Dealing With Checks

Checks are not as widely used as they once were. So, what are they? What can they be used for?

• Checks are used for things that you wouldn't normally give your credit/debit card number out for and is an alternative for paying cash.
• One of the most common check payments for college students is rent payments. Sometimes, the owner of the house/apartment will want checks as payment, plus it serves as proof of payment.
• Most of the time, students' interaction with checks is limited to paychecks

 How to Write a Check

1. Write the date. A check cannot be cashed prior to the date written here.
2. Indicate who the check is going to. If you are paying a bill, the bill will usually specify "Make checks payable to...". If you are confused, it never hurts to ask.
3. Write the numerical amount of the check in the box.
4. Write the words of the amount in step 3. For example, if you are writing a check in the amount of $43.98, you would write "Forty-three and 98/100". If there is any space remaining on the line, draw a line through that space. This prevents anyone from altering the amount.
5. This is optional but it can be useful to make a note of why you were writing the check.
6. Sign the check. The check is not valid until you do so.

 

CHECK NUMBER: Allows you to easily identify a check in a registry, on your statement, etc.

ROUTING NUMBER: Identifies your bank and allows financial institutions process the check 

ACCOUNT NUMBER: Identifies your account number with the bank

Endorsing a Check

Blank Endorsement

• When you sign the back of the check and that's all
• Easiest but most dangerous
• Only do this if you're at the bank getting ready to deposit the check

Restrictive Endorsement

• Signing and including your account number with your endorsement
  
            Example: "For deposit only to account #####" OR "For deposit only to account of [your name]
  
  This restricts the check from being deposited to an account other than the one you specify.

No Endorsement

• Some banks don't not require you to endorse the check before depositing it
• Keeps information private

Additional Information

• Checks have the benefit of a paper trail - many banks provide an image of your written checks as part of your monthly statement.
• Checks you write include your account number, name and address - don't leave them laying around & only give them to reputable people/business.
• If you don't keep track of the checks you write, you could overdraw your account and have to pay a "bounced check" fee.