For those who write out checks regularly, the process becomes almost automatic. However, if you haven’t written many checks, it can be confusing. Checks are being superseded by electronic transfers, but they aren’t obsolete yet. Show
Here are the steps needed to know how to fill out a check and explain the numbers preprinted on each one. Key Takeaways
The Steps of Writing a CheckImage by Sabrina Jiang © Investopedia 2021
The advent of online banking means you can check your paper file against the electronic one. Routing Numbers, Account Numbers, and Check NumbersThe numbers running across the bottom of the check represent the following: Routing transit number. The first sequence of numbers represents your financial institution’s routing transit number. This code identifies your bank, allowing the check to be directed to the right place for processing. Account number. The second sequence of numbers is your unique account number. It was assigned by the bank when you opened the checking account. Check number. The last sequence of numbers is the check number. It is also featured at the top of the check, beneath the date. It helps you track the payment later if needed. Balancing Your CheckbookWhen you write a check, spend cash, or make a deposit into your checking account, you can use the check register in your checkbook. This section of your checkbook is meant to act as a recorder of all of your financial transactions, including ATM withdrawals, online transactions, debit card payments, and check writing. By writing it all down, you can see how much money is going in and out of your account. By hand-recording your transactions either with an online register or a paper one, you may safeguard against spending money that has not to shown up or withdrawn out of your bank account. It can take a few days for transactions to show online, and it is easy to forget a transaction if you don't record it shortly after it occurs. Check your balance in your account before you write checks, so you don't write a bad check. Practical AdviceMost banks and credit unions allow you to do your banking online, which may be more secure than sending out or keeping track of paper checks. However, if you use paper checks, keep a few things in mind when using checks. First, when writing one, always use a non-erasable pen, preferably in blue or black ink. Don't let anyone add numbers to your check by writing out the amount by starting on the far left of the assessment and drawing a line after the last digit to keep it from being added to. Double-check to ensure you have signed your checks properly using your full legal name, and write the correct date out as well. Keep your checkbook as well-protected as your wallet, don't leave it lying around, and make sure to keep the carbon copy of each check written. Try to avoid writing out checks for cash, too, and order checks directly from your bank regularly to keep from running out of paper checks, especially if you use them often. Special ConsiderationsWhen you cash a check made out to you, it needs to be endorsed, which means you sign the back of the check on the appropriate line and add the date. Most banks provide a few blank lines and a mark to indicate where to sign the check. You must sign in the right place, or the check may be invalidated. You can deposit a check once you have endorsed it, at a teller window or an ATM at a branch of your bank. You can also electronically deposit by taking a picture of the front and back of an endorsed check and using your bank's deposit app. It's easy to order new checks when you need them, and often you can order checks directly online from your bank or order them at your bank. The Bottom LineWhile the ability to pay online from a checking account has greatly reduced the need to issue paper checks, there are still times when one is needed, so it is essential to know how to fill it out correctly. In addition, knowing how to write, endorse, and deposit a check is an integral part of early financial education. How Do You Write a Check for Blank Checks?You fill out the name, date, and amount both in numerals and long-hand (the legal figure) and sign it. What Happens If You Write a Check With No Money in Your Account?If you write a check and have no money in your account, it will be returned for insufficient funds. Writing a check without money in your account, willfully or by accident, the person you wrote it out to won't get paid. Your bank account will become overdrawn so that you will have a negative amount in your checking account, and you will be hit with fees for a returned check. What Is Bouncing a Check?Bouncing a check means you have written a check without having money in your account. Who Gets Charged for a Bounced Check?The person who wrote the check gets charged fees for a bounced check. Can You Write Yourself a Check?Yes. It is legal to write a check to yourself. How do I write a personal check to someone else?Write “Pay to the Order of” and the third party's name below your signature. It's important to write the name of the person that you are signing the check over to in the endorsement area under your signature. This signals to the bank that you are endorsing the transfer of ownership for the check.
Can I pay someone with personal check?You can use checks to pay for almost anything. As long as the recipient (or payee) agrees to accept a check, that's all that matters. If you buy groceries, pay insurance premiums, or pay rent, a personal check is probably an acceptable form of payment.
What information do you put on a personal check?Your check should contain your name, address, and nothing more. Only write your phone number or driver's license number on your check if a merchant asks for this information. More information makes it easier for identity thieves to impersonate and harm you. Protect Checking Account Information.
How much can I write a personal check for?There is no dollar limit on personal checks. As long as the funds are available in your bank account, and a personal check is an accepted method of payment, you can write a check for any amount. That said, in many cases a cashier's check may be a more desirable method of payment for large purchases.
|