Check Writing Mrs. Flowers Finance & Business Technology 1
Check Writing In the U.S., you write a check using your checking account. You can write a check up to the monetary balance you have in your account. However, if you have overdraft protection, you may be able to write a check for a higher amount (normally fees will apply). 2
Check Writing Bouncing a check (having a returned due to insufficient funds) is an offense in the United States. The merchant (to whom you wrote the check) may charge you around $30 to $35, and you bank may charge you another $25 to $70. – These fees can add up for each check you write that goes over due to insufficient funds If the amount is large, the recipient may take legal action against you in court, and you may wind up in jail. 3
Check Writing It is absolutely fine to write a check for small amounts, like $2. Most people in the U.S. carry little or no cash with them and pay with credit card or check. You can write a check to yourself by writing “Cash” on the payee field. (when in the bank the teller will cash the check and pay you) 4
Sample Check 5
Date (1) The date format in the United States is Month then Date then Year. You can write it out in one of several formats, such as: 02/14/2011 Feb 14, 2011 February 14,
Date Cont. You can post date some payees What does post date mean? Post date = to put a date on a check that is later than the actual date If sending a check that has a due date in the future you can date it for the future date and the company will place it in the bank on that date 7
Payee (2) Write the name of the person or company to whom you are paying money with the check. 8
Amount in Numbers (3) Write the amount in numbers Example: Note that the $ sign is already pre-printed Therefore, you do not have to write it again 9
Amount in Words (4) This will be the same amount that you wrote in the dollar box. One hundred twenty seven and 89/100 *This is the amount a bank will go by if the amounts are different 10
Amount Cont. Many shops, especially larger shops like Walmart and Winn Dixie, will allow you to write an amount over your store total This can be a way to get cash back on your transaction for no fee *Typically this amount is no more than $20 over your total 11
Memo An optional description of the nature of the payment. You can write something like “phone bill”…. “rent”…. “guitar lesson” If you have an account number with the payee, you should mention that account number here That way if the check and payment stub are separated at the company, they can keep track of whose account to apply the payment to 12
Memo (5) 13
Signature (6) Your signature, the same way you wrote it when you opened your bank account If you have a joint account, and if there are multiple signatories, any authorized person can sign 14
Check Number (7) Each check has a different check number. Please note that the check number appears twice on the check – once at the top right corner and once at the bottom center 15
Routing Number (8) This is the routing number of the bank that facilitates electronic clearing of a check This number will be the same for almost all account holders at your bank 16
Account Number (9) Your bank account number and is the same on all your checks 17
When there is more than one tenant on the check, what did we learn about “and” & “or” in regards to joint tenants? “And” is used for joint tenants in common where each person on the check must sign the signature line of the check in order to be a valid check. “Or” is used for tenants with rights of survivorship where anyone on the check can sign as a single signer 18
Filled Out Check 19
Practice Check #1: Walmart buying groceries for a total of $ and you want $20 cash back and it is today’s date. Check #2: Paying your rent payment that is due May 1 st. You live in Regal Pointe Apartments. Post date the $850 rent payment for May when it is due. Check #3: You forgot your ATM card and are on vacation and stop in your bank “Wachovia Bank” and want to cash a check for yourself in the amount of $100 using today’s date. 20