Using a cheque to transfer money from one bank to another in Nigeria

Posted by Felix Okoli on Wednesday September 28, 2016 at 15:12:8:

Is it possible to transfer money from one bank to another using a cheque? Yes it is and one way many of us are already used to is by depositing the cheque at the beneficiary's bank similar to how a person would deposit cash using a deposit teller. You'd need to fill in a deposit teller but instead of filling in the cash details, it will be the cheque details that you'd fill. There is also another way which my Dad taught me and that is by simply dropping the cheque at your bank while also including the person's account details at the back of the teller.

Ways to transfer money with a cheque in Nigeria
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There are 2 ways I know one can use to transfer money from one bank to another using a cheque book and they are:

Option 1. By depositing a cheque at the beneficiary's bank.

Option 2. By depositing a cheque at the issuing bank and indicating transfer details at the bank.

Let's assume your name is Mr Uzoma having a a current account at UBA bank and you want to transfer money to Mr Segun having an account at GTbank. You can do this by writing a cheque and indicating how you want to do the transfer on your written cheque using either option or 2.

If using option 1, you would have to write the person's/beneficiary's name on the cheque e.g. Mr Segun and it would match the account name he registered with his bank. You'd also have to sign the cheque with your usual signature. Other details you'd need to fill in are the amount in words and figures as well as the date. You'll then have to deposit the cheque at a bank using a deposit teller and into his bank account. Option 1 takes a lot of time and that's why I prefer avoiding it.

If using option 2, you have to first of all write in your bank's name as the beneficiary e.g. UBA PLC and then write the persons's account name and bank account number at the bank of the cheque so that your bank knows it's a transfer. Then, you'd also fill other details such as the date, amount and include your signatures too where applicable. Hand the cheque over to the bank staff and they'll do the transfer for you within 24 hrs. You don't have to fill any deposit slips or visit the beneficiary's bank to do this type of transfer.

So, in summary, you can transfer money to another bank in Nigeria with your cheque by either depositing it at the receiving bank account accompanied by a bank deposit slip or just dropping the cheque at your bank and including the transfer details at the back of the cheque. When using the second option, remember that the name to write on the from of the cheque is your bank's name while if it's a cheque deposit with a teller, the name will have to match the receiver of the cheque. It's really easy and many Nigerian banks offer this service.