How to Write a Large Check Amount Accurately
Learn to accurately and securely write large check amounts, minimizing errors in significant financial transactions.
Accurately writing checks, especially for significant sums, is a fundamental financial skill. Errors can lead to delays in payments, additional fees, or even legal complications. Understanding the proper procedure for filling out a check helps ensure that transactions are processed smoothly. This attention to detail is particularly important when dealing with large amounts, where the potential consequences of a mistake are amplified.
Essential Check Components
A check functions as a written instruction to a bank to transfer a specific amount of money from one account to another. Several key components must be completed accurately for any check to be valid. The date line, typically found in the top right corner, indicates when the check was written and when the transaction is intended to occur.
Below the date, the “Pay to the order of” line designates the recipient of the funds. It is important to write the full and correct legal name of the person or entity being paid to avoid processing issues. The numerical amount box, usually located to the right of the payee line, requires the amount to be written in figures. This figure should be clear and precise, including both dollars and cents.
The written amount line, positioned below the payee line, is where the dollar amount is spelled out in words. This written amount serves as the legal tender and takes precedence if there is a discrepancy with the numerical amount. The signature line at the bottom right authorizes the payment, confirming the check originated from the account holder. An optional memo line can be used to note the purpose of the payment, which is helpful for record-keeping.
Accurately Stating the Large Amount
When writing a large check, precise formatting of the monetary value is important to prevent alteration and ensure proper processing. The numerical amount in the dollar box should be written clearly, filling the space to prevent additional digits from being added. For amounts involving thousands, such as $1,500.00, it should appear as “1,500.00” in the box. Similarly, for millions, such as $1,500,000.00, it would be “1,500,000.00”.
On the written amount line, the full dollar amount must be spelled out in words. For example, $1,500.00 should be written as “One thousand five hundred and 00/100.” For a larger sum like $1,500,000.00, it would be “One million five hundred thousand and 00/100.” The word “and” should always separate the dollar amount from the cents, with the cents expressed as a fraction over 100, such as “75/100” or “00/100” even for whole dollar amounts.
Start writing the words as far to the left of the line as possible to prevent anyone from adding words before the intended amount. After writing the full amount in words and the cents fraction, a line should be drawn to fill any remaining empty space on the line, extending to the pre-printed “Dollars” or end of the line. This practice further deters fraudulent alterations. If any mistake is made while writing the amount, it is advisable to void the check and start over rather than attempting to correct it.
Security and Verification for Large Checks
After accurately completing a large check, several practical steps enhance its security and facilitate smooth processing. Always use indelible blue or black ink to prevent alterations. Avoid leaving any blank spaces on the check, particularly in the amount fields, as these can be exploited for fraudulent additions.
For significant transactions, it is advisable to inform your bank about the outgoing large check, especially if it is substantially larger than your typical transactions. This proactive notification can prevent the bank’s fraud detection systems from flagging the transaction as suspicious, which might otherwise lead to delays or a temporary hold on funds. Banks often have policies for large deposits or withdrawals, and communication can streamline the process.
When depositing a large check, be aware that banks may place a hold on the funds. Federal regulations allow banks to hold funds from larger checks, exceeding $5,525, for up to seven business days to verify authenticity and ensure funds are available from the issuing bank. While the initial $225 to $5,525 may be available sooner, the remainder can be subject to these extended holds. Verifying the check’s legitimacy, often by contacting the issuing bank directly, is a prudent measure, though it does not guarantee the check’s authenticity.