Learn step-by-step how to properly endorse a check. Covers everything from basic tips to methods like blank, restrictive, and third-party endorsements. Essential advice to ensure your money lands safely in your bank account.
How to Endorse a Check
Hello. Today we’re diving into a topic that’s important for anyone dealing with checks and money. How to endorse a check.
So, what does it mean to endorse a check? Well, when someone writes a check made out to you, endorsing it is essentially how you give the bank permission to transfer that money into your account. Think of it as your seal of approval.
Here are some important tips. Always use a pen with blue or black ink. No crayons, no red ink, no invisible ink, okay? Banks are old-fashioned; they like things clear and legible.
Also, make sure your endorsement matches the name on the “Pay to the Order of” line. If your name is misspelled or uses a nickname, you’ll likely need to endorse it as it appears and then also endorse it with the correct spelling of your name.
Steps to Endorse a Check
So, Let’s break it down into steps.
First things first, you want to flip that check over to the back. There will be a few lines or a section that says “Endorse Here.” This is where you’ll be doing your endorsing.
Blank Endorsement
Now, the most straightforward way to endorse a check is to simply sign your name on it. But—and this is a big but—once you’ve signed that check, anyone can cash it. If you lose it, well, you’re out of luck. So a basic endorsement is fine if you’re standing in the bank, about to hand it over, but there are other options if you need to hold onto that check for a while.
Restrictive Endorsement
A more secure way to endorse your check is with a restrictive endorsement. Write “For Deposit Only” along with your bank account number and then sign your name underneath. This means the check can only be deposited into that specific account.
Another type of restrictive endorsement is to write only “deposit only” without the bank account number. While this approach is generally less secure, most banks will still honor the instruction and limit the check’s use to depositing it into your account.
Third-Party Endorsement
Let’s say you want to give the check to someone else. You can write Pay to the order of “Name”, with “name” being the person you want to give the check to, and then sign your name below. Just know, this makes the check as good as cash, so only do this with people you absolutely trust.
When you are done, here is a suggestion. Take a snapshot or make a copy of the check—both sides—before you hand it over, for your records. Finally, always—always—check your bank account to make sure the funds have been properly deposited.
Lesson Resource
- How to Endorse a Check Lesson – Teaching lesson plan for this lesson.
