Cashing Personal cheques?
If someone gives me a cheque from RBC and I have an account at a credit union will I be able to cash/deposit the cheque or will there be issues?
Jul 21st, 2016 4:46 pm
Jul 21st, 2016 4:48 pm
As long as your name is on top as the person the cheque is made out to, it will not be an issue.Michaelp1990 wrote: ↑If someone gives me a cheque from RBC and I have an account at a credit union will I be able to cash/deposit the cheque or will there be issues?
Jul 21st, 2016 4:51 pm
Jul 21st, 2016 4:56 pm
depends on your standing with the bank and your bank and the amount. For me, anything deposit into PC Financial under $1000 is automatically credited to me without a hold. For my business account, as long as I've done business with the company before it clears automatically, if not there is a 5 business day hold.Michaelp1990 wrote: ↑How long does it typically take to clear?
Jul 21st, 2016 4:56 pm
Up to 5 business days, but do you know the person who is giving you the cheque? Do you have any reason to believe the cheque is not valid?Michaelp1990 wrote: ↑How long does it typically take to clear?
Jul 21st, 2016 4:57 pm
You should ask your credit union.Michaelp1990 wrote: ↑How long does it typically take to clear?
Jul 21st, 2016 5:04 pm
Jul 21st, 2016 5:05 pm
Yes. I know the person has sufficient funds in their account but I was worried that since we both used different financial institutions my credit union may not accept it as its not from their institution. Will I be fine?airodyssey wrote: ↑Up to 5 business days, but do you know the person who is giving you the cheque? Do you have any reason to believe the cheque is not valid?
Jul 21st, 2016 5:25 pm
Yes, you will be fine. This used to be an extremely typical way of payment and is still widely used. Your credit union will have no issue depositing the cheque and taking the funds out of your friends account as long as the cheque is made payable to you and your friend filled it out correctly.Michaelp1990 wrote: ↑Yes. I know the person has sufficient funds in their account but I was worried that since we both used different financial institutions my credit union may not accept it as its not from their institution. Will I be fine?
Jul 21st, 2016 5:30 pm
Thanks. Lastly if by any chance the cheque bounces would my credit union even notify me?Evil Baby wrote: ↑Yes, you will be fine. This used to be an extremely typical way of payment and is still widely used. Your credit union will have no issue depositing the cheque and taking the funds out of your friends account as long as the cheque is made payable to you and your friend filled it out correctly.
Jul 21st, 2016 5:55 pm
That depends on if you have the balance to cover it. If you do, they likely won't notify you, but you will be charged an NSF fee typically between $35 and $50. If you don't have the money to cover the bounced cheque and you've already taken the money out of the account the bank might call you letting you know that you have to pay the negative balance off.Michaelp1990 wrote: ↑Thanks. Lastly if by any chance the cheque bounces would my credit union even notify me?
Jul 21st, 2016 6:01 pm
But if I didn't write the cheque and only cashed it why would I get a NSF fee?Evil Baby wrote: ↑That depends on if you have the balance to cover it. If you do, they likely won't notify you, but you will be charged an NSF fee typically between $35 and $50. If you don't have the money to cover the bounced cheque and you've already taken the money out of the account the bank might call you letting you know that you have to pay the negative balance off.
Jul 21st, 2016 6:13 pm
Not exactly. An NSF fee would be charged to the person who writes the cheque (if their account balance is insufficient).Evil Baby wrote: ↑That depends on if you have the balance to cover it. If you do, they likely won't notify you, but you will be charged an NSF fee typically between $35 and $50. If you don't have the money to cover the bounced cheque and you've already taken the money out of the account the bank might call you letting you know that you have to pay the negative balance off.
Jul 21st, 2016 9:12 pm
Sorry, thanks for correcting me.airodyssey wrote: ↑Not exactly. An NSF fee would be charged to the person who writes the cheque (if their account balance is insufficient).
On the other hand, the person depositing the cheque would be charged an item returned unpaid fee. Usually, this fee is much lower (around $7, depending on the institutions). This is for cheques deposited and returned, not just for NSF, but for any other reason (funds not cleared, account closed, stop payment, forged, etc.)