Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
50% - Moderately

Cheque Clearing

Synonyms:cashed, cleared, deposited, honoured
Filed Under: financial-banking
Tags: bank account, banking

Definition of cheque clearing

cheque clearing
1. You write a cheque to pay your telephone bill. The telephone company sends the cheque to its bank to be deposited in its account. The cheque winds its way through the system and, eventually, your account is debited for the amount of the cheque. When that happens, the cheque is said to have "cleared."

Related Terms and Acronyms:

  • cheque (CK)   A written order for payment of a certain amount of money.
      ➥  Bank account transaction code.
  • cheque hold   The length of time that a financial institution can legally hold a cheque before crediting a customer's account balance and allowing the customer to use the funds.
  • cheques returned with statement   Cheques that are cancelled are returned to the account holder in a monthly statement.
  • insufficient funds (ISF)   When funds are not enough to satisfy the payment of a cheque or draft made on that account; also known as non-sufficient funds (NSF).
  • overdraft minimum amount   Minimum amount that will be transferred to the accountholder's account if a potential non-sufficient funds (NSF) situation occurs.
  • overdraft protection   A service that allows a chequing account to be linked to another savings or line of credit to provide protection against insufficient funds or overdrafts.
  • payor   One who makes a payment to another party.
  • personal consumption spending   What households collectively spend on goods and services.
  • personalized cheque   A cheque which has your name and account number printed on it.
  • settlement points   Regional collection points in the clearing and settlement system operated by the Canadian Payments Association. Settlement points forward each bank's regional balance to the Bank of Canada in Ottawa at the end of each day to allow the central bank to adjust the banks' balances with the central bank.

More Related Terms and Acronyms

Search the Glossary

Mortgage Rates
Check out how we stack up against our competition and compare our mortgage rates.
Mortgage Rates
Best Mortgage Rates
With a lower mortgage rate, it's easier to afford a better home and what you save on interest can go directly toward paying off the principal value of your property faster. Make sure you get the best rates in Canada on your mortgage, apply today.
Mortgage Rates
Try Our Mortgage Calculator Now
Did you know that by increasing your down payment from 5% to 20% on a $500,000 home you can save yourself almost $11,000 in interest and over $13,000 in CMHC mortgage insurance premiums? Try our mortgage calculator and find out how a simple change in your down payment amount can save you thousands of dollars.
Calculator Buttons