Can a Self Cheque Be Cashed by a Third Party?
Discover if self cheques can be paid to third parties and how to securely transfer funds with cheques.
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Self cheques cannot generally be paid to a third party. These are intended specifically for the account holder to withdraw money personally. If you need to transfer funds, write a cheque payable to the third party’s name, ensuring it is crossed and marked 'Account Payee Only' for security.
FAQs & Answers
- What is a self cheque? A self cheque is a cheque written by the account holder to themselves, allowing them to withdraw funds directly from their bank account.
- Can I use a self cheque to pay someone else? No, self cheques cannot be paid to third parties. To pay someone else, you must write a cheque directly to that person or entity.
- How can I securely transfer money to a third party using a cheque? To transfer money to a third party, write a cheque payable to their name and ensure it is crossed and marked 'Account Payee Only' for added security.
- What does 'Account Payee Only' mean on a cheque? 'Account Payee Only' means that the cheque can only be deposited into the bank account of the person or entity named on the cheque, enhancing its security.