Wednesday 12 October 2016

How To Adorse A Check

Sign here please! Checks are negotiable instruments, which simply means they are a promise by one person to pay a specific amount to another. By endorsing a check made out to you, you can deposit or cash it to obtain the amount of money indicated on the check. Knowing how to endorse a check, and the different types of endorsement you can use, is a critical part of managing your personal finances.

Method 1. Endorsing A Check With A Signature

Make sure that the check information is correct. The person who gave you the check needs to have written your name, their signature, the date, and the amount of the check (both as words and as a number). Without all this information, your bank may not be able to process the check.
If the person who wrote your check made a mistake, go to the person and request a new check. Some banks will accept a check that has been corrected with initials, but this can also look suspicious. Getting a new, correct check will make it less likely that you will encounter any problems at the bank.
If someone wrote a check to you with incorrect information, then the old check will have to be voided. It is also a good idea to shred any checks that you cannot use.
Find the grey lines on the back of your check. Flip over the check and look for the grey lines located on the upper part of the check. Sign your name on one of the lines as it is spelled on the face of the check.
Most checks say "do not write, stamp, or sign below this line" beneath the endorsement area, because the bank needs this space to document their completion of the check.
Sign your name on one of the grey lines. To deposit or cash your check, all you need to do is sign on one of the grey lines. Nothing else is required to endorse a check.
If more than one person is listed on the check and their names are connected withand, then both people have to sign the check in order to endorse it. If the names are separated by or, then just one person has to sign the check.
Make sure your endorsement is within the endorsement area to prevent confusion or error at the bank.
Make sure the name you sign matches the name on the check. For example, if the front of the check says "Bob Johnson," don't sign your name "Robert Johnson." Likewise, if your name is misspelled on a check (e.g., Sara Jones, if your real name is Sarah Jones), then sign the check as it is written on the front of the check. You can then write the correct spelling for your name below it.

Take your check to your bank to cash or deposit it. Ask the bank teller to deposit the check into one of your accounts, or simply exchange it for cash. Keep in mind that an unrestricted endorsement (a signature alone) means that anyone who has the check can cash it. Because of this, you should protect a signed check like you would cash. Consider waiting until you get to the bank where you will deposit your check to sign it.
If you don't have a bank account, you can cash your check at the bank of the person who issued you the check. The bank's name should be written on the face of the check. Note that the issuing bank may or may not charge a fee for cashing your check.

Method 2. Endorsing A Check For Deposit Only

Write "For Deposit Only" on the top endorsement line. This type of endorsement restricts the way the check can be used, specifying that only the person listed on the face of the check can cash or deposit it. By using this restrictive endorsement, you ensure that if you lose the check or need to have someone else deposit it for you, no one but you will be able to use the funds.
This type of endorsement is most effective if you are mailing your check for deposit, or are giving it to someone else to deposit on your behalf.

Sign the check on the next line. Make sure that you conserve enough space to write the rest of the information you need. This signals that you wish to exercise your rights to the check writer's promise to pay. Your signature is required no matter what type of endorsement you exercise.
Note that if the signature is above "For Deposit Only," the check technically becomes a bearer instrument and could be modified by someone else.

Include your bank's name and your account number. On the next line down, you can write your bank’s name and your bank account number. This will ensure that the check can only be deposited at the bank you specify, and to the account you have chosen. Make sure you write the number of the account you want the check deposited into.
This is a restrictive endorsement because it specifies the account that you wish the check to be deposited to. This kind of endorsement is useful when you have someone else deposit your check, such as an employee. Anyone who has access to your check will only be able to deposit the check into your account.
While it may be a good idea to protect your check with a restrictive endorsement in some cases, you should also protect your bank account information. Your bank account number is important, and you should protect a check that you have endorsed with your account number to avoid identity theft or fraud. Place the check in a sealed security envelope and only allow people you trust to make deposits for you.


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