Cheque-cashing is the process of exchanging a cheque for cash.
But how is that done exactly? What types of cheques are there, which institutions in Australia cash cheques, and what are some pros and cons of cashing a cheque?
Read on to learn more as we explain how to cash a cheque in Australia and, if you need money right away, where you could opt for a fast personal loan as an alternative to cheque-cashing.
What is the Process for Cashing a Cheque in Australia?
When you cash a cheque, the bank or other financial institution that issued the cheque pays you the amount specified on the cheque. The process usually takes a few days, during which time the bank will verify that the cheque is genuine and that there are sufficient funds in the account to cover it. Once the cheque has cleared, you will get access to the funds.
Types of Cheques that can be Used
In Australia, a few types of cheques can be used:
Different service providers will have other criteria, but may generally honor the following types of cheques:
The standard cheque – this is the most common type of cheque used in Australia.
Traveller’s cheques – they are specifically designed for travellers who need a convenient way to carry money while they are on the go.
Certified cheques – they guarantee that the funds are available and that the cheque will be honoured by the bank.
Business cheques
Company cheques
Bank cheques
Account payee cheques
Government cheques
Benefit cheques
Gaming and lottery cheques
Insurance cheques
Lenders in Australia that Cash Cheques
Are there any other ways to cash a cheque in Australia besides going to a bank? Yes, a few different lenders in Australia will cash cheques, but it’s essential to compare their rates and fees before deciding on one. Some of the most popular options include banks, credit unions, and online lenders. But, again, be sure to shop around and compare their rates before deciding.
The following lenders have branches and offer cheque cashing services:
How to compare cheque cashing services in Australia?
There are a few things to consider when choosing a cheque cashing service in Australia:
Cash Stop
Money Plus
Cash Converters
OK Money
You’ll want to make sure that the service offers competitive rates.
You’ll want to ensure that the service is convenient and easy to use.
You’ll want to make sure that the service is reliable and trustworthy.
To compare cheque cashing services in Australia:
- Start by visiting their websites and comparing their rates.
- Read online reviews of the services to see what other customers have said about their experience.
- Contact each service directly to ask any questions you may have.
- You can find the cheque cashing service that best meets your needs by doing your research.
Pros and Cons of Cheque Cashing in Australia
Cheque Cashing Alternatives
If you need money right away, you could opt for a fast personal loan as an alternative to cheque cashing. Before you apply for a payday loan, be aware that they often have high interest rates and shorter loan terms.
Pros:
- You have immediate access to the cash, which is useful if you need it right away.
- There is no need for a bank account. Cheques may be paid out in cash, which means a bank account isn’t necessary to receive the money.
- Fees are often transparent. Cheques need to be cashed, and this is subject to a fee.
Cons:
- Fees will vary and may be high; lenders may take a percentage of the cheque as a fee or a set amount.
- Restrictions are also an issue. Some firms may refuse specific cheques or have restrictions on how much money can be withdrawn.
Here is a rundown of the best personal loan providers in Australia right now.
1. Jacaranda Finance Personal Loans: Fast Payouts
- Loans available: $2,100–$15,000
- Loan terms: 9–24 months
- Interest rate: 18.95% p.a. – 27% p.a (comparison rate from 35.20%)
- Get funds in 60 minutes
Jacaranda Finance offers fast personal loans to all Australian citizens over 18, regardless of their credit score. Simply fill out the online application form and once approved, get your money in an hour. You can then repay the loan (loan terms up to 24 months are available) in weekly, fortnightly or monthly instalments. There is no penalty for early repayments, while interest rates are tailored to your personal financial circumstances.
2. Nimble Personal Loans: Generous Loan Terms
- Loans available: $2,050–$25,000
- Loan terms: 62 days– 48 months
- Interest rate: from 29.99% (comparison rate from 29.99% p.a)
- Repay loans in 4 years
Nimble offers personal loans up to $25,000 that you can use to cover medical bills, home renovation projects, car repairs and other unplanned expenses. Interest rates are a bit higher, although the company offers extremely generous loan terms ranging from 2 to 48 months. Nimble also boasts fast turnaround times (maximum of 60 minutes) and a straightforward and convenient application process.
Note: You must be employed to apply for a loan.
3. Credit 24: Best for Small Loans
- Loans available: $500–$10,000
- Loan terms: 6-36 months
- Interest rate: 24-48% p.a (comparison rate from 32.29% p.a.)
- Borrow as little as $500 with no interest
Small, medium and large Credit 24 personal loans are available for Aussies who need quick cash. Those who only require a small amount can get between $500 and $2000 interest-free, while bigger loans come with interest, but no monthly or establishment fees. If approved, you will get the money on the same business day.
Note: You need to earn more than $600 a month and have a reasonable credit history to apply.
4. Fair Go Finance: Lowest Interest Rate
- Loans available: $300–$10,000
- Loan terms: 1-36 months
- Interest rate: from 9.9% (comparison rate from 22.44%)
- Low interest rates
Fair Go Finance, one of Australia’s biggest online lenders, specialises in small personal loans of up to $10k. The application process is hassle-free and can be completed in under 6 minutes, while response time takes about 24 to 48 hours. The best thing about this lender is that it offers some of the lowest interest rates (as low as 9.9% depending on your credit rating and the size of the loan).
5. Citi Bank: Great for Bigger Loans
- Loans available: $2,000–$75,000
- Loan terms: 3–5 years
- Interest rate: variable 8.90% p.a. (comparison rate from 9.18% p.a)
- Reputable lender
Citi Bank, a subsidiary of multinational finance company Citigroup, can lend up to $75,000 to Aussies in need of quick finance. The entire application process takes less than 10 minutes and can be completed online at your convenience. Repayments are straightforward as well, spreading over 5 years in fixed monthly repayments, while interest rates are low, but variable over the loan term.
Note: Citi Bank has a one-off establishment fee of $199.
Bottom Line
In Australia, there are several ways to cash a cheque. You can go to your bank, the post office, or any other institution offering cheque-cashing services. If you have a bank account with the same bank that issued the cheque, you can just deposit it into your account and receive the funds immediately.
Learn more: What Is the Best Way to Transfer Money Overseas From Australia
There may be other methods available in your area, as alternatives to cheque cashing, so it’s best to check with your local bank or financial institution so you know how to cash a cheque in Australia.
1. Are cheque cashing services safe?
Yes, cheque cashing services are safe. They provide a convenient way to cash cheques without going to a bank. There are some fees associated with using these services, but they are generally minimal. The main thing to be aware of is that you will need to have some form of identification to use most cheque cashing services.
2. How to cash a foreign cheque in Australia?
Cash a foreign cheque in Australia by taking it to a bank and asking to exchange it for Australian dollars. The bank may charge a fee for this service. You can also use the cheque to make a payment or withdraw cash from an ATM, but again, you may be charged a fee for doing so.
