We have noted a decline in the number of cheques used as a method of money exchange. Given the availability of more efficient methods for making payments, we hereby give notice that TNB will no longer issue cheque books as of 1st July 2021 and will withdraw cheque clearing services by 31st December 2021.
Background
The first pre-printed cheques were pioneered by the Bank of England in 1717. Cheques became a standard method of exchanging money, but with the onset of new technology clients are choosing to make more payments via electronic means. This is a faster and more efficient way of effecting money transfers.
The use of cheques has been in decline for several years and the cost associated with processing these has become uneconomical.
At TNB, we are investing in developing more efficient systems for payments, and part of this involves moving away from outdated methods for exchanging funds. We have therefore taken the decision to move away from cheques and look towards the future in a more efficient way.
Changes
These changes will impact both the issuing and receiving of cheques.
- 1st July 2021: TNB will no longer issue cheque books to any clients. Clients holding unused cheques can return these to the Bank by this date for a refund of charges applied.
- 31st December 2021: TNB ceases to accept incoming cheques. Cheques issued by our clients will not be honoured after this date.
Please note that cheques become invalid six months after issue date. Clients that opt to retain cheque books for use after 1st July 2021 should note that if a cheque has not been processed by 31st December 2021, it will not be honoured. This may further lead to charges applied by the payee bank.
Alternatives to cheques
Our recommended alternative method of payment is via our Netbank online service. This is a fast, secure and easy method to exchange funds. If you do not currently have access to Netbank or require guidance on how to use it, please feel free to contact us for help. We also encourage clients to use direct debit and standing orders for regular payments.
Your next steps
We recommend the next steps:
- Return any unused cheques to the Bank by 1st July 2021 for a refund of charges.
- Inform anyone that pays you by cheque to arrange direct transfers to your account (you will need to supply them with your account details).
- If you are currently paying a third party by cheque, you should arrange for payments to be made via Netbank (you will need their bank details).
- If you issue a cheque after 30th June 2021, ensure to inform the payee to process the cheque before 31st December to avoid risk of non-payment and possible fees.
Please note that GBP denominated payments to accounts in Gibraltar or the UK, carry a charge of £2 per transaction if effected on a shared cost basis. This is the same fee for issuing or receiving a cheque. Incoming payments to your account are free of charge.
If you have any questions, please do not hesitate to contact your Relationship Manager.
