A check is a document instructing a bank, mobile wallet, or credit union to pay a specific amount of money to the bearer. The writer or entity who writes the check is the drawer or payor, while the person to whom the check is written is the payee. The financial company on which the check is drawn is called the drawee. But can you deposit someone else’s check in your account?
You will learn about whether you can deposit checks in someone’s bank account shortly, so just hang around. You can deposit or cash a check. When you present a check to the cashier at a bank or any other financial institution, the money is drawn from the payor’s bank account to your bank account. The payor must sign the check properly for the check processing to go through.
It is also helpful to ensure that you have sufficient funds in your account before writing a check. If you write a check with insufficient money in your account, the check usually bounces. The bouncing of checks can be disastrous to your banking history, especially if you write many bouncing checks as you may enter in the ChexSystems. ChexSystem is a body entrusted by the federal government to keep records of people with poor banking practices.
How do you write a check?
Before you write checks, you need to open a checking account. There are checking accounts with no ChexSystems that you can open to get started. Checks are typically written against a checking account. You can also write a check to negotiate funds from a savings account as well.
Writing a check is a straightforward activity. You may be hearing about checks for the first time and thinking that they are complicated documents. Well, that is not the case. The following is the procedure to write a check.
i) Date your check
Start by writing the correct dates on the right-hand corner of the slip. Dating a check is very important as it helps to show the person you are writing the check the exact date you paid them.
ii) Write the name of the person to benefit from the check
On the space written “Pay to the order of,” is where you will write the name of the person, institution, or company you are writing the check for. If you do not know the beneficiary of the check, you can just write “cash,” and you are good to go. Such cases are when you decide to write random checks to help random people in one way or the other.
The only problem with the check that has the “cash” option is that you can lose money if someone else collects it. Anybody can cash out with a check that does not have a specific payee.
iii) Write the payment amount in figures
You will see another field where you should write the amount of money you want the payee to receive in numbers. An example is something like $100.45. When writing your check, you must be specific to ensure that it has the exact amount you wish to pay. If your writings are not clear, then your check processing may not go through.
iv) Write the amount in words
The next step is writing the amount in words. The amount in words should read exactly what you have written in figures. If you do not ensure that the amounts read the same, processing the check becomes impossible. The primary reason why you have to write the amount both in words and in figures is to prevent theft of your money.
v) Write a memo
You can write why you are making the payment. If the check is for the electricity bill, you have to write “Electricity bill” in the space provided. You can as well skip this part since it is optional. However, if your payee requires you to write a memo, then you have to comply.
Service provider companies usually require you to write your account number in the Memo area. Even though you can send money with a checking account number instantly to the account of your service provider, most companies prefer check payment.
vi) Sign your check
You have to sign the check-in space provided at the bottom. Make sure that you use the same signature that you used when opening your account. If the signatures differ, the check may not go through.
Signing your check proves to the bank or any other institution that you allow the withdrawal of the funds. This is the last part before you send the check to the concerned person or company.
How to cash out a check
When you receive a check, you have to cash it out to get the exact amount of money in the check. You can either transfer the funds to your bank account or get the cash to carry out various transactions.
You can cash out your check online or at a physical branch. To cash out a check at a bank or credit union’s branch, you should take the check together with your identification document. For easy processing, you have to visit the institution where you opened your account at. You can follow the steps below to cash out a bank account.
- Ask about any fees for cashing your check. If possible, check on the cheapest option for getting your money.
- Sign the back of your check slip to endorse the check.
- Fill out a deposit slip and sign it.
- Show valid identification documents to the teller.
- Get your cash or have it deposited in your bank or credit union account.
Putting money in your bank account is the best way you can keep your funds safe. Even if you lack a bank account, you can open a free online checking account with no opening deposit at most banks. Even if they require a deposit amount, your check will provide a deposit amount to your account if at all the amount is enough.
You can also cash out a check using some mobile money wallets. They include Cash App and NetSpend, among others. You first need to sign the check at the back and then open your application’s camera to take photos of the checks. The system then uploads the checks, and you can wait for the funds to reflect in your account.
Checks usually reflect on the next business day. Some institutions may send you a text message notifying you that your account has entered the amount.
Can a second chance account allow check deposits?
Some banks offer second chance checking with no opening deposit. However, the accounts come with many restrictions, including the inability to write a check, lack of a debit card, and so on. However, it is possible to deposit a check in a second chance account.
Can you deposit someone else’s check in your account?
One may not cash out a check-in person at times due to unavoidable circumstances such as sickness or commitments. In such a case, one may have to present their check to someone else to cash out on their behalf.
Therefore, it is possible to deposit someone else’s check in your account. The owner of the check has to write “Pay to (your full name).” Again, they should sign the back of the check to authorize the withdrawal.
However, it is good to inquire whether your bank or credit union accepts endorsed checks. Wells Fargo, Bank of America, Chase, TD Bank, among others are some financial companies that accept depositing checks from someone else.
There are no legal restrictions preventing people from depositing other people’s checks in your account. As long as you are willing to do so, then you are free to proceed. By the way, the checks written “cash” with no specific payee are easy to cash out even without the recipient’s signature.
When you cash out a check, you indirectly withdraw money from the checking account of the payor. Remember that banks accept checks with the “For Deposit Only” mark.
Can you cash out a check without a bank account?
It is possible to cash out even if you do not have a bank account. Cashing out without a bank account also allows people with no bank accounts to get cash out of their checks. The following are options to cash out a check without a bank account.
- Cash at the issuing bank (the bank name is pre-printed on the check).
- Cash a check at a check-cashing retailer. (these include discount department stores, grocery stores, and so on.)
- Deposit at an ATM onto a prepaid card account or even a checkless debit card account.
Even though most financial companies require you to present your identification document when cashing out your check, using an ATM to deposit a check eliminates the need to use your identification document.
However, having a bank account is more advantageous. It is easy to open an online bank account with an instant debit card for various transactions.
Bottom line
A check is a written and signed document instructing a bank, mobile wallet, or credit union to pay a specific amount of money to the bearer. When writing a check, you have to include the payee’s name, the amount in words, and figures. If you do not know the recipient of a check, you should write “cash.” ATMs also allow you to deposit checks.
