192 Unit 2 Managing Your Finances
Endorsing Checks
Before you can cash or deposit a check made out in your name, you must
endorse it. To endorse a check, sign your name on the back of the check in the
space indicated for a signature. There are three ways to endorse a check:
•
Blank endorsement. This requires only the signature of the payee.
The payee is the person to whom the check is written. A check
endorsed this way may be cashed by anyone. For your protection,
use this type of endorsement only at the time and place you cash or
deposit a check.
•
Restrictive endorsement. A check with this type of endorsement
may be used only for the specifi c purpose stated in the endorsement.
For deposit only is a common restrictive endorsement. It is often used
when banking by mail or depositing at an ATM.
•
Special endorsement. This is used to transfer a check to another
party. Only the person named in the endorsement can cash the
check. To use a special endorsement, write Pay to the order of _____
(the name of the party to receive the check). Sign your name as it
appears on the check.
Writing Checks
A blank check has important information on it. This information helps
fi nancial institutions process checks correctly. For checks to be processed,
they must also be written correctly. When writing a check, enter the fol-
lowing items in the correct spaces. See 8-10.
1. date
2. name of the payee—the person, business, or organization receiving
the check
425
MEMO
Lee's Grocery
15.32
Mar 2, xx
Fifteen and 32/100
Groceries Thomas B. Anderson
Payee’s
name
Amount in numbers written
close to the dollar sign Date
Reason for
writing the check
Amount in words, written as far
to the left as possible, and a line
drawn through remaining space
Signature that
matches your bank
signature card
8-10
Write checks neatly and
carefully to avoid mistakes.