What to Put on a Check and How to Fill It Out
Master the essentials of writing checks. Learn how to accurately complete each part and ensure your payments are secure and valid.
A check functions as a written instruction to a bank, directing it to release a specific sum of money from an account to a designated recipient. While electronic payments are prevalent, checks remain a common method for various transactions, including paying bills, sending money to individuals, or making payments for significant purchases. Properly completing a check ensures your payment is processed accurately and securely.
Key Information and How to Fill It Out
To properly complete a check, several distinct areas require specific information. Each element contributes to the check’s validity and proper processing.
Date: The current date must be written on the designated line in the upper right-hand corner. This indicates when the check was issued and helps in tracking financial transactions.
Payee: Clearly print the full legal name of the individual or entity who will receive the funds on the “Pay to the order of” line. Accuracy here helps ensure the payment reaches the intended recipient.
Numerical Amount: Enter the exact payment amount in digits within the small box provided. For example, “$125.50.” It is important to ensure that cents are included, even if it is a whole dollar amount (e.g., “$500.00”), to prevent ambiguity.
Written Amount: Spell out the payment amount in words on the long line below the payee’s name. For instance, “One hundred twenty-five and 50/100 Dollars.” For amounts with cents, express them as a fraction, such as “and 50/100.” It is advisable to draw a line after the written amount to fill any remaining space and prevent unauthorized additions. This written amount serves as the legal amount if there is a discrepancy with the numerical amount.
Memo Line: An optional memo line, usually found in the bottom left, allows for a brief note regarding the check’s purpose. This aids in personal record-keeping and can be helpful for tax purposes or tracking specific expenses.
Signature: The account holder must sign the check on the signature line, located in the bottom right. This signature authorizes the payment and is necessary for the check to be deposited or cashed.
Pre-printed Numbers: At the bottom of the check are pre-printed numbers. These include the routing number, which identifies the bank, and the account number, which specifies the individual account from which funds will be drawn. These numbers are used for the automated processing of the check.
Ensuring Check Validity and Security
Writing clearly and legibly helps prevent misunderstandings or processing errors. When filling in the numerical and written amount fields, ensure that all available space is utilized or that a line is drawn to fill empty areas; this practice helps prevent unauthorized alterations to the amount. The signature on the check serves as authorization for the payment and should match the signature on file with your bank for proper verification, adding a layer of security.
Should a mistake occur while writing a check, such as an error in the amount, it is generally recommended to void the check entirely by writing “VOID” in large letters across its face. Then, discard the voided check and begin a new one to avoid potential issues.
Maintaining a check register is a valuable practice. This personal logbook allows you to record all check payments, including dates, payees, and amounts, which assists in tracking your account balance and reconciling it with bank statements, providing a comprehensive financial overview.