How long are cheques valid for?

What is a cheque?

A cheque is a written money order instructing the account holder’s bank to pay a person or business a specified amount of money.

Thanks to the ease and convenience of mobile banking apps and direct bank transfers, some people think that cheques went out with the dinosaurs. Younger generations might not even know what a cheque is.

But while they may have gone out of fashion, cheques are far from extinct. Although the number used in 2024 fell by 17% on the previous year, 91 million cheques were still processed in the UK. They can still be useful for paying tradespeople, donating to charity or receiving government refunds such as car tax.

How long do I have to deposit a cheque?

You have up to six months from the date written on the front of the cheque to pay it into your account.

Technically speaking, cheques don’t have an expiry date. But, in practice, banks will usually reject a cheque if it’s older than six months.

If you’ve forgotten about a cheque and it’s more than six months old, the best thing to do is ask the person or organisation that gave it to you to write another.

Are cheques being phased out?

Cheques aren’t being phased out officially and they’re still a valid form of payment. But many companies and organisations now only accept online transfers and refuse to accept cheques as they involve too much admin.

Cheque processing isn’t completely antiquated though. Most banks now use digital technology, which makes the cheque clearing process faster and easier.

What is cheque imaging?

Cheque imaging is a way of paying in a cheque using your bank’s app. Simply use the app to photograph your cheque with your smartphone camera. The app reads the details and puts the money into your account. You can still pay in a cheque at your branch if you prefer, but cheque imaging saves you a trip and can be done from anywhere with a secure internet connection.

As well as being more convenient, cheque imaging speeds up the clearing process. The traditional paper-based route used to take up to six days. With cheque imaging, a cheque can clear as quickly as the end of the next working day.

How to write a cheque

To complete a cheque properly, you’ll need:

• The name of the person or business you’re paying, as it appears on their bank account

• The date

• The amount in words, followed by the world ONLY (this stops anyone changing the amount)

• The amount in numbers, followed by a line so no extra numbers can be added

• Your signature – this must be consistent with the one on your bank records, although realistically it doesn’t have to be an exact replica.

Only write a cheque if you have enough money in your bank account to cover it.

What’s a ‘bounced’ cheque?

Cheques ‘bounce’ when the person who wrote it doesn’t have enough funds in their account to cover the payment. If your cheque bounces, it won’t clear and will be returned to you.

Other reasons a cheque might not clear:

• The bank thinks the cheque is fraudulent

• It isn’t signed correctly

• It isn’t signed at all

• The name on the cheque doesn’t match the one on the account it’s being paid into

• It’s post-dated – in other words, the date on the cheque is after it was written so it can’t be paid in until then

• Mistakes haven’t been corrected (these must be signed or initialled)

• The amount in words doesn’t match the amount in numbers

• The cheque is more than six months old.

What are the alternatives to cheques?

Cheques can still be useful, but digital technology means there are now quicker, safer and more convenient ways to transfer money:

• Online banking – allows you to make and receive bank transfers and set up payments. Most banks also let you make international money transfers via online banking.

• Debit card – debit card payments are instant – the money is taken straight from your current account. You can also use contactless payments up to £100.

• Credit card – a flexible way to buy something and pay for it later, although you’ll be charged interest if you don’t pay off the balance in full by the due date.

• Mobile payments – digital wallets, like Apple Pay and Google Pay, link to your credit or debit card. This means you can make contactless payments securely from your iPhone, Android smartphone or wearable device without needing your card.

Can I cash a cheque if I don’t have a bank account?

If you don’t have a bank account, you can cash a cheque through a cheque-cashing retailer or money-lending service. But you may be charged a hefty fee. This is a service best avoided if possible.

If you have a poor credit history or have only just moved to the UK, you may be able to open a basic bank account. This won’t give you interest or an overdraft option, but you’ll have a debit card and basic banking features, allowing you to pay cheques into your account.

Some banks also offer accounts for people without a fixed address.