Write a check

Write a check

Write a check

Written checks have a special tie to Christmas. They’ve been used for transfer of funds since the early 15th century.Checks may be cashed or deposited. When the payee presents a check to a bank or other financial institution to negotiate, the funds are drawn from the payor’s bank account. It is another way to instruct the bank to transfer funds from the payor’s account to the payee or the payee’s account. Checks are generally written against a checking account, but they can also be used to negotiate funds from a savings or other type of account.A check is a written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer. The person or entity writing the check is known as the payor or drawer, while the person to whom the check is written is the payee. The drawee, on the other hand, is the bank on which the check is drawn.


A check is a bill of exchange or document that guarantees a certain amount of money. It is printed for the drawing bank to give to an account holder—the payor—to use. The payor writes the check and presents it to the payee, who then takes it to their bank or other financial institution to negotiate for cash or to deposit into an account.Checks can be used to make bill payments, as gifts, or to transfer sums between two people or entities. They are generally seen as a more secure way of transferring money than cash, especially when there are large sums involved. If a check is lost or stolen, a third party is not able to cash it, as the payee is the only one who can negotiate the check. Modern substitutes for checks include debit and credit cards, wire transfers, and internet banking.

Check cards, first created in the 1960s, were the precursors to today’s debit cards. While not all checks look alike, they generally share the same key parts. The name and contact information of the person writing the check is located at the top left-hand side. The name of the bank that holds the drawer’s account appears on the check as well. A series of coded numbers are found along the bottom edge of the check, directly underneath the memo line and the payor’s signature line. These numbers represent the bank’s routing number, the payor’s account number, and the check number. In certain countries, such as Canada, the routing number is replaced with an institution number—which represents the bank’s identifying code—and the transit or branch number where the account is held.(Source:www.investopedia.com)



On the "For" payee line, you'll need to write the name of the person you're paying in clear, legible handwriting using black or blue ink. Make sure to use their properly spelled legal name (so not a nickname), or the recipient may have trouble cashing or depositing the check. You can also put a business name on the payee line if you're buying from a company or service provider.Some people may write a future date on their check, though this is generally not recommended. This is called "postdating" a check, and it can encourage the recipient to hold off depositing the check until a certain date. This can be beneficial if you're waiting to have enough funds in your account to cover the payment, but there is also risk.

According to the Office of the Comptroller of the Currency, banks aren't required to wait until that date to process the check. If the recipient were to deposit it earlier, you could risk over-draftiNext, you'll need to enter the payment amount. In the blank box on the right side of the check, write the amount in numbers (e.g., $150.99). On the longer line under the payee's name, write the amount in words (i.e., one hundred and fifty dollars and ninety-nine cents). Make extra sure these two amounts match, or the recipient won't be able to deposit the check. Justin Pritchard, CFP, is a fee-only advisor and an expert on personal finance. He covers banking, loans, investing, mortgages, and more for The Balance. He has an MBA from the University of Colorado, and has worked for credit unions and large financial firms, in addition to writing about personal finance for more than two decades. (Source:www.thebalance.com)



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