A Canadian cheque is easy to understand – its sections identify the cheque issuer’s name and address, digits identifying the issuer’s bank and bank account, the payee to whom the cheque is made out, and the amount the cheque is valued at.
You can’t cash a cheque before the date listed on the cheque. The signature line on the cheque’s bottom right is its most important security feature – without a signature, a cheque cannot be cashed.
Key Takeaways
- A Canadian cheque features the issuer’s name, address, and banking information.
- Canadian cheques cannot be cashed before the date indicated on the cheque.
- The amount a cheque is issued for is noted in both written and numeric form to avoid confusion.
- A cheque’s most important security feature is your signature.
How to read a cheque
A Canadian cheque is made up of two main sections – the personal information and date section and the banking information section.
The personal and date section is located in the cheque’s top portion and includes the following information:
- The issuer’s full legal name and address
- The legal names of all account holders if from a joint account
- The date (in the top right-hand corner)
- Phone numbers and/or email addresses can be added
The banking section sits in the center of the cheque and extends towards the bottom. It includes the following:
- Amount line
- Amount box
- The sender's bank name and address
- Signature line
- Memo line
- Cheque number
- Bank transit number
- Institution number
- Bank account number
How to read bank information on a cheque
A typical Canadian cheque includes the following:
- Cheque number
- Transit number
- Institution number
- Account number
- Routing number
Cheque number
When you receive a book of cheques from your bank, they will be numbered sequentially, starting with "001." This number appears in the bottom left corner of the cheque (and sometimes at the top right).
When you receive a new chequebook, you should flip through to ensure the cheques are numbered correctly.
If using temporary or starter cheques, you'll need to write in the cheque number and all other information yourself.
Transit number
The transit number is a five-digit number immediately following the cheque number. It's used to identify the bank branch where you opened the account.
No matter which branch you bank at, the transit number will not change.
Bank institution number
The bank institution number is the three-digit number immediately following the transit number. It refers to the bank that issued the cheque.
Just like the transit number, this number will not change.
Each banking institution in Canada has an institution number or code. Here are some of the most common codes in Canada:
| Banking institution | Institution number |
|---|---|
| BMO | 001 |
| Scotiabank | 002 |
| RBC | 003 |
| TD Bank | 004 |
| National Bank | 006 |
| CIBC | 010 |
| Canadian Western Bank | 030 |
| EQ Bank | 623 |
| Vancity | 809 |
| Meridian | 837 |
Account number
Your account number is between 7 to 12 digits long and identifies the specific bank account the cheque draws funds from. The account number is listed to the right of the institution number.
Routing number
Your cheque’s routing number consists of 8 digits – your cheque’s transit number and institution number combined.
The routing number is used to identify the institution and branch the funds are coming from or going to, such as for automatic payments or direct deposit.
How to read personal information on a cheque
You'll find personal information and the cheque’s date at the top of the cheque.
Name
The cheque issuer’s full legal name sits in the top left-hand corner of the cheque. If the cheque is issued from a joint chequing account, all the account holders’ names will be listed on the cheque.
If desired, the account holder's phone number and email address can be included here as well.
Address
The issuer’s full address is located under the issuer’s legal name in the top left-hand corner of the cheque.
Date
A cheque’s date is located at the top right of the cheque – a cheque cannot be cashed or deposited before this date.
You can post-date a cheque or a series of cheques, which means indicating a future date for when the cheque can be cashed.
For example, your landlord might require post-dated cheques for a year’s worth of rent. If the cheque is dated the first of each month, your landlord cannot deposit those cheques until the date indicated on the cheque.
A stale-dated cheque is one that still hasn't been cashed six months after the indicated date. If you don't cash a cheque before the six-month mark, you'll likely have to ask the issuer to write another one.
A certified cheque, or a cheque issued by the Government of Canada, are the exceptions to the 6-month rule – they can still be cashed after the 6-month mark.
Other information to consider when reading a cheque
A cheque is issued to a payee, or the person receiving the cheque, with the amount the cheque is worth written in two spots in the center of the cheque – the amount box and the amount line.
The signature line, at the bottom right of a cheque, is a cheque’s most important security feature. The memo line can note the cheque’s purpose, but it is not mandatory to fill it out.
- Payee: The recipient’s full name goes on this line. If the payee line is left blank or made out to "cash" and the cheque is signed, the cheque can be cashed by anyone.
- Amount box: Written in numeric form, this box indicates the amount of money to be transferred from the payer’s bank account to the recipient. The cheque’s total amount should include a dollar sign, followed by the numerical amount, and a decimal point with the amount of cents. If the cheque is for an even amount (e.g. $100), add a decimal point and "00" to ensure no one can add more zeros to the cheque’s value.
- Amount line: This confirms the amount listed in the amount box, but in written form. Spell out the dollar amount, followed by the number of cents over 100. Add a dash to the end of the amount line to prevent more zeros from being added to the original amount.
- Memo: The memo line is optional and can indicate the cheque’s purpose. For example, "January rent."
- Signature: Your signature authorizes the recipient to deposit the cheque and transfer the specified funds into their account. Make sure your signature is consistent, written in cursive and not printed, to avoid forgery. You cannot deposit a cheque that doesn't include the payee's signature.
How to read the back of a cheque
You'll find an endorsement line on the back of each cheque. If you receive a cheque and you want to give it to a third party, sign the back to endorse it before handing it over.
If there isn't a specified endorsement line, simply write "pay to the order of" on the back of the cheque and include the new recipient’s legal name. Then sign the back of the cheque.
Cheque safety tips
Follow these steps to keep your cheques (and your bank account) safe, including writing out cheques in ink, using all the space allotted to you on a cheque, and keeping track of cheques you issue.
- Permanent ink: Write your cheques in permanent ink, not pencil. A recipient could erase or change the amount the cheque is made out for if it is not written in permanent ink.
- Use the entire amount box and line: Fill in the entire amount box with the numeral amount of the cheque, followed by a dash extending to the edge of the amount box. This will prevent anyone from altering the numerical value of the cheque. Do the same with the amount line – spell out the amount the cheque is valued at before drawing a line to the edge of the amount line.
- Balance your chequebook: Keep track of all cheques you issue by recording their value in your chequebook, including the payee, date, and amount issued for each one. Ask your bank for a chequebook that includes carbon copies to ensure you have a physical record of each cheque issued.
- Void unused cheques: If you have cheques you know won’t be used, write "VOID" in large letters across the front of the cheque. This will ensure the cheque cannot be used improperly or forged.
- Keep your signature unique: Do not print your signature. Write it out in cursive and make sure it's unique and difficult to forge.
- Sign a cheque only when ready: Signing a cheque means you authorize the recipient to withdraw the specified amount from your bank account, so only sign a cheque when you are ready for those funds to be drawn.
$75 GeniusCash + Unlimited transactions for $0 + Ding-free non-affiliated ATM usage.
$25 GeniusCash + $50 bonus for funding a new account, and $0 commissions on stocks & ETFs
$12 GeniusCash + Access trusted news coverage 24/7 + Digital and home subscription options.
$25 GeniusCash + Delicious meal choices with fresh ingredients + Front-door delivery.FAQ
What are the 3 numbers on a cheque?
The 3 numbers on the left (or top right) are the cheque number. The 5-digit number after this is the transit number, the 3 digits are the institution number, and the 7-12-digit string is the account number.
Why is a cheque written in both numbers and words?
Writing the cheque in numerical and written form helps to confirm the amount of money that the payee intends to give. It also acts as a preventative measure, making it harder for fraudsters to alter the document.
How to tell if a cheque was cashed or deposited
You can confirm this by calling your bank to ask if a cheque has been cashed, or by checking your bank statement. Your statement will show a deposit of the specified amount, or a withdrawal, whatever the case may be.
Can you cross out information on a cheque?
Yes – cross out any mistakes with a single line, then add the correction on top of the crossed-out section. Add your initials as approval. If depositing the cheque in person, ensure the bank teller is aware of the error.
How to tell if a cheque is in CAD or USD
Routing numbers on Canadian cheques appear as "5-digits dash 3-digits." American cheques have 9 digits. Typically, banks assume that if the cheque comes from a Canadian account, the currency is in CAD, and vice-versa for U.S. accounts.
Leave a comment
Comments