![]() This complex web of clearances is the reason canceled cheque fees are and remain so high: it’s pricey to process a cheque.Īs you can see, this entire process takes forever and involves a lot of moving parts. Finally, your account would be debited and the bill paid, perhaps around the 15th. Then, the cheque had to be sent off to your bank for the grocery store’s bank to be paid, a process that might take place by the 10th. That cheque would be bundled up and taken to the grocery store’s bank where it might not be opened until the 3rd. Think about it you’d write a cheque for your $50 grocery bill on Monday, the 1st of the month. That’s why many grocery stores still have those tiny tables near the register-just for writing cheques.Ĭheques, however, took forever to actually clear. Cheques were incredibly popular for the better part of 200 years before the growth in popularity of the debit card in the late 1990s. In days of yore (there’s your $4 word of the day), folks used to sit down and set out all of their financial transactions for a set period, usually monthly. What is balancing a chequebook anyway?īalancing your chequebook is better termed as reconciling your bank account. So, do you need to balance your chequebook? Read on and we’ll discuss some of the reasons why you might want to take up this practice. It was, however, a key part of budgeting and ensuring people had enough money to pay the bills, buy groceries, and still put some money away in the savings account. Online bank accounts and instant access on our mobile phones have virtually done away with this critically important practice. Talk about old-fashioned, right? The idea of balancing a chequebook is so antiquated that younger generations may not even understand the previous sentence. It’s highly likely that your parents or guardian or grandparents sat down at some point during the month, laid out all their receipts on the table, pulled out their chequebook register, and tried to make sure everything equaled up.
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