How to Fill Out a Check: A Step-by-Step Process
Gain confidence in managing your finances. This guide provides clear, practical advice for correctly completing checks for any payment.
A check is a written, dated, and signed instruction to a bank, directing it to transfer money from your account to a designated recipient. This financial instrument facilitates transactions without physical currency, providing a secure payment method. While digital payment methods are widespread, checks remain relevant for various financial transactions, including bill payments, gifts, and transfers between individuals or entities.
Identifying Key Sections of a Check
Understanding the distinct sections on a standard check is a foundational step. The top right has a line for the date. Below this, the “Pay to the Order of” line is for the recipient’s name. To the right, a small box is for the numerical payment amount.
Directly underneath, a longer line is for writing out the payment amount in words, which safeguards against alterations. A memo line, in the bottom left, offers an optional space for notes, such as an account number or the payment purpose. The signature line, in the bottom right, is where the check writer authorizes payment. Along the bottom edge, coded numbers include the bank’s routing number, the payer’s account number, and the check number.
Step-by-Step Instructions for Completion
Begin by writing the current date on the date line at the top right. Use a blue or black permanent ink pen to ensure clarity and prevent alterations.
Next, clearly write the full name of the person or entity receiving payment on the “Pay to the Order of” line. Be precise with the payee’s name, as banks will only cash the check for the named individual or business.
Proceed to the small box on the right and enter the payment amount numerically, including dollars and cents. For instance, $125.50 should be written as “125.50”. Write out the dollar amount in words on the line below the payee’s name, starting at the far left to prevent additions. For example, “One hundred twenty-five and 50/100.” Draw a line from the end of the written amount to the end of the line to prevent any unauthorized additions.
The memo line, while optional, can be used to briefly describe the payment’s purpose, such as “Rent” or an invoice number. Finally, sign the check on the signature line in the bottom right corner. The signature authorizes the payment, and a check is not valid without it.
Finalizing and Recording Your Check
After completing a check, ensure all fields are legibly filled and accurate. The signature should match the signature on file with the bank. Signing the check is vital for its validity and security.
Regularly monitoring bank statements helps verify that the check has cleared for the correct amount and to the intended payee. Record the transaction in a check register or an online banking application. This record should include the check number, date, payee, and amount, providing a running balance. Maintaining an up-to-date register helps track expenses, reconcile accounts, and prevent overdrafts.
If a mistake is made while writing a check, void it to prevent misuse. Write “VOID” in large, capital letters across the entire front of the check using a permanent blue or black ink pen. Ensure “VOID” is prominent but does not obscure the routing and account numbers at the bottom, as these may still be needed for certain purposes like setting up direct deposit. Record the voided check in your register with a note explaining why it was voided, and then securely shred it to protect your financial information.