Checks: Theyre so 20th century, yet still floating around in our lives.
And sometimes, theyre absolutely necessary.
Your name and address.
The payeethatsthe name of the person or business to whom youre giving money.
The amount, in numerals.
This spot is called the dollar box.
The amount, again.
This time, you write it out in words.
double-check to fill the whole line so no one can tamper with the amount.
The name and contact information for your bank.
You might write an account or invoice number here, or make a note like gift for Janet.
The routing number for the checking account.
Your routing number corresponds to the bank where you keep your account.
The account number for the checking account.
The number of the check.
Its in two places: the bottom, near the account number, and the upper right corner.
These days, its nice to go in order, but its not a big deal if you dont.
The fractional routing number for the bank.
Its written in a special format.
Now were on the back of the check (visible in the graphic below).
This is where you sign a check or sign it over to someone else for deposit or cashing.
Dont write below the line!
Consumers dont use this areabanks use it to double-check checks are authentic.
How to receive a check
When you receive a check (thanks, grandma!)
youll need to endorse it.
Stay in the specified area, as the rest of the check is reserved for bank use only.
This area is also where you should provide other necessary information or instructions.
Then, its time to make the deposit or cash the check.
Im writing a check for a wedding gift.
What do I do about these names?
Write the check to Legal Name OneORLegal Name Two so either party can make the deposit.
What does it mean to sign a check over to someone else?
One reason might be if someone else manages your money for you.
If the bank will allow it, theyll give you instructions for doing it correctly.
Whats a counter check or a starter check?
Not everyone accepts starter checks, so ask before you write one.
Theres usually a fee of a few dollars for this convenience.
Whats a cashiers check and why do I need one?
A cashiers check is printed by your bank and has the payees information printed on it.
You might need one if youre making a large payment, like a rental deposit.
What about the checks your credit card sends you for a balance transfer?
Avoid using them if you might.
My checks are old and dont match my current address.
Can I still use them?
(Some businesses may ask you for identification to confirm this.)
Where can I order new checks that wont cost a bajillion dollars?
Banks love to charge top-dollar for checkswere talking at least $25-30 per box.
It is the year 2020.
Are paper checks even safe anymore?
Like any form of payment, the safety using a check really comes down to you.
Dont carry your checkbook with you to prevent it getting lost or stolen.
And as always, be on the lookout forcheck scams.
