Steps to writing a check
Step 1: Write the date
On the top, right-hand corner just below the check number is the space given to write the date. Write the date there in the standard format used in the U.S which is the month followed by the date and then the year. You can write it out in one of the several formats, such as 10/20/2008, Oct 20, 2008, or October 20, 2008.
As a rule, you’ll essentially enter the date the check is being composed. In any case, in case you’re not exactly prepared for the assets to be pulled back from your financial records, you can likewise “postdate” a check, which implies entering a future date. For instance, on the off chance that you’ll be out of town when your lease is expected, you might need to present your lease early, however, postdate your check.
Be cautious with postdating, however. Postdating a check can urge the beneficiary to hold up before getting the money for or storing the check, yet as indicated by the Consumer Financial Protection Bureau, banks and credit associations can generally cash huge money checks before the composed date. Regardless of whether a monetary organization is required to regard the post-date fluctuates by state. A few states give that the bank or credit association shouldn’t cash the check before the date given on the off chance that you give it a sensible notice. Check your state’s laws to perceive what applies to you.
Step 2: Write the recipient’s name
Then you have to write the recipient’s name and it has a designated space on check usually known as ‘Pay to the order of. This row can be utilized by writing the name of the individual or organization that payment is going out. In the case of cash payments, you can simply add ‘cash’ in that row. The only problem with this method is money loss in case of stealing.
Make sure to write the complete name whether its an organization or name of a person. It is important to add a full name for the check to be drawn by the right person or company.
What if you have to write two names in the recipient column?
What do you do if you have to write two names in the recipient column? Well, it is easy just put the word “and” or “or” between the names. For example, “John Doe and Jonas Black” or “John Doe or Jonas Black.” The word “and” means that both parties must endorse the check and, in some cases, have a joint account at the financial institution they are negotiating the check at. If you write the word “or” between the names, either party can present the check for payment at their financial institution.
Step 3: Write the amount of the check to the right of the dollar sign.
Write the exact amount using dollars and cents both, for example, “$125.49” or “$25”. The writing amount should be clean and easy to read so you do not face anything wrongly charged on your account. The ‘$’ is already printed you do not have to write it again.
Step 4: Write the payment amount in alphabetical form
Then you again have to write the paying amount in words just below the row of a payee. Make sure that you write the amount in words exactly same as you wrote in numerical digits to avoid any issues in clearance.
For adding decimals (cents) after your payment, in an alphabetical row, you can write it like ‘one hundred sixty-two and 32/100’ if you are paying $162.32.
For not including cents, you can simply write the amount but if you want to clarify your amount more then you can ideally add 00/100.
Then draw a line through the remaining space in the field so no one else can add to the amount.
Adding amount in numeric digits as well as alphabetically allows the bank to be clear on the sending amount from your side.
Step 5: Sign the check on the line in the bottom right corner
Your check will be deemed invalid if not signed by you personally. So sign your name on the line at the bottom right-hand corner using the signature you used when you opened the bank account. This shows the bank that you agree that you are paying the stated amount and to the correct payee.
Any owner of a joint bank account can use their signature for a check to become valid for cash.
If the check is not signed it is considered as invalid by the authorities and the recipient cannot cash or deposit the check.
Step 6: Fill out the memo section on the bottom left of the check.
Memo section is useful for keeping a history of your payments. It is totally up to if you want to add details there or not. You can add the amount, notes, beneficiaries, and other information to keep check and balance of all your checks.
Some extra things you should look out for in the check:
check number is Unique
Unique numbers are alloted to each and every check to create history with unique IDs. These numbers are placed on top and on bottom of a check to keep clarity throughout.
Routing number for Bank
In case of electronic check clearing, routing number is important as bank takes that number into account for transaction. It contains 9 numbers starting from 0 to 3 and also separated by “|:”
Account number is Important
Account number for the holder will remain constant throughout your check-book. On the check, you can see this number as well. It is denoted by the special symbol “||”
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