How to Deposit a Cheque

Thankfully, it’s easy to convert that slip of paper into cash for a set of new kicks or a smart investment plan. Here’s what to do:

First, endorse the cheque

Find a pen with dark-coloured ink and clearly sign the back of the cheque. Often there’s a line or box marked “Endorsement” with plenty of space for a signature.

This simple act shows you acknowledge the cheque and agree to its deposit. You might be able to skip this step for small amounts of money, but it’s best to do it anyway to prevent potential problems. You might also be asked to write your bank account number on the back.

If the cheque is made out to more than one person or business, you’ll need everyone’s signatures on the back to cash it.

If someone wrote you a cheque but you want to give that money to someone else — maybe you just got paid for a job and want to settle a debt — you can try to sign it over. Sign the back and give it to the new recipient to sign, too.

Some banks might not allow you to countersign a cheque, while others may require you to add “Pay to the order of [new recipient]” under your signature.

How do you deposit a cheque at a bank?

If a walk down the block and a trusted face-to-face transaction is your preferred modus operandi, then get in line.

Once you arrive, the teller will review your cheque and ensure all the must-haves are in place: the payer’s information, the cheque’s value and your endorsement. Next, you’ll insert your debit card into a terminal and enter your PIN so they can access your bank account.

Most of the time your money is available right away, but it’s possible you may have to wait if the bank wants to ensure everything is in order first.

You see, behind the scenes, banks actually take a couple days to clear cheques before money is transferred. When you get the money right away, you’re essentially getting a good-faith advance until the process is done.

When a bank places a cheque on hold until it clears, it’s reducing its risk in case the issuer doesn’t have enough money in their account. Unfortunately, this means you’ll have to chase down the issuer for payment in the form of a new cheque — or, even better, ask for a direct deposit that can’t bounce.

For an in-person deposit under $1,500, the maximum time a bank can hold the funds is four days. For larger amounts, you might have to wait up to seven days.

How do you deposit a cheque at an ATM?

Most machines are designed to accept endorsed cheques. Usually you’ll need to use an ATM that belongs to your bank, but if you’re willing to suffer delays you may be able to use an ATM in your bank’s network. Check with your bank first.

As with any ATM transaction, begin with inserting your debit card and follow the on-screen instructions. The steps include keying in your PIN and confirming the amount and the destination account.

Without a teller to ensure everything is filled out correctly, you’ll want to double check your cheque before you proceed.