A guide on how to write a cheque and deposit one in Singapore

Despite the convenience of PayNow, GrabPay, FavePay, and the countless payment apps that make our lives easier, there are still people and organisations that don't accept online or credit card payments.

Don't be surprised if your renovation contractor or a wedding vendor requests for a large payment in cash, and doesn't accept PayNow, NETS or credit card.

Yup, there are still people who prefer the old-fashioned way for valid reasons (no extra fee, logistic reasons, and so on). When this happens, if you don't want to draw a huge wad of cash, you should learn how to write a cheque instead.

So, what do you need to know about filling up the old-school paper cheque?

1. How to fill up a cheque in Singapore 

You might be feeling a bit ashamed for landing here after googling "how to write a cheque".

Well, don't worry, it's super easy. Just follow these six steps and you're good to go:

1. Fill in the date you’re writing the cheque.
2. For the “Pay” field, fill in the full name of the recipient (either company or individual’s name) as per bank records.
3. Cross out “or bearer” on the cheque to ensure that the cheque can only be cleared for the intended recipient. Then draw two diagonal lines on the top left hand of the cheque. This signifies to the bank that you only want the payee stated to receive the money, and not just anyone who gets their hands on your cheque.
4. Write down the cash amount in words (e.g. Three hundred twenty eight and cents eighteen only) 
5. Write down the cash amount in numerical (e.g. $328.18). Ensure that it tallies with the amount in words that you have written.
6. Sign your cheque according to your signature as per bank’s records

You should write in non-erasable blue or black ink and preferably in capital letters. If any amendments are required, you should cancel neatly with a horizontal line and sign beside it.

Be sure to have sufficient funds in your account for the amount that you intend to transfer. 

After writing a cheque, you should always record all the details down (there's a page in your cheque book meant for that purpose). This is to keep track in case any discrepancy occurs.

2. What's a crossed cheque? 

Crossing the cheque carries the meaning of the words "for account payee only". 

Crossed cheques cannot be encashed. This means that if any random person on the street picks up the cheque, they cannot receive the money in cash. 

This ensures that the only way funds are transferred is if the recipient of the cheque deposits it into his/her bank account. 

To ensure that only the intended recipient can deposit the cheque, remember to cross your cheque and strike out the words "or bearer".

3. How to write a cash cheque in Singapore 

Sometimes you don't have a person's name, or it's not relevant. You can write a cash cheque instead, which means whoever receives the cash cheque can get the money over the counter. A bank account is not required.

This can be risky as anyone who gets hold of the cash cheque then becomes the "bearer", allowing he/she to bring the cheque to the bank and cash out for money.

To issue a cash cheque, there is no need to cross your cheque or to cancel the words "or bearer" on the cheque. On the "Pay" line, instead of writing the recipient's name, you can just write "cash".

4. What to write on the back of a cheque when depositing it 

After you've filled in your cheque, flip it around and write these on the back of it:

• Your account number
• Your full name as per bank records 
• Your contact number 

5. How to deposit a cheque in Singapore 

Whether your account is with POSB, DBS, OCBC or UOB, the cheque deposit and clearing times are standardised in Singapore.

Note that you have to deposit the cheque at your own bank where you have an account, not the bank stated on top of the cheque. That's the bank of the person who gave you the cheque.

If you get an OCBC cheque but don't have an OCBC account, don't worry. You can bank it in at any bank where you have an account, such as DBS. 

When a bank receives a cheque, they will send an image of the cheque to the bank where the funds are coming from. This allows for funds to be released and to be credited into your account. This process is known as cheque clearing. 

Cheques are typically valid for six months from date of issuance, so don't think you have forever to deposit a cheque! 

6. When will I get my money after depositing a cheque?

After depositing a cheque (before 3.30pm), you’ll receive your money the next business day after 2pm.

There are two things to note here:

1. Cheques are cleared on business days only, i.e. Mondays to Fridays. So for cheques deposited on Friday, Saturday and Sunday, you will receive funds the following week.
2. If you want to receive your funds the next day, the cut-off time to deposit your cheque is 3.30pm. Should you deposit your cheque after 3.30pm, you might only receive your cash the day after the next.

Cheque deposited on	Receive money on
Mon to Thu before 3.30pm	Next business day after 2pm
Thu after 3.30pm	Monday after 2pm
Fri before 3.30pm	Monday after 2pm
Fri after 3.30pm	Tuesday after 2pm
Saturday	Tuesday after 2pm
Sunday	Tuesday after 2pm

ALSO READ: Best savings accounts in Singapore with highest interest rates (2023)

This article was first published in MoneySmart.