Checking Account And Bank Fees.
Checking accounts at various depository institutions vary widely in terms of the fees associated with them. Common charges include those for books of blank checks, for checks written, and for returned checks and overdrafts. Many accounts may carry a general service charge or may incur a fee if the minimum balance falls below a certain level. Be sure you understand about all these different types of fees before you open a checking account.
How to Cash a Check Without a Checking Account.
People who do not have a bank account often have a difficult time cashing checks they receive, even Social Security, unemployment, or other kinds of government checks. Although some states have laws requiring banks to cash such checks for anyone who provides proper identification; in most states, banks have the right to refuse to cash any checks for noncustomers.
A person without a bank account has a few options for cashing checks:
* Providing proper personal identification, present the check at the bank on which it is drawn. The bank must either pay the check or refuse to pay it before the close of the business day.
* Ask a friend or relative who has a bank account to endorse the check and cash it. If the check is bad, though, your friend or relative's account will be debited for the check's amount.
* Use a check-cashing service. Many of these services will not cash personal checks, which they consider too risky. Most require a photo identification and will charge a fee, sometimes based on the type and amount of the check. Few states regulate check-cashing services, so fees can vary widely. In Indiana, the maximum fee is the greater of $5.00 or 10% of the face amount of the check.
Check-Writing Tips.
Remember that a check is a personalized form of money. Fill in all information clearly in a form that cannot be altered.
Always use a pen when filling out a check, never a pencil or felt-tip marker. Ink from a pen cannot be easily erased or smeared.
Always use the current date on a check; never postdate it. To avoid alteration, write out the date instead of using numerical abbreviations.
Put all check information as far to the left on each line as possible. When filling in the written amount, draw a line through any remaining space.
Avoid using abbreviations on the "pay to the order of" line. For example, write International Business Machines, not IBM, which could be changed to, say, I.B. Mooney.
To ensure legibility, print the written amount of the check; don't write it in cursive.
Make sure the written amount is exactly the same as the numerical amount. If the two amounts differ, the written amount is considered legally binding.
Sign your name neatly; your signature should match the one on file at your bank. Illegible scrawls are easy to forge.
If you tear a check or make a mistake when filling it out, void the check and write a new one. Remember to list any unusable checks in your check register.
