deposit

Using an Automated Teller Machine (ATM) provides a convenient option for depositing cheques outside of banking hours. The process involves inserting your debit card, entering your Personal Identification Number (PIN), and selecting the “deposit” option from the menu. Insert the endorsed cheque into the designated slot; the ATM will read the amount, which you must confirm on the screen. The machine will issue a receipt detailing the transaction, including the deposited amount.

Mobile Deposit

Many banks now offer the convenience of depositing cheques using a mobile banking app, a process known as remote deposit capture. This method requires opening your bank’s application on your smartphone and locating the “deposit” or “mobile deposit” feature. You will be prompted to take clear photographs of both the front and back of the endorsed cheque, ensuring all four corners are visible and the image is well-lit. After capturing the images, you will enter the cheque’s amount manually and confirm the deposit details before submitting the transaction.

After Depositing Your Cheque

Once you have deposited your cheque, understanding fund availability and proper record-keeping practices is important. Funds from deposited cheques are not always immediately accessible for withdrawal. The Expedited Funds Availability Act and Regulation CC establish guidelines for how quickly banks must make funds available, though specific hold periods can vary based on factors like the cheque amount, account history, and deposit method. A portion of the deposit, such as the first $225, may be available the next business day, while the remaining balance may be held for a few business days, potentially longer for larger amounts or if the account is new. Your bank will communicate its specific fund availability policy, often through a receipt or notification.

Maintaining a record of your deposit is a prudent financial practice. If you deposited the cheque in person or at an ATM, retain the physical receipt. For mobile deposits, a confirmation email or a screenshot of the in-app confirmation screen serves as a valuable record. These documents can be important if any discrepancies arise with the deposit.

For cheques deposited via a mobile banking app, retain the physical cheque for a short period after the deposit is confirmed and funds are available. Many financial institutions recommend keeping the cheque for approximately 5 to 30 days, or until you are certain the full amount has posted. After this retention period, mark the cheque “VOID” and then securely shred it to prevent any potential misuse or accidental re-deposit.