How to Write a Check

WRITING A CHECK

Maintaining a Checking Account

Endorsement Ownership of a check can be transferred A signature or stamp on the back of a check transferring ownership Three types: – Blank – Special – Restrictive

Blank Endorsement An endorsement consisting only of the endorser’s signature Only blank endorse when in the bank and ready to cash or deposit If check is blank endorsed and lost or stolen, anyone can cash it!

Endorse here X _______________________ _________________________ DO NOT WRITE, STAMP, OR SIGN BELOW THIS LINE Reserved for Financial Institution Use Bob Denitzio

Special Endorsement An endorsement indicating a new owner of a check Include the words “Pay to the order of” and the name of the new check owner

Endorse here X _____________________________ _________________________ DO NOT WRITE, STAMP, OR SIGN BELOW THIS LINE Reserved for Financial Institution Use Pay to the order of Beth Bucher Bob Denitzio

Restrictive Endorsement An endorsement restricting further transfer of a check’s ownership Limits use of check to whatever purpose is stated in endorsement – “For Deposit Only” Prevents unauthorized persons from cashing check if lost or stolen

Endorse here X _______________________ _________________________ DO NOT WRITE, STAMP, OR SIGN BELOW THIS LINE Reserved for Financial Institution Use For deposit only PIANO MAN MUSIC Bob Denitzio

MAKING A DEPOSIT - COMPLETING A DEPOSIT SLIP

KEEPING A CHECK REGISTER

RECONCILING A BANK STATEMENT

OVERDRAFTS AND BOUNCED CHECKS Overdrafts and bounced checks occur when you complete a financial transaction (e.g., write a check) for more than what is available in the account. Your financial institution may pay the amount and charge you a fee, known as an “overdraft fee” or a “nonsufficient funds fee.” Tip: Avoid overdraft or non-sufficient funds fees by making a habit of monitoring the balance in your checking account. 14