Personal Finance

Cashing Personal cheques?

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Jr. Member
Dec 14, 2014
177 posts
5 upvotes
Mississauga, ON

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?
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Mar 18, 2005
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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?
As long as your name is on top as the person the cheque is made out to, it will not be an issue.
Jr. Member
Dec 14, 2014
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Mississauga, ON
Evil Baby wrote: As long as your name is on top as the person the cheque is made out to, it will not be an issue.
How long does it typically take to clear?
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Michaelp1990 wrote: How long does it typically take to clear?
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.

I'd suspect with a credit union that if the sum is large there will be a 5 business hold but that is something your bank would have to let you know.
Deal Addict
Jul 28, 2012
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Michaelp1990 wrote: How long does it typically take to clear?
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?
Member
Dec 15, 2014
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Vancouver, BC
Michaelp1990 wrote: How long does it typically take to clear?
You should ask your credit union.

But generally, don't cash cheques for other people, it's always a bad idea.
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Aug 16, 2009
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That depends on your bank/credit union. If your a long standing customer with consistent account activity and no NSF's you probably can access the funds immediately. I would check with your credit union.
Jr. Member
Dec 14, 2014
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Mississauga, ON
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?
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?
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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?
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.
Jr. Member
Dec 14, 2014
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Mississauga, ON
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.
Thanks. Lastly if by any chance the cheque bounces would my credit union even notify me?
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Michaelp1990 wrote: Thanks. Lastly if by any chance the cheque bounces would my credit union even notify me?
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.
Jr. Member
Dec 14, 2014
177 posts
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Mississauga, ON
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.
But if I didn't write the cheque and only cashed it why would I get a NSF fee?
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Jul 28, 2012
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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.
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.)
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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.)
Sorry, thanks for correcting me.

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