When you grew up within the millennial or Gen Z generations, you in all probability consider checks like cassette tapes: some folks nonetheless use them, however by and enormous they’re a relic of a bygone period.
Today, direct deposits, apps, and card funds rule most monetary transactions. However typically, there are conditions that decision for writing checks or depositing them, so it helps to know how one can take care of them.
A number of the vital issues to know embody:
- The way to write a test with cents
- The way to signal over a test to another person
- Can I write a test to myself?
- Can I deposit a test for another person?
Let’s dive into these questions on writing checks!
The way to write a test with cents
To begin with, right here’s what a test seems to be like so that you can reference throughout these directions:
Let’s go high to backside to indicate how one can write a test!
The “Date” line is self-explanatory—the date you’re writing the test. (
On the primary clean line with “Pay to the order of,” in entrance, you’ll write the recipient’s identify.
Within the little field with the $ in entrance, you write the numerical quantity you’re paying. This takes a traditional dollars-and-cents format: “$99.99”.
The second clean line is the place it’s worthwhile to know how one can write a test with cents, as a result of it’s a little bit completely different. You write the greenback quantity as phrases (ninety-nine), and the cent quantity as a fraction out of 100 (so, 99/100 for 99 cents).
All collectively, $99.99 on the second line of a test interprets to “Ninety-nine and 99/100.”
Let’s make the numbers even greater and do $150.25: “100 fifty and 25/100.”
Make it 4 digits with $1200.50: “One thousand 2 hundred and 50/100.”
When you get used to writing a test with cents, it makes loads of sense. Writing the cents as a fraction saves loads of house in comparison with writing out “ninety-nine cents” as phrases.
Okay, let’s end the test! On the backside of the test, you’ll see a line that claims “For” or “Memo”. That is non-compulsory to fill out. You’ll be able to select to write down the aim of the test, like “Hire” or “Toyota Camry,” however you don’t should.
The final a part of the test, subsequent to the memo line, is the signature line. That is the place you signal to authorize the fee.
The way to signal over a test to another person
What precisely does it imply to signal over a test? In brief, it means you’re attempting to switch or pay somebody with a test that another person wrote to you.
For example, say that you simply obtained a test for $500, and also you owe your buddy $500. You would possibly determine it’s less complicated to simply signal that test over to them, as a substitute of depositing the test in your account, ready for it to clear, after which writing a brand-new test to them (or transferring the cash one other method).
So, how do you signal over a test to somebody? Listed below are the steps:
- First, ask them to verify that their financial institution will settle for a signed-over test, as not all banks wish to take them.
- Flip the test over to the again, the place there will likely be an area that claims “Endorse test right here.”
- Put your signature in that space like regular
- Beneath your signature, write “Pay to the order of [name of person you’re paying]”
- Give them the test—all set!
Signing over a test isn’t troublesome, so crucial half is simply ensuring your payee’s financial institution will settle for the third-party test.
Can I write a test to myself?
When you have a number of financial institution accounts, you would possibly surprise, are you able to write a test to your self?
The quick reply is that sure, you may.
The way to write a test to your self: all it’s a must to do is fill it out like another test, along with your identify within the Payee part. If you wish to deposit it in one other account, signal the again and write “For deposit solely.” If you wish to use the test to get money, you may write “Money” within the payee line (simply be sure that to not lose it, as a result of this implies anybody might money it!).
Nevertheless, most banks have higher instruments for shifting cash than writing a test to your self. For example, you may do an digital financial institution switch between your accounts. If you would like money, you may withdraw money from an ATM utilizing the debit card related to your checking account.
But when writing a test to your self is the best choice in your state of affairs, you may completely try this!
Can I deposit a test for another person?
When you’re operating errands and your accomplice wants a test deposited, is that potential? Are you able to deposit a test for another person?
Sure! So long as the test payee is ready to endorse the again with their signature, it shouldn’t be an issue. In the event that they aren’t in a position to signal the again (e.g. they’re on a visit and wish you to deposit the test), you may write “For deposit solely” on the again earlier than you’re taking it to the financial institution. The teller shouldn’t have an issue depositing it into the payee’s account so long as the names match.
Checks nonetheless won’t be your favourite methodology of fee, but when it’s a must to use one, now you know the way!
Kate is a author and editor who runs her content material and editorial companies remotely whereas globetrotting as a digital nomad. To this point, her laptop computer has accompanied her to New Zealand, Asia, and across the U.S. (principally due to bank card factors). Years of analysis and ghostwriting on private finance led her to the FI neighborhood and co-founding DollarSanity. Along with touring and outside journey, Kate is keen about monetary literacy, compound curiosity, and pristine grammar.