Thanks For The Check, Grandma. How Do I Turn It Into Cash??

Has someone ever given you a check, written on paper? Did you know what to do with it?


The traditional thing to do is take it to your bank, endorse it, and give it to a bank teller. The teller can than either give you the cash or deposit your check into your account.


How do you endorse a check? Turn it over and at the top of one end will typically be some lines for you to sign your name. Sign it just as it was made out. Then hand the check with your ID to the teller if you only want cash. If you want it put in your account, fill out a Deposit Slip which the bank will have on hand. You'll need your account number. If the check is made out to more than one person, then everyone needs to endorse it.

There may still be times when you need to write a check in payment for something. How do you write a check?
Make out the date, who it's to, and then write the amount in numbers. Then 'write it out' using words. Cents are written as below: 45c is 45/100.  Sign the check. In the 'memo' line you can note what it's for, or put an account number if it's to pay a bill.

Parts of a check

The Routing Number identifies your bank. Eventually this money will be 'routed' to the 'home' bank.

The Account Number is your personal account.

What about depositing a check online using your computer or phone?


On the phone, you'll need the app from your bank (if it offers this service). You follow their directions, but generally, take a picture of the front and the back, upload those pictures, and tell the bank which account to place this money in. Some basics here: https://www.consumerreports.org/cro/magazine/2014/10/pros-and-cons-of-mobile-check-deposit/index.htm

Sometimes, your bank may hold the whole check for a few days to be sure it 'clears,' or that it's a good check. Ask about that, because you don't want to make a purchase thinking your account has that money in it only to find it wasn't credited yet.


After a couple of weeks after the check was successfully deposited, shred it so that no one can attempt to cash it again.


Are there any problems with depositing a check this way? Yes, there are some to think about: https://money.usnews.com/money/personal-finance/articles/2012/10/09/how-to-deposit-checks-with-your-smartphone


Some other tips about banking:
*Set up online banking so that  you can check your balance and which expenses have been taken out (checks cashed, online bills paid) and which deposits have been credited. Go to your bank's website and follow their directions. Check your account daily: if anyone hacks into it, you'll see it early on.
*Assuming you have a checkbook, use your check register to write down all the times you use your account, whether it's just for your debit card, or if you write checks sometimes. It's one way to track where your money goes, and it gives you the numbers to check and see if they match your account online.

*Use different passwords for different stores/services. If you use the same password for everything, that will cause a major headache if someone discovers it and can get into your checking account and/or credit cards.
*Be sure you know if the ATM you are using charges a fee. Those who honor your bank's card will not charge any extra to use it.
*You may need to actually go to the bank once in a while. Do you know where it is, and what their hours of operation are? Not every bank is open evenings.
*Just because your bank offers you a credit card does not mean it's the best deal you can get. Shop around for the lowest interest rate and other fees. They are often hidden in 'the fine print,' literally tiny words that are hard to read. All credit cards charge fees for various things, like an annual fee which can be $50 or more.
*If you sign papers for a credit card, you will then have that credit card until you cancel it, whether you use it or not--and you'll pay their yearly fee (if they have one) whether you use it or not.
*You can set up automatic bill paying from your account. That way, your bills will be paid on time...but if you sometimes run low in funds, you may want to pay the bills yourself when you are ready.
*An overdraft is when you write a check for more money than you have in your account. Ironically, most banks now charge you $35 every time you do that......which comes from an account that's already empty. Usually you won't even know something got messed up until you already have several of those $35 charges on your account. When you try to cash a check without having enough money in the account, it may come back marked "NSF," which means Non Sufficient Funds.

*If you are under 18 you may need a parent to co-own the account with you. This means that your parent can observe any account activity, too.


Checks are used less and less, but it's good to know how they 'work.' Especially if you receive one!