The easiest way to endorse but also the most dangerous is to simply sign the check without adding any restrictions. To use that method, known as a blank endorsement, sign your name in the endorsement area. See "Blank endorsement" in the example. If you plan to mail the check to your bank, deposit it at an ATM, or carry it around for a while, use a different approach.
Blank endorsements are risky because somebody else can steal the endorsed check and potentially cash it or deposit it to a different account. A restrictive endorsement helps ensure that a check gets deposited into a particular bank account. See "Restrictive endorsement" in the example. To use this method, include your account number with your endorsement, and provide instructions saying the money can only be deposited to your account. To do so, write "For deposit only to account " using your account number , as part of your endorsement.
If the check gets lost or stolen, it's more difficult for thieves to get your money—they'll need to alter the endorsement. An alternative to including your account number is to write "For deposit only to account of payee," which would require thieves to have access to an account in your name.
Depending on the situation, you might or might not also have to sign if you specify an account number. You can try to sign a check over to somebody else, effectively paying that person with the check you received. To sign a check over, write "Pay to the order of Be aware that some banks do not allow this type of endorsement because the technique is sometimes used for theft and fraud.
You don't always have to endorse checks. Some banks allow you to deposit checks without a signature, account number, or anything else on the back. Skipping the endorsement can help keep your information private. Checkwriters can often view images online of processed checks, including the endorsement area, after checks are paid. With no endorsement, nobody can see your signature or your account number unless your bank adds the account number during processing.
In some cases, it's not clear who should sign the check. Again, the person receiving the check needs to endorse it. The person who initially wrote the check already signed on the front. See front and back of check example. If a check is payable to you and somebody else, how should you endorse it? Every check has a specified area on it where the payee can write their name or other information.
Typically, this involves writing the phrase "Pay to the order of: Your Name" and signing their name underneath your check. Again, be sure to check with your financial institution to make sure that you are going through the process correctly. Depositing a check for someone into their own account is a bit more straightforward as it does not involve the transfer of payees.
If you can, it is a good idea to get a deposit slip from the person who wants you to deposit the check. They can write their account information on it, sign the back of their checks, and all should go smoothly at the bank.
This also means you'll have a clear record of the money you deposited to give to the payee. If you cannot get a deposit slip, you can have the payee write "For Deposit Only" on the back of their check, along with their account number, and then sign it.
If you or someone else needs to deposit a check, but you are having trouble getting to a branch, there are other hassle-free ways to solve this problem. Many banks and credit unions offer mobile check deposits, and you can encourage your friend or family member to use this and then transfer the money directly to you once it is processed. The exact location may vary by bank. After following the steps above, you may deliver the check to your recipient, and they should try to deposit or cash the check.
As you begin the process of signing over a check, watch for potential roadblocks. Not all institutions will accept a signed-over check, and those that do may have specific guidelines.
Unfortunately, check-cashing scams have become more prevalent, so it pays to be wary if someone asks you to deposit or cash a third-party check on their behalf. The scammer may ask for the money back in cash or as a personal check, prepaid card, ACH transfer, person-to-person transfer or wire transfer. According to the Federal Deposit Insurance Company, or FDIC, three of the most common scam scenarios are lotteries, online auctions, and secret or mystery shopping opportunities.
If this happens, you should report the incident to the Federal Trade Commission , U. Be wary of any check you receive from a stranger, especially if they ask you to accept a third-party endorsement and return some or all of the funds. Again, every bank will have its own rules, so this documentation may not be enough to get the check deposited. In this situation, you can contact your bank to determine its policy. Rather than making a deposit into your own account, consider opening a custodial account for your child.
Getting a check from a loved one is a great opportunity to teach your kids about money management and how banking works. Once your kids are in grade school and begin learning math, you can start helping them understand simple concepts like saving. Older children may be able to grasp more advanced money concepts, like opportunity costs.
Explain to them that if they spend their money on one thing, they may not have enough to make other purchases.
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