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But what’s not a great feeling is logging into your bank account a day or two after your deposit to discover that your check funds haven’t yet been made available to you. Many banks strive to clear checks by the following business day.

While a check hold can certainly be a frustration, there’s also no need to panic. Below, we’ll cover the most common reasons your bank may be holding your check, how long it could last, and what you can do to avoid check holds in the future.

In addition to protecting your bank, a hold can protect you from spending funds from a check that is later returned unpaid. That’s important because it could help you avoid accidental overdrafts and related fees.

According to these guidelines, most checks should be processed within two business days.

A few of the most common situations that could lead banks to place a longer hold on a check are: Finally, banks can place longer holds on any checks they have “reasonable cause” to believe will be uncollectible.

Well-grounded facts must exist that cast doubt on a check’s collectability. In most cases, yes.

The remainder of the check should be released by the second business day. Many banks will voluntarily choose to exceed these minimum requirements for their established customers.

Some banks and credit unions even offer same-day availability up to certain dollar amounts. Unfortunately, the rules listed above do not apply to “exception” holds.

After depositing any check, make sure to keep your deposit receipt. It will show when the check funds should be made available.

During a check hold, keep a close eye on your spending. For example, if you had $1,000 in your bank account before depositing a $1,000 check, it would normally be reasonable to assume that you have $2,000 available to spend.

Can’t wait two business days to access your check funds. If so, you may want to look at other deposit options.

Also, there are a few special types of checks that normally clear on the next business day. Eligible checks include cashier’s checks, certified checks, teller’s checks, and government checks.

If you need to cash a cashier’s check, you can do so at the issuing bank or financial institution, but there may be fees associated if you’re not a customer. Fortunately, there are other ways to cash a cashier’s check — even if you don’t have a bank account.

How does that work.

Then the bank issues a check drawn from its funds to the person you want to pay. Because the bank’s funds are secure, the money may be available to the payee faster, especially on large deposits that may normally take several business days to clear if they’re made via personal check.

Payments over $1,000 come with a fee, generally ranging from $5 to $15.

You’ll also need to provide your bank with the payee’s name, and you’ll have to have a driver’s license or other valid form of identification. You can get a cashier’s check at your local bank branch: just ask your bank teller.

A cashier’s check and a personal check are two different types of checks. A personal check is drawn from your bank account, whereas a cashier’s check is drawn from the bank’s account.

There’s always a risk you won’t have enough funds in your account to cover a check you’ve written, but there’s no such risk with a cashier’s check. That’s because the bank determines whether you have enough funds to cover a cashier’s check before it issues one, so availability of funds isn’t a factor.

Some banks may require a special deposit slip for next-day availability. Also, banks may place a hold on cashier’s checks if the total deposited in a single day is more than $5,525 or if they have reason to suspect it’s not collectible from the issuing bank.

A certified check, like a regular check, is a form of payment drawn from the bank customer’s account. However, with a certified check, the bank checks to confirm there’s enough money in that account to cover the amount of the check.

This assures the payee that the check won’t bounce. Some people or companies may ask for a certified check as payment, particularly on large payments, such as a down payment on a house.

A money order is used, like a cashier’s check, to guarantee the funds you’re paying are available. Money orders are generally used for smaller purchases, and they’re a helpful option for people who don’t have bank accounts.

That’s right: You don’t have to go to a bank to get a money order, and that convenience can be a big advantage. You can purchase a money order worth up to $500 at any post office for $1.45, or you can pay 50 cents more for any amount up to the maximum of $1,000.

The post office will take payment in the form of cash, a debit card, or a traveler’s check, but won’t take a credit card. You just pay the amount of the money order plus the fee, then keep the receipt for tracking purposes.

You can cash a cashier’s check at banks and credit unions. If you’re not a customer of the financial institution, you’ll likely have to pay a fee.

For example, U.S. Bank requires you to provide your Social Security number to cash any check of more than $500.

You can also cash a cashier’s check at many check cashing stores such as Ace Cash Express, Check ’n Go, Check Into Cash, Pay-O-Matic, PLS Check Cashing, Money Mart, and Moneytree. Check-cashing stores make money by charging a fee to cash your checks, and the fees can be significant because they’re sometimes charged as a percentage of the check’s face value.

The fees vary from store to store, and with some, you have to pay a minimum fee or a nominal sign-up fee for first-time use. For example, PLS cashes checks for “as low as 1% + $1.” And fees at Advance Financial range from 1% to 5% with a $5 minimum fee.

Walmart and other big box stores can cash a cashier’s check for you, too. So can major grocers like Kroger and H-E-B.

Walmart charges a $4 fee for checks up to $1,000 and $8 that for checks above $1,000, while Texas-based H-E-B has a $3 fee for checks as high as $3,000 and varying fees for higher figures.

For larger amounts, the fee is $7 with a card and $7.50 if you don’t have one.

You can sign up for a membership (for a $25 fee), and you can cash checks up to $999. There’s a service fee, but it’s waived with a qualified purchase such as 60 gallons of diesel fuel, a convenience store purchase of $50, or truck maintenance/repair services of $250 or more.

Some banks offer the ability to cash a cashier’s check online with mobile apps and other methods of mobile deposit. You typically need to endorse the check, just as you would a regular check, then follow the app’s instructions.

After that, you will need to take a picture of both sides of the check — the front, with the routing and account numbers clearly legible, and the back, with your signature. Make sure the pictures are in focus.

You can also deposit cashier’s checks via online services like PayPal and have the money sent to your bank account or a special debit card. In order to cash a cashier’s check, you’ll be asked to provide a government-issued photo ID.

Some companies will require two forms of identification. Most institutions will provide cashier’s checks to customers, but some smaller banks and credit unions also offer the service to non-customers for a fee.

If you need to cash a cashier’s check but don’t have an account, you may be able to find a bank or credit union that will provide checks for non-customers. Be prepared to pay a fee in such instances.

Cashier’s checks are more secure than personal checks because they’re backed by a financial institution, but that doesn’t mean they’re immune to fraud. To ensure a check you’ve received is legitimate, contact the issuing bank using the contact information on its website.

And most check scams involve fake checks. You may be tempted to breathe a sigh of relief when you see the check has cleared, but that doesn’t mean it’s not fake.

law, banks have to make deposited funds available within days, but fake checks can be discovered after that time. When they are, you have to repay the bank, and if you’ve paid any money to a scammer in the meantime, you’re out that amount.

Sending and receiving money via recognized, trusted apps such as PayPal or Google Pay, or through your own bank’s website, is a good way to avoid scams. Since most scams involve fake checks, verify that the checks have been issued by the institution whose name is on the front.

Good rules of thumb: Victims of fake check scams can report them to their state attorney general, the Federal Trade Commission, or the U.S.

Cashier’s checks can be useful tools to send and receive large sums of money quickly and securely. They aren’t the only option, though, and you need to be on the lookout for possible scams.

Credit cards are secure against fraud, and you can use them to build credit as you pay off debt. (If you’re just establishing your credit or looking to bolster your credit score, consider a secured credit card.).

Understanding the pros and cons of the various choices could help you save money and is a good first step to improving your personal finances. Jeff Smith is the VP of Marketing at Self Financial.

Ana Gonzalez Ribeiro, MBA, AFC® is an Accredited Financial Counselor® and a Bilingual Personal Finance Writer and Educator dedicated to helping populations that need financial literacy and counseling. Her informative articles have been published in various news outlets and websites including Huffington Post, Fidelity, Fox Business News, MSN and.

We may be moving toward a cashless society, but we’re not there yet. Despite the growth of electronic payments, debit cards, and credit cards, checks are still widely used in the United States.

While writing a check is quite simple, cashing one can be a chore. If you’re heading into a bank or credit union with your check, it’s important to be prepared.

A bank is not obligated by law to cash a check for you if neither you nor the writer of the check has an account with that bank.

Banks have to protect themselves against check fraud. Without proper proof of identity, a bank can legally refuse to cash a check made out to your name.

Always carry proper government-issued identification such as a driver’s license or passport when you intend to cash a check. The bank may demand that these proofs be “valid,” or current, even though your picture is right on it.

In some states, banks are allowed to swipe the magnetic stripe of the driver’s license or identification card issued by the Department of Motor Vehicles as a requirement to cash a check, as long as they stay within the legal limitations of what they can do with that information.

For example, John Smith, owner of John Smith Landscaping Services LLC, wants to cash a payment from a customer.

John just finished a large job and receives a check made to John Smith Landscaping Services LLC. He tries to cash that check at a nearby bank, but the bank teller refuses to complete the transaction unless John can provide proof of valid business registration with the state.

Business owners need to take two steps to prevent the problem:. Both these steps are needed for other purposes, notably for tax filing, but they’ll also save aggravation at the bank.

If you don’t have an account at that bank, you may be charged a check-cashing fee, especially if you go to the payor’s bank. Not all bank branches can handle a large cash transaction without advance notice.

For example, a bank may routinely keep $50,000 available per day for customer transactions. It will not be willing to hand most or all of it to a single customer and tell the next customer that the bank is out of cash.

When you have a check for a very large amount of money, call ahead to the manager of the bank branch you intend to visit. The bank manager will advise you whether you should go in by appointment, go to the main branch, or even go to another bank that can handle the transaction.

Some checks carry notices indicating that they will become void after a certain period of time. Once that date has passed, these checks are referred to as stale dated.

Some checks can become stale-dated as early as 60 days, while others may be 90 to 180 days. While the Federal Reserve considers those notices to be guidelines, some banks are very conservative and won’t budge.

If you wait too long to cash a check, a bank can refuse to cash it. Legally, a bank can refuse to cash any check that is older than six months.

Another reason a bank may not be able to cash a check that is too old is that the routing number of the institution issuing the check may have changed as a result of a merger or acquisition.

When someone gives advance written notice to your bank to not cash a post-dated check, the request is valid for six months under state law. Oral notice is valid for only 14 days.

Some reasons why a bank won’t cash a check include not having a proper ID, not having an account with that bank, the check is filled out incorrectly, or the check being too old. Ensure you comply with all the required criteria before attempting to deposit a check.

The fees will depend on whether you were the issuer of the check or the recipient. The primary fee is an NSF fee.

The average NSF fee is $34. Yes, banks always verify checks before cashing.

Investopedia / Tara Anand. Though the advent of online banking has made the use of checks less common, knowing how to successfully deposit a check and being aware of what issues may arise is important financial knowledge.

Your parents wrote a check to your child for his birthday. A neighbor wrote a check in your husband’s name.

Whatever the case may be, there are some scenarios where you may need to cash a check written to someone else. Can you deposit someone else’s check in your checking account.

Banks and credit unions are highly regulated, and there are rigorous rules that they have to follow concerning deposits, withdrawals, and verifying customers’ identities. According to the Uniform Commercial Code (UCC) — a set of laws that regulate banking transactions — for a bank to cash a check, it must be properly payable, meaning the customer authorized the payment and the payment doesn’t violate the bank agreement.

If you sign the check as that individual and deposit it into your account, you could be charged with check forgery. Usually, when cashing a check, two parties are involved: the payer who writes the check and the payee who deposits or cashes it.

Although you can legally deposit a third-party check under certain circumstances, not all banks will accept them, as banks can set their own policies regarding third-party checks. There are a few scenarios where you may want to deposit a check written out to someone else:

You can improve the odds of your bank accepting the check by having your friend come with you to the bank to provide the teller with identification and consent. Your friend will have to endorse the back of the check and write “pay to the order of” and your name on the endorsement area.

If the check is written out to just one person, either person can cash or deposit the check into the account. If your child is a minor and receives a check, you can cash it on their behalf.

In the endorsement area, print the child’s name and add a hyphen and the word “minor.” Under that line, print your own name, add a hyphen, and describe your relationship to the child. For example, “parent,” “guardian,” or “father.” Sign your name under that line.

Whether you’re helping an elderly parent or a relative who is in the military and serving overseas, you may have power of attorney (POA) to handle their financial affairs. As the POA, you can manage matters on their behalf, including depositing or cashing checks.

But can you deposit someone else’s check in your account online. Generally, you can as long as you are listed as an agent on the account.

Under it, print your own name and your role as agent or POA, then add your signature. When you need to cash or deposit the check, you may need to bring a copy of the POA form if you aren’t a listed agent with that particular bank.

However, if an executor was not named, the check cannot be cashed or deposited. it must be returned to the certifying agency and you must wait until the probate process is complete.

In the endorsement area, sign the name of the business, sign your name, and write your title. For example, you might write “Owner” or “CEO.”.

If you deposit a check with someone else listed as the payee without proper endorsement, the bank could flag the check as fraudulent. Check fraud or forgeries are serious issues — depending on the check amount, those offenses can be misdemeanors or felonies — and cashing someone else’s check without their permission can have significant legal consequences.

Depending on the circumstances, you could face the following issues: Delayed funds: With third-party checks, the bank could take more time to verify the check and put a hold on the funds.

Overdraft fees: Banks have to make deposits available quickly. A check may be cleared, but if it turns out later to be a bad check, you’re responsible for the funds.

Damaged relationships: Before cashing a check, be sure you have your friend’s or relative’s express permission. Ideally, they’d accompany you to the bank or provide a written statement.

A common scam involves a scammer signing over a check to you to deposit, usually for more than they owe you. For example, a remote job listing may promise upfront payment and send you a check for more than the promised amount.

The check turns out to be bad so you have to repay that money, and the scammer makes off with the gift cards. If you’re a victim of a fake check scam, contact the Federal Trade Commission and your state’s attorney general.

Yes, but it can be more complicated than depositing a check written out to you. Some banks prohibit it, and there are some risks involved.

Be patient: Have the payee cash the check in their name. Once it clears, they can transfer the funds to you or write you a check in your name.

Get added to the account: Many banks will allow you to add a trusted individual to an account and get check deposit or cashing privileges. Open a joint account: If you frequently have to cash a check on behalf of a child, open a kid’s checking account.

Explore other payment options: Consider peer-to-peer payment services like Venmo or Zelle rather than signing over checks. They’re quick and easy to use, and don’t require you to jump through hoops like you have with third-party checks.

Check-cashing services allow people without bank accounts to cash checks. A fee is charged, sometimes just $1, sometimes more than $100, so that people who need cash, get it.

Unbanked means an individual does not have a bank account in any form. Underbanked means an individual has an account of some kind, but still uses alternative services, such as a check cashing service.

population does not have a bank account at all. The percentage may seem low, but 6% of the U.S.

Why would a person be unbanked. They may not be able to open a bank account due to unpaid past fees or a history of overdrafts, or simply might not want an account.

The underbanked might want to use the service to more easily cash their checks, or to fill a fast need to get cash. It probably isn’t surprising that most unbanked and underbanked are low income.

A check cashing service can be helpful, especially to the 15 million people who are unbanked. However, anyone considering the service should know the fees that are charged.

A check cashing service is what it says – it allows a person who does not use a bank to cash their checks. It’s important to remember that these services are not banks.

They also can be major retailers like Walmart, Kmart, Publix, Kroger, and Food Lion. They are prevalent and provide help to those who need a way to cash a paycheck or other check – such as an IRS refund or Social Security check.

They serve more than 30 million customers annually, and cash more than $58 billion in checks. In total, they provide an estimated $106 billion in financial services each year.

Merely take your check and identification card to a check cashing location, sign the back of the check and you can turn the check into cash. You will take home the value of the check, minus the fee.

One of the main differences between using a bank and a check cashing service is that a person can put the cash in their pocket immediately. Some banks have a three-day hold on checks that are deposited into accounts.

If there is an immediate need for the funds, the check cashing service will turn the check into cash, which you can carry out of the office. Who might need this kind of service.

Everything in life has give and take. So it is with check cashing services.

While there are fees, the ability to gain faster access to your money can be important. There are positives and negatives to this approach.

Some of the positives of a check cashing service include: Chief among the negatives are the fees that check cashing services charge, fees which continue a difficult cycle for low-income users who are seeing some of the little money they earn, go to a service just to cash a check.

Though there are positives to check cashing stores, the negatives are real and could be significant. The underbanked who do not take advantage of what a bank offers are costing themselves unnecessary fees and turning away from the benefits of the local bank.

Using a check cashing service once or twice when the need arises may not be a major issue, but the more the service is used, and the more the dependency on the quick fix grows, the more fees are paid and the less beneficial the service. The average fee for check cashing services varies by state, but typically it can be between 1% and 12% of the value of a check.

Giving away $120 for convenience is not financially sound in the long term. The Consumer Federation of America reports the average nationwide percentage to cash a check at a service is 4.1% and it varies by state.

In New York it might cost $16. Elsewhere it might cost $120.

Though check cashing services can provide a solution to those in need, there are alternatives that would help avoid costly and excessive fees. Those who use the service typically are lower-income, which means they could be spending 5%-to-10% of their paycheck in fees.

What other options might be available.

On a one-time basis when the need is high, using the service can be beneficial. But the high fees add up and lead to a debt spiral that is hard to break.

Those who do face that kind of debt problem would do well to talk to a nonprofit credit counselor, who could assess your budget, income and expenses and offer advice on how to avoid debt. Credit counseling could include a budget review and debt analysis, and lead to remedies that include a debt management program.

Technology has changed the way the world banks, but some traditional banking methods and instruments remain. Writing a check, for example, is still a viable payment method.

Here’s a quick guide on writing, endorsing, depositing and ordering checks. Before you start writing and using paper checks, you need to be able to identify the sections of a check.

Writing a check isn’t tricky, but there are things to keep in mind to ensure the check will be valid. Here’s how to correctly fill out a check.

Even with the rise in mobile and online banking—and peer-to-peer (P2P) payment apps like Venmo and Paypal—it’s important to know how to balance your checkbook to stay on top of your financial transactions. Let’s say you need to send a payment to your electric company.

For this example, suppose that your electric company, ABC Electric, requires you to mail checks as payment for services rendered. The statement shows an amount due of $113.97.

You’d fill out the: Once you’ve filled out your check, you’d mail it and other required documents to the address provided by ABC Electric.

Follow the tips below to ensure your checks are accounted for and end up where they need to go. Keep a record of checks you write—use a check register, a spreadsheet or another tracking method.

Keeping detailed records of your written checks can help you avoid bouncing a check. Bank reconciliation, or balancing your checkbook, can help you track checks and other transactions each month.

Without proper safety precautions, your checks may be susceptible to fraud. Take these safety measures when writing checks:

Yes, writing a check to yourself is perfectly legal. You may be wondering why you would do this.

To do this, you write your name on the payee line. While there are more efficient ways to withdraw money from the bank, writing a check to yourself is an option.

A check endorsement is for security purposes to verify you are the intended recipient of the check. To endorse a check is to sign the back of it.

The name signed on the back of the check must match the payee’s name listed on the front of the check. If your name is misspelled on the check, sign it with the incorrect spelling and then sign it again with the correct spelling.

Check endorsements protect people from check fraud. A mobile check deposit without an endorsement is likely to be rejected, even if initially accepted from your phone.

The most common method of check endorsement is a blank endorsement, which is signing your name on the back of the check. No instructions are added to the check, so you’ll have to tell the bank teller whether you want the check cashed or deposited.

However, it is the least secure. Once that check is signed, anyone in possession of it could attempt to cash it.

For an added level of security, wait until right before you are ready to deposit the check to add your signature. You may receive a check and then want to hand it over to someone else for payment.

Instead, you can endorse the check by writing “Pay to the order of [Person’s Name]” and then signing the check as you would normally. Not all banks accept third-party endorsements.

Some banks require extra work with mobile check deposits, which means adding “For Mobile Deposit To [Bank Name]” or something else to your endorsement. Your bank’s app may provide these instructions, or you can contact your bank prior to preparing your deposit.

Typically the endorsement would need to include: There are times when a check is made out to multiple people, such as a parent and child or a couple as a wedding gift.

For example, If the check is written out to “Jane and John Doe,” both parties must endorse the check. However, if the check is made out to “Jane or John Doe,” then either party can endorse the check.

In-person deposit. Visit your local bank branch, endorse your check and present it to a bank teller.

Be sure to have a valid form of I.D. with you, such as a driver’s license.

Many bank and credit union ATMs allow customers to deposit checks. Make sure you endorse the check before depositing it.

Mobile check deposit. With the rise of mobile banking apps, mobile deposits have become a popular way for people to add funds to bank accounts.

Hold onto the check until you know it has cleared and the funds are deposited into your bank account. It’s a good idea to destroy the check once credited to your account.

Some banks provide complimentary checks when you open a checking account. If not, you’ll have to pay for checks.

Other options include ordering checks at your local bank branch or calling the bank’s customer service number. Third-party check providers also are an option, either through a partnership with your bank or by ordering directly.

Have an existing check handy because it features all of the information you need to order checks, including your: The cost of checks varies depending on where you order them and whether you go with a basic personal check or a more personalized check design.

To do this, log into your bank account via the financial institution’s website or mobile app. Typically, you can find instructions for ordering checks under the customer service or account services section.

There are third-party businesses that sell checks online. To order checks from somewhere other than your financial institution, you’ll need to provide the name of your bank or credit union, bank account number, routing number and the starting check number.

Effectively managing your checking account means acquiring basic skills, including writing and endorsing a check. Knowing how to write a check, endorse it for deposit and order more checks can help you maximize the value of your checking account and your banking relationship.

A post-dated check is a check with a future date listed on it. Sometimes this is done if someone is sending payment before the due date or doesn’t have sufficient funds in their account when the check is written.

You must include your name and address, daytime phone number, Social Security number or EIN, the tax year and the related tax form or notice number. Refer to the tax form or contact your tax professional or the IRS for the correct address to send the check.

Treasury, not the IRS. Some banks and credit unions allow you to deposit checks at an ATM.

Check with your bank or credit union to see if they allow ATM check deposits and specific instructions on how to deposit a check.

If you’ve never really received a check you might not know how to endorse a check or even what a check endorsement is. The first thing we should get out of the way is that check endorsements are for people receiving a check, not sending a check.

When you get paid via a check, it’s like you’ve received a voucher for the amount outlined on the front of the check.

As the check receiver, you then need to sign, or endorse, the back of the check to finalize the check transaction and receive your promised money.

Endorsing a check is incredibly easy. All you have to do is flip the check over to the back, find the words “ENDORSE CHECK HERE” and sign your signature where indicated.

If you only sign your name that’s called a blank endorsement. A blank endorsement is when you only provide your signature and no other instructions about what you want to do with the check.

To be extra secure with your check transaction, you can also write the words “for deposit only.” This is a restrictive endorsement that makes sure this check can only be used to deposit into your account and not for any other purpose should it get lost or stolen.

That way there is no doubt for how the bank teller is meant to process the check.

All of these endorsement restrictions go in the same “ENDORSE CHECK HERE” box on the back of the check. As the check receiver, you shouldn’t write anywhere else on the check.

When you are writing a check for someone you have to sign your name on the signature line on the front of the check, in order for the check to be useable. If that signature is missing, then the check receiver won’t be able to cash or deposit that check.

Check endorsements work in much the same way. The receiver of the check must validate they are in fact the check receiver by signing their own signature on the back of the check and providing the bank teller or cashier with their ID.

Check endorsements also give the bank permission to finish processing the check transaction and get your funds to you. It gives the bank permission to deal with the check sender’s account and your account in order to transfer funds from the sender’s account to the receiver’s account.

Because endorsing a check is how you authorize the finalization of the check transaction between you and the check sender, you should wait to endorse the check at the bank teller’s counter. This will help keep thieves from being able to cash the check because the proper person (you) hasn’t endorsed it yet.

If you are endorsing a check for an electronic deposit then the check will remain in your possession even after you’ve endorsed it. To keep the check secure, keep others from trying to cash it again, and remind you that you’ve already taken care of that check, write the word “VOID” in all caps across the front of the check as soon as the electronic deposit goes through.

The endorsement area of a check is found on the back of the check. If you flip your check over you’ll find a section with the words “ENDORSE CHECK HERE” and a box or some lines for you to write your signature.

You should keep your signature and any other endorsement instructions you might have in that small endorsement area only. This is because the bank will need the rest of the space on the back of the check for their own records and purposes to finish processing the check correctly.

The person receiving the check is the one that needs to endorse the check. For instance, if the front of the check on the “Pay to the Order of” line says, “Jane Doe” then Jane Doe is the one who should be endorsing the check.

In general, whoever’s name is written on the “Pay to the Order of” line is the one who needs to endorse the check.

The first thing you should know is to wait until you are actually at the bank before you endorse the check. That way you’ll be better at protecting yourself against check fraud.

Next, flip the check over on its back and you’ll find the section shown in the image below. This is where you’ll be endorsing your check.

Step One: Flip the check over to the back of the check. On the back of the check, you’ll find the words “ENDORSE CHECK HERE” with some lines beneath them.

Step Three: On the last line below “ENDORSE CHECK HERE” you’ll find the words “DO NOT WRITE, STAMP OR SIGN BELOW THIS LINE ***RESERVED FOR FINANCIAL INSTITUTION USE***” These instructions mean you should not write, sign, or stamp anything at all below that line. The check cashing place you use will need this space for their own purposes, so it should be left blank.

Endorse check for deposit only is a type of restrictive endorsement. Restrictive endorsements are useful because they ensure the check will be used exactly how you want it to be used.

When writing a restrictive endorsement it is important you be as clear as possible in your instructions. You also need to keep your endorsement instructions and endorsement signature in the designated endorsement area and nowhere else.

Step One: Flip the check over to the back of the check.

Step Three: Below where you wrote “For Deposit Only” sign your signature to complete the endorsement.

Just write the words “For Deposit Only to Account #####” with your account number written out.

That means you don’t have to take a trip to your bank just to take care of a check. Now all you have to do is have your bank’s mobile app and you can deposit checks to your account from the comfort of your own home.

Step One: When cashing a check on your phone, write the words “Mobile Deposit” along with your signature in the endorsement area on the back of the check.

Step Three: Open the menu and select the check deposit option.

*Extra Step: It might take a few minutes or even a few business days for the check funds to deposit into your account. Once the check funds drop into your account, write the word “VOID” in all caps across the front of the check.

This will ensure that no one can try and deposit the check again. It also serves as a reminder to you that this check has already been taken care of.

If the check is written out to a business instead of a person, then someone who is authorized by that business needs to endorse the business check. The bank that holds your business’s bank account will know who is and isn’t authorized to endorse checks to your business.

Step One: Flip the check over onto the back of the check.

Keep all of this information in the designated endorsement space.

Ideally, when writing a check to a minor, you should write the name of the parent who will be depositing or cashing the check on the “Pay to the Order of” line, and then write the child’s name with the letters FBO on the memo line. FBO means “For the Benefit of.” Writing a check this way makes it easy for the parent to take care of the check for the child without any problems.

But not all checks for minors get written out this way. In that case, here is what you’ll want to do.

Step One: Flip the check over to the back.

Step Three: Then, write your name with a hyphen that indicates your relationship with the child, like mother, father, parent, or guardian.

FBO checks, or “For the Benefit of” checks, are checks written to be payable to person A for the benefit of person B. This allows checks to be cashed or deposited by a specific party even though they are meant for another.

For example, Jane Doe has a son named William Doe. William has a birthday and his grandma, Anne Doe, writes him a check.

Yes, it’s possible to deposit cash at some ATMs, depending on your bank. Most large banks and credit unions in the U.S.

You can use your bank’s ATM locator to identify them. If you find that you’re nowhere near an in-network ATM that accepts cash, you’re not totally out of luck.

First, you need to find the right ATM. Use the ATM locator offered by your banking institution.

If your bank doesn’t offer an ATM finder, look at your ATM card or debit card itself to see the ATM brands listed on it. You usually need an in-network ATM that is branded by your bank rather than one managed by a third-party partner like Allpoint or MoneyPass.

If you have any questions, check with your bank before you make a trip. Here are links to ATM locators for some of the largest American banking institutions.

Check your account to make sure the funds show up in your account when they’re supposed to. With in-network ATMs, deposits are usually available immediately, within the same day or on the next business day.

If the money isn’t there or it’s an incorrect amount, call the ATM company for guidance.

You can check your financial institution’s website or app ahead of time. “Most networks do not have deposit limits, but an individual ATM may have a limit on how many individual bills it can process at a time,” said Cyrus Purnell, a certified financial planner and coach at Financial Finesse in Memphis.

For example, Chase and Wells Fargo have a limit of 30 bills or checks. Its ATMs process only 30 individual paper deposits at a time, regardless of denomination.

The institutions that do have ATM deposit limits tend to set them high. Credit union Co-op AMTs have a daily deposit limit of $10,000.

If you find an ATM that allows out-of-network deposits keep in mind that your bank may charge you a fee on top of the ATM operator’s fee. The processing time may take longer too, according to Purnell.

If it’ll be a while before you’re back in the ATM network and there are no branches near you, check out the three options in the next section.

For instance, Ally and SoFi partner with Allpoint. But your ATM transactions may be limited.

If your online bank doesn’t allow cash deposits, you still have options: Yes, some third-party ATMs allow you to deposit cash.

An ATM deposit hold is when you don’t have access to the money just yet, even though you deposited the cash. Financial institutions typically make in-network, ATM cash deposits available within the first business day after you make it.

If you’re depositing cash at an out-of-network ATM, on the other hand, you’ll likely pay a fee to the ATM operator and to your own bank. Because you’re handling cash that can be stolen, always be aware of your surroundings.

For best safety practices, Bank of America suggests:.

When you receive a check, you may want to deposit it into your checking account and spend your money quickly. However, a financial institution may place a hold on a deposited check.

The amount of time it takes for a financial institution to clear a deposited check depends on their hold policies and your deposit method. However, the average time for a bank to process a check is two business days.1.

The bankrolls any deposits made after that specific time into the next business day. Suppose you deposit $400 on Monday after the cutoff time of 3:00 p.m.

The cutoff time for deposits varies, but there are federal laws that financial institutions must follow. For example, the cutoff time for a physical branch location cannot be earlier than 2:00 p.m.

Suppose you deposit a check worth less than $200 in person. In that case, you can generally expect to see the money in your available balance within one business day.

It’s possible to get your money by the next business day if you deposit certain types of checks in person. A bank employee can quickly process a certified check, a government check, or a check from one personal account to another.

Suppose you have cash and want to deposit that money into your checking account. In that case, you may think the money will be available immediately.

If you deposit cash at an ATM, you will likely have to wait at least one full business day before cash deposits can be withdrawn or used. Electronic transfers have already been cleared, such as a mobile deposit or direct deposit into a checking account.

Electronic deposits with checks and loans—such as payday loans, personal loan options, and fixed rate loans—can be withdrawn by the second business day. Direct Deposit continues to be the overwhelming choice for Americans to receive their wages.2.

You can safely deposit cashier’s checks, certified checks, and teller checks at any ATM. If you make a deposit at your bank’s ATM, you can expect money from your deposited checks by the second business day.

You may have to wait five business days before your deposit clears.

Why is there a waiting period at all. Banks have the authority to place a temporary hold on checks due to Federal Reserve regulations.

A deposit hold ensures that the check payer has the money available. A deposit hold on checks also prevents people from spending before funds clear.

A bank may issue a fine, and you would have to reimburse the money you spent. If there is insufficient money in your bank account to cover the amount you spent, you may face an overdraft fee.

These are a few common reasons why a bank decides to withhold funds for an extended period:. Financial institutions consider accounts new if they have only been active for less than 30 days.

A deposit hold can be put on sizeable checks until it clears. If your check deposit is more than $5,000, you can expect to wait two business days to receive up to $5,000.

If the deposit amount is more than your available balance, you will also have to wait a few days to spend your earnings.

If a person frequently overdrafts their bank account, the bank is more likely to place a hold on a deposited check. This ensures the money clears and that you don’t spend more cash than you have available.

If you attempted to deposit a check, but it was returned unpaid, you may try to deposit a new check provided by the same person again. If a check was returned unpaid at least once, the bank would place a hold on the money to ensure the payment clears.

Individuals who undergo emergencies, such as natural disasters or power outages, may receive financial assistance. Suppose you received a check under emergency conditions from the government.

Emergency deposits made at an ATM can take two business days to clear.

There are ways to stop a levy on a bank account. If you currently have a hold on your check from a bank or credit union, you may be wondering why exactly the process can take some time.

There are several steps you can take to avoid a check hold that a bank may place in the future. here are some tips:

A cashier’s check is similar to a paper check, but the money comes from the bank’s funds. A bank guarantees the money, but you may still have to wait two business days.

This guarantees payment, so you may only have to wait one business day. When you make a deposit at a bank or ATM, make sure you receive a deposit receipt.

Contact your bank if you check your account balance on the receipt date and discover the money has not been credited to your account. The bank may have placed an extended hold on your deposited check.

Different checks might be subjected to different hold durations based on their amounts, sources, and any previous history with the issuing accounts. Weekends and bank holidays can extend the duration of a check hold since these days are not considered business days.

However, any holder in a joint account can deposit or inquire about holds, and actions of one account holder (like frequent overdrafts) might impact the hold policies for the entire account.What are the legal implications of a check hold.

Directly, a check hold does not affect your credit score. However, if a check hold leads to insufficient funds in your account, and you miss a payment or incur an overdraft as a result, that could negatively impact your credit score.

Understanding check holds can be complex. At CreditNinja, we recognize the importance of quick access to your funds.

Trust us to guide you through every financial challenge with clarity and confidence. For more personal finance information, and to answer questions like “what is a suspense balance.

References:.

Funds availability refers to when you can access money that you’ve deposited with your bank to pay bills, make purchases and cover everyday expenses. With some exceptions, money that you add to your checking account or savings account isn’t always available to use right away.

But the bank can’t keep your money on hold indefinitely. Federal law outlines rules for funds availability and how long a bank can hold deposited funds.

Here’s what you need to know about funds availability and how this works when making bank deposits. Funds availability describes when you can access the money you deposit into a bank account.

Specifically, Regulation CC covers two things: Under Regulation CC, the timing for when deposited funds will be available is usually based on the type of deposit, when you made it during the business day and, in some cases, the amount deposited.

These policies are usually disclosed to you when opening your account initially. Many banks also make their funds availability policies accessible online.

In other words, the bank wants to make sure that the deposit is good before giving you access to the money. Depending on the type of deposit involved, it can take several days for the money you deposit to be transferred from the payer’s bank to your bank.

Without a hold, you could write checks, pay bills or make purchases with your debit card against your balance. If the check you deposited ends up getting returned because the payer had insufficient funds, your bank would have to cover those payments.

Funds availability holds protect you and the bank against the consequences of returned payments. Having your bank hold a check can work in your favor if it allows you to avoid overdrafts and their associated fees.

Banks hold checks to verify that the check will be paid. Anyone can write a check to you, but if there isn’t sufficient money in their account, the check will bounce.

Checks get special treatment compared to other types of funds because there’s a degree of uncertainty surrounding them. With checks, institutions don’t know if the check is collectible until it’s paid by the institution it’s written from.

For example, if you’re depositing $5,000 in cash, the bank has money in hand to credit to your account. And wire transfers are typically irreversible—the person who sent the transfer typically can’t get the money back, so your bank can credit those funds to your account without fear of a reversal later.

Regulation CC permits banks to hold certain types of deposits for a “reasonable period of time,” which generally means: Funds availability timelines can vary, based on the type of funds being deposited.

At an ATM or night deposit. Second business day.

At another bank’s ATM. Fifth business day.

Electronic deposit. Up to the second business day.

In-person at a branch. Next business day.

At an ATM or night deposit. Second business day.

At another bank’s ATM. Fifth business day.

Treasury checks, Postal Service money orders, checks issued by the Federal Reserve or local government agencies. In-person at a branch.

Treasury checks, Postal Service money orders, checks issued by the Federal Reserve or local government agencies. At an ATM or night deposit.

Treasury checks, Postal Service money orders, checks issued by the Federal Reserve or local government agencies. At another bank’s ATM.

On-us checks (branches must be in the same state for same, next and second business day hold rules to apply). In-person at a branch.

On-us checks (branches must be in the same state for same, next and second business day hold rules to apply). At an ATM or night deposit.

On-us checks (branches must be in the same state for same, next and second business day hold rules to apply). At another bank’s ATM.

Mobile check deposit. Mobile app scan.

Regular paper checks, less than $200. In-person at a branch.

Regular paper checks, less than $200. At an ATM or night deposit.

Regular paper checks, less than $200. At another bank’s ATM.

Regular paper checks, more than $200. In-person at a branch.

remainder second business day. Regular paper checks, more than $200.

remainder second business day. Regular paper checks, more than $200.

Fifth business day.

For example, say you run a business online and use a PayPal account to process payments. The PayPal funds availability policy allows for funds credited as a pending balance to be held up to 21 days.

eBay follows a similar policy. It may hold payments received for up to 21 days to verify transactions were completed successfully.

Under Regulation CC, banks must follow the Federal Reserve guidelines for determining how long to hold checks. As mentioned above, banks can only hold checks for a “reasonable period of time,” as defined by Regulation CC.

It’s important to keep the timing in mind if you plan to write checks to pay bills, schedule electronic payments or make purchases with your debit card. In some instances, your bank’s funds availability policy may allow for longer hold times under extended funds availability rules.

After the cutoff time, the deposit will be processed with the next day’s batch of deposits. The cutoff time for making deposits at a branch may vary from the cutoff time for making deposits at the ATM or via mobile check deposit.

Regulation CC allows banks to have some leeway in determining funds availability hold times for certain types of deposits. The regulation requires your bank to notify you that the funds are being held and when they’ll be made available to you.

These situations can apply to deposits made at brick-and-mortar banks, online banks and credit unions. Again, financial institutions are bound by Regulation CC to ensure that hold times, whether regular or extended, are within reasonable limits.

The EFAA, implemented by Regulation CC, established maximum permissible hold times for checks and other deposits. With checks, the EFAA requires that:

The Act also requires banks and other financial institutions to inform customers about their funds availability policies and how they work. This information is provided through a funds availability disclosure.

Start with the types of deposits you make the most often. For example, if you rely on mobile check deposit to deposit checks, you should know how long you can expect funds to be held.

You also may want to discuss the best deposit option with your bank if you’re expecting a large payment. For example, let’s say that you’re selling your house and expect to pocket $40,000 at closing.

In this scenario, the wire transfer may be better if your bank makes those deposits available the same or next business day. While you may pay a fee for a wire transfer, it could be worth the convenience of not having to wait two to five busi.

Whether you’ve received a paycheck, a personal check from a friend, or a cashier’s check from the bank, there are several ways to deposit the funds into your account.

The following guide explains three ways to deposit a check to ensure your money ends up in your account quickly and securely. The mobile check deposit process allows you to submit your checks using a tablet or smartphone anytime, almost anywhere.

First, you must download your bank’s official mobile app from the app store before you can deposit your check. Once the app is installed, open it and log into your account using your credentials.

This signature is essential for verifying the authenticity of the check. Below your signature, write “For mobile deposit only” or “For deposit only at [Your Bank Name].” Some checks have a printed checkbox for mobile deposits.

Look for an option that says “Deposit” or “Deposit Checks” within the app and select it. Select the bank account where you want the check’s funds to be deposited.

Either way make sure the exact dollar amount of the check is correct. Take clear photos of both the front and the back of the endorsed check using your device’s camera through the banking app.

For example, place a white check on a dark-colored table before taking the photo. Before submitting your mobile deposit, double-check the details you’ve entered, making sure they match the check’s information.

After successful submission, keep the paper check until you can verify that the full amount is deposited into your account. This allows time for the funds to transfer and serves as a backup in case any issues arise.

Each ATM may work slightly differently. however, the process generally involves the following steps.

Using an ATM within your bank’s network can help you avoid fees and ensure a seamless process. Also, always prioritize your safety by choosing a machine in a well-lit and secure location.

Before using the ATM, sign the back of your check to authenticate the deposit. Insert your card into the ATM and follow the machine’s instructions.

On the ATM’s main menu, choose “Deposit” or a similar designation to begin the process. Choose the account in which you want the check funds to be deposited.

If not, you’ll need to manually input the dollar amount. Depending on the machine, you might have to place your check into a provided envelope.

Follow the screen prompts to ensure proper placement. The ATM will usually display the check’s amount for verification.

Answer any subsequent questions that appear on the screen. Once you’ve completed the process, collect any receipts and your card.

If you prefer to do your banking in person, you can visit your local bank branch to deposit your check. Here are the steps you’ll need to follow.

passport. This is used to confirm your identification and safeguard your transaction.

Tellers often use your debit card to quickly access your account details, making the transaction more efficient. You may have received deposit slips pre-printed with your account information when you first opened your bank account.

Fill in your name, account number, date, and the amount you’re depositing. If you’re unsure about any of the fields, the teller may be able to assist.

Sign your name exactly as it appears on the front of the check. Be sure to use the same signature style you used when you opened your bank account.

Now that everything is prepared, you can head up to the counter or the drive-thru line to meet with the bank teller. Be ready to present them with your ID, debit card, deposit slip, and endorsed check.

After the teller has processed your check, they’ll provide a receipt summarizing the transaction and cash if you requested it. Review the receipt carefully to ensure all details are correct and count any cash provided.

If you prefer to automate your paycheck deposits, you may choose to take advantage of direct deposit. This allows your employer to deposit funds directly into your bank account without providing you with a paper check.

In some cases, you may also need to provide a voided check or a deposit slip. Now that you understand how to deposit a check, you can choose the option that best meets your needs.

Whether you’re on the go and use one of our over 60,000 ATMs or prefer traditional banking methods like visiting one of our over 2,300 branch locations, we are dedicated to ensuring your transactions are smooth and hassle-free. To learn more about check deposits or other banking services, reach out to our team today.

Check kiting or cheque kiting (see spelling differences) is a form of check fraud, involving taking advantage of the float to make use of non-existent funds in a checking or other bank account. In this way, instead of being used as a negotiable instrument, checks are misused as a form of unauthorized credit.

The term “check kiting” first came into use in the 1920s. It stemmed from a 19th century practice of issuing IOUs and bonds without any collateral.

Kiting is commonly defined as intentionally writing a check for a value greater than the account balance from an account in one bank, then writing a check from another account in another bank, also with non-sufficient funds, with the second check serving to cover the non-existent funds from the first account.

If the account is not planned to be replenished, then the fraud is colloquially known as paper hanging. If writing a check with insufficient funds is done with the expectation they will be covered by payday it is called playing the float.

Some forms of check fraud involve the use of a second bank or a third party, often a place of retail, in order to delay the absence of funds in a transactional account on the day the check is due to clear at the bank.

Criminals have taken advantage of the check float to pass fraudulent checks through solicited users of online auctions.

In its simplest form, the kiter, who has two or more accounts at different banks, writes a check on day one to themselves from bank A to bank B (this check is referred to as the kite), so funds become available that day at bank B sufficient for all checks due to clear.

Complex versions of this scheme have occurred involving two separate people, each with an account at a different bank, constantly writing checks to one another, or a group of individuals writing checks circularly, thereby making detection more difficult.

Retail-based kiting involves the use of a party other than a bank to unknowingly provide temporary funds to an account holder lacking funds needed for check to clear. In these cases, the kiter writes check(s) to one or more places of retail (usually supermarket(s)) that offer cash back in addition to the amount of a purchase as a courtesy to their patrons.

This action is repeated as necessary until legitimate funds can be deposited into the account.

Another version of this scheme involves purchasing an item from a place of retail with a check, and returning it promptly for a cash refund, followed by depositing that cash into the transactional account. This is more difficult these days, as more places of retail will delay a refund on purchases made by check.

Retail kiting is more common in suburban areas, where multiple supermarket chains exist within proximity. While it is more difficult to detect and prosecute, it involves lesser amounts of cash than circular kiting, and therefore is a lower threat.

For example, suppose an individual has $10 in a bank account and no cash, but wishes to purchase an item costing $100. Here is how the fraud could be accomplished:.

While limits are often placed on an individual as to how much money can be deposited without a temporary hold, corporations may be granted immediate access to funds, which can make the scheme go unnoticed. This was the case with E.

Hutton & Co. in the early 1980s.

Check kiting is illegal in many countries. However, most countries do not have a float system and checks are not paid until they are cleared, so check kiting is impossible.

According to the United States Department of Justice, check kiting can be prosecuted under several existing laws including those against bank fraud (18 U.S.C. § 1344), misapplication (18 U.S.C.

§ 1005). It can draw a fine of up to $1,000,000.00, imprisonment for up to 30 years, or both, and many first-time offenders with no criminal background have received stiff sentences.

Although the United States prosecutes some paper hangers under federal law, most issuance of bad checks in the United States is prosecuted as a state offense.

Ordinarily, passing a bad check in Ohio is a misdemeanor, but large checks or multiple checks within a six-month period aggregating to large amounts make it a 5th-, 4th-, or 3rd-degree felony, depending on the amounts involved.

For example, Indiana’s check deception statute states that it is a defense if the person issuing the check “pays the payee or holder the amount due, together with protest fees and any service fee or charge,..

Cashier’s checks and money orders are considered to be safer forms of payment compared to personal checks, but they differ in terms of where you can buy them, what they cost, and when it makes sense to use one over the other. You can use a money order or cashier’s check instead if you have to pay someone and you don’t want to use cash or write a personal check.

Investopedia / Joules Garcia. The bank takes the money from your checking or savings account and puts it in its own account when you purchase a cashier’s check.

You’ll typically pay a fee to the bank for a cashier’s check to the bank, with the average fee at the nation’s largest banks hovering around $10.

The bank takes the money directly from your account and puts it into its own, so the check is guaranteed not to bounce. Whoever you want to pay is guaranteed to receive the money.

Cashier’s checks aren’t entirely foolproof, however, and fraudulent cashier’s checks can feature in financial scams. A scammer might present you with what looks like an official cashier’s check, which you then deposit into your account.

A cashier’s check is an official check that’s issued by a bank. It’s not the same as a certified check, which is drawn on a depositor’s checking account after the bank has certified and put a hold on sufficient funds to pay the check’s amount.

Another key difference is that a bank representative will sign a cashier’s check because the funds are technically drawn from the bank’s own account whereas the bank certifies the customer’s signature on a certified check is genuine.

It’s not to be confused with a certified check, which is a check drawn on a depositor’s checking account that the bank certifies there are sufficient funds to pay. Money orders are also a safer form of payment compared to personal checks.

Postal Service, convenience stores, drug stores, grocery stores and check-cashing companies. These places generally will also cash a money order they’ve issued, or you can deposit a money order into your bank account.

You must pay for a money order with cash, a debit card or traveler’s checks when you purchase one. You generally can’t use a credit card or write a personal check, and the transaction could be treated as a cash advance if you are able to use a credit card.

The fee may be less than $1 or as much as $5 depending on where you buy a money order and how much it’s for.

You must request a new cashier’s check from the bank if it’s lost or stolen, and, in most cases, you must purchase an indemnity bond from an insurance company. This bond protects the bank if you lose the cashier’s check a second time.

Replacing a lost or stolen money order is often as simple as returning with your receipt to the place where it was purchased and asking for a replacement or refund. The money order issuer may charge you a fee to replace it, but you can get it right away instead of waiting months for a cashier’s check to be reissued.

Money orders are generally easier to buy, but cashier’s checks are more secure. So which should you use and when.

The safety factor makes cashier’s checks the better choice if you’re making a large payment, perhaps for a car or a boat. In fact, a cashier’s check may be your only payment option in some cases.

Money orders are less expensive, making them more suitable for smaller payments or when writing a personal check isn’t an option. You might want to use a money order to pay rent or to send a few hundred dollars to a friend who’s short on cash.

The maximum amount for a U.S. Postal Service, MoneyGram, or Western Union money order is $1,000 as of 2023.

Contact the bank that’s named on the check to make sure it’s authentic before you accept it for payment from an unknown party or try to cash or deposit it. Contact the issuing bank right away if your cashier’s check is lost or stolen.

The bank can decline to honor the check if it’s been stolen or presented for payment by someone other than the intended individual or business if you’ve taken the necessary steps to report the loss. Money orders and cashier’s checks can be a convenient way to pay someone or to receive money.

Most importantly, keep your receipt or statement showing when the money order or cashier’s check was purchased in case it’s lost, stolen, or damaged.