I know what you're thinking... who uses checks anymore? Since you're not required to fill out a check at the store to purchase items or send in a check to pay for rent or monthly mortgage anymore, why are personal checks still important?
So... if you're thinking about using a check or just need a refresher, here's how to write and read a check. I'll also share some best practices used when handling a physical check so you're in the know.
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When someone writes a check, they are essentially creating a legal document that promises to pay the amount of money written on the check from their checking account. The check is then given to the recipient, who can take it to their bank and exchange it for cash. If the recipient does not have a checking account, they can still cash the check by paying a small fee. Checks are a convenient way to pay for goods and services, and they are also a relatively safe form of payment since they can be canceled if they are lost or stolen.
Checks are typically used for one-time payments, such as:
When you write a check, you need to have enough money in your checking account to cover the amount of the check plus any fees that may apply. Once you write and sign a check, it becomes legal tender, which means that the recipient can use it to pay their own debts or expenses.
Some advantages of using checks instead of cash or credit cards include:
Overall, checks can be a convenient and affordable way to make payments, as long as you have the funds available in your checking account.
Using the following images, here's how to properly read and fill out a check.
*This image is for demonstrative purposes only
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Here's what the check should look like when it's completed.
*This image is for demonstrative purposes only
You'll notice the text "Endorse Here" on the back of a check. As the receiver of a check, you need to sign your name in order for the check to be cashable.
*This image is for demonstrative purposes only
Grab your checkbook register and notate the transaction you just made!
A checkbook is a critical tool for managing personal finances. By keeping track of all deposits and withdrawals, it helps to ensure that spending stays within budget. This is especially important in today's age of online banking, where it can be easy to forget about small transactions.
With a balanced checkbook, individuals can get a clear picture of their financial situation and make informed decisions about spending. In addition, a checkbook can help to quickly identify any errors made by banks or businesses. Ultimately, a balanced checkbook is an essential part of responsible financial management.
Here's an example of a check register, using the information from the check written out to Whole Food Market to complete the check register.
*This image is for demonstrative purposes only
Make sure you insert the check number, date, description of the transaction made, and the payment or deposit amount along with the balance onto the check register. You're going to copy this info so you can reference back to it later.
In the event you've made other previous transactions, your check register should list your other transactions in case the transaction has not been posted to your account yet.
Want your own check register, we have a free check register template just for you.
Unlike depositing a check at the teller line, you’ll still have the check on hand if you use Mobile Banking. A good rule of thumb is to keep the check for 7 – 10 days after depositing to ensure the funds went into your account. Make sure you store the check in a safe space since it has important financial information about the check writer.
By following these simple steps, you can help prevent fraud and safeguard your finances.
Have you ever heard of balancing your checkbook? This is absolutely the same thing, we're just referring to it as your checking account!
Balancing your checking account gives you the ability to quickly catch anything wrong with your money. You would know the date, the amount, and probably the merchant that took the amount if fraud were to occur. What do you have to lose? You'll know how to manage your checking account responsibly.
If you need further assistance, our Customer Service Representatives are here for you here and ready to assist! You can get in touch with us here, call us at 704.375.0183, or visit any of our branches.