Know the Different types of cheques | Summary and Q&A

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September 20, 2016
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Elearnmarkets by StockEdge
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Know the Different types of cheques

TL;DR

This video explains the different types of checks, including bearer checks, self checks, account pay checks, and postdated checks, and how they can be used for withdrawing money or transferring funds.

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Questions & Answers

Q: What is a bearer check, and how does it differ from other types of checks?

A bearer check is an open check that does not require endorsement and can be transferred by simple delivery. It is valid for up to 3 months and poses higher risk than other types of checks.

Q: How does a self check work?

A self check allows the account holder to physically receive money for themselves. It is written as "self" to indicate this and does not require endorsement or transfer.

Q: What is an account pay check?

An account pay check is the most secure type of check. It is written as "account pay" by crossing it twice with two parallel lines. It can be transferred directly to the specified account.

Q: What is a postdated check used for?

A postdated check is used to meet future obligations. It is similar to an account pay check but is dated for a future date, often used in agreements like lease agreements, valid for up to 3 months.

Summary & Key Takeaways

  • The video discusses the four types of checks available: bearer checks, self checks, account pay checks, and postdated checks.

  • Bearer checks are open checks and can be transferred by simple delivery without endorsement, valid for up to 3 months.

  • Self checks allow the account holder to physically receive money for themselves.

  • Account pay checks are the safest type, transferable to the specified account, and postdated checks can be used to meet future obligations.

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