Check Accounts

You don't have to quite go back to the Noah's Ark to recall when checks were the best way to run your day-to-day finances.  Technology has made financial transactions quicker and easier than ever; but fortunately checks are not redundant.

There is no getting away from the fact that the general population utilise checks far less than say 20 years ago.  Credit cards, online payment channels like PayPal are an easy and convenient alternative.  There are however some situations that just cry out for the old fashioned check.

Putting the Brakes on Payment

Occaisionally when your cash flow is slow you may want to slow down your own payments.  Cash flow is all important and paying a bill by check can buy you a day or two extra.  By the time you put your payment in the mail, your creditor banks the check, and then it clears at your bank can easily take 2 or 3 days.  However for all intents and purposes you have paid the moment your creditor receives the payment.

Banking Safely

This may sound like a misnomer, but if you get a bank draft (or bank cheque depending what country you live in), these are guaranteed by the bank and are virtually as good as cash, with the added bonus of the check being written in the name of the recipient.  Many financial transactions demand this level of security.  A good example is a bond I just paid on my rented apartment.  The realtor insisted that I make the first payment and bond by bank check for security.

Business Still Like Checks

It may seem like a quaint old fashioned way, but many business still like to use checks to pay their bills.  They are easily mailed and provide a written record of your payment in the stub.  Many small business owners like to sit down with their checkbook and pile of bills once a month and clear all their bills in one sitting.