Asked on 30 Nov 2019
Just curious in what circumstances they would be used these days...
It used to be of convenience in the past, but now the uses are more limited.
Situation where a financial commitment needs to be made (usually larger amounts), but doesnt require the immediate transfer of the said money. Eg, downpayment for house, u hand the check to the agent/lawyer etc. In business world, companies issue post dated cheque to creditors, it can only be drawn upon after the agreed period of credit term. High rollers in casino gives blank cheque to the casino for a credit line.
Or even if u want to give someone/some entity some amount of money (can be for donation or whatever reason), but u do not have their financial details (bank account number, paynow details, etc). You can just write the amount and sign the cheque, but leave the pay-to empty.
Or rarely if u require to make financial commitment, as u require more time to reconsider or do further due diligence. U can post date the cheque. If needed, u can always block the cheque so that it cannot be drawn upon. (maybe u found out it is a scam etc) haha.
There are still useful times where cheques can be used, but for daily task typically are no longer needed.
Top Contributor (Jan)
Convenient, e.g. for car downpayment, or when immediate deposit is required.
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