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How to Write a Check

Writing a check may seem straightforward, but there are essential steps to ensure it's done correctly. Start by entering the date and payee, followed by the amount both in numbers and words. Sign the check on the signature line and consider adding a memo. Always endorse the back when cashing the check. Monitor your checking account by reconciling your transactions to maintain accurate records, avoid overdraft fees, and protect your credit. This guide will help you navigate the process of writing checks and managing your accounts effectively.

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How to Write a Check

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  1. How to Write a Check Economics - Auwers

  2. Vocabulary • DDA (Demand Deposit Account) • Payee • Signatory • Written amount • Number amount • MICR encoding • Route and transit number • Account number • FDIC • Overdraft • Fees • Reconciling your account • Endorsement • Stale dated

  3. Why a checking account? • Checking accounts make it easy to access your money because you are allowed unlimited withdrawals – hence the name DDA or demand deposit account. • Checking accounts help you keep track of how you are spending your money making it easier to budget. • Maintaining a checking account without overdrafts can help you establish good credit. • However, it is your responsibility to maintain your balances to avoid fees which are very expensive and damage your credit report.

  4. Step One • Start by writing the date and the payee When cashing a check it must be less than 6 months old or it is considered stale dated. http://banking.about.com/od/checkingaccounts/ig/How-to-Write-a-Check/1write_a_check_step2.htm

  5. Step Two • Now write the amount of the check in the numerical line $___________...

  6. Step Three Write - out the dollar amount next; this is the amount the bank will use to cash the check !

  7. Step Four • Now it’s time to sign the check on the signature line and write in the memo if you choose to …Never sign the check before it is totally made out. A blank check that is signed is available for anyone to use!

  8. Step Five • When cashing a check your signature or endorsement is required on the back of the check. • TIP • Keep your signature the same once you begin signing legal documents. • Never use pencil or erasable ink as the check could be altered .

  9. Step Six • Keeping track of your deposits and checks is called reconciling your account . It means you are checking to see that the bank has properly encoded (MICR) your transactions. • If asked by the bank the MICR encoding is read as follows: first the route and transit number (this shows the Federal Reserve Branch and the institution’s number) • The middle set of numbers is your account number • The last number is the number of the check that was written. • The same is true of the deposit tickets…

  10. The Process of Recording Keeping accurate records is very important!

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