Before online transfers, people used to do all sorts of things to get money from one account to another. Nowadays, it’s pretty easy to do so. You don’t even have to go to a bank anymore to transfer funds from account A to account B. You can do everything from the palm of your hand, via an app. Alternatively, you can use a computer and do the same thing if the app supports it.
However, there are still some scenarios where writing a check to yourself might save you time and energy. If you’re wondering how to do it, or whether it’s possible, you’re in the right place to find out. So let’s elaborate on that.
Why Would Anyone Write a Check To Themselves?
Before we even begin explaining why you would write a check to yourself, let’s first mention how checks work. There are several types of checks, but the idea is more or less the same. In most cases, the bank needs to approve that the amount stated on the check is available on the account holder’s balance. Cashier’s, private, or certified checks work on this principle. The difference is that the latter scenario implies that the funds are frozen but still a part of the account holder’s balance.
Checks are the alternative to transferring money digitally from one account to another. Once the payee draws the money from the bank, ATM, cashier, or any other place, there is no way to reverse the process. However, there can be fines if there’s no balance on the mentioned account on the due date.
Back on the matter of writing a check to yourself. The reason people do this is transaction policy. When you transfer money from one account to another, it doesn’t always clear on the same day. Depending on the bank’s policy as well as a couple of other factors, you might get the money after three days. For example, if you transfer the money from one account to another on Friday afternoon, the transfer won’t be complete until Monday. This is, of course, due to the bank’s policy of clearing but also international labor law. In other words, the transfer is basically skipping the weekend.
On the other hand, if you write a check to yourself, you may get the money on the same or the next day. Supposed you have money on one account and want to pay for a service or a product, but for some reason, you can’t. Either the type of payment card (debit, credit, etc.) isn’t supported for that transaction or some other reason. Transferring money from that account to another would take time, and you want the product/service on the same day. In that case, you can cash the check where both the payee and the payer is you. Once you do that, deposit the check and add the amount to the desired account and voila – the transaction is complete!
Also, it’s a safe way to add money to an account right from the counter. If you don’t have an account in the bank that’s available to you at that moment, but you want to send money, you can do so with a check. Simply go to a bank, ask for a check, fill it, and deposit the money. You’re basically using the bank as the payee, although you don’t have an account with them.
How to Write a Check to Yourself
So now that you know you can do it, you’re probably like: “I’m feeling curious about how I can write a check to myself”, right? The process is the same as with writing a check to any other account holder. You write the name of the payee under the “pay to the order of” section, state the amount and sign it.
You can get the check by visiting your bank and talking to a clerk or employee. Of course, you can’t acquire an unlimited number of checks. As every bank has a different policy, the number of checks available vary as well. It depends on your income as well as other factors – how long you have an account in that bank, employment status, etc.
Is It Illegal To Write a Check to Your Name?
So the only question that remains is, can you write a check to yourself without any consequences? Writing a check to yourself isn’t illegal. You’re simply starting a transaction from one bank to another using different accounts, both of which are on your name. However, in certain scenarios, there can be consequences.
Because no clearing is required as the bank guarantees the money, you will need to pay attention to the date on the check. For example, if you write tomorrow’s date on the check, and by that time tomorrow you spend the money on that account, the bank will charge you the amount plus the expense of fees. This is why it’s important to actually have the money on the account before the due date, which leads us to another question:
Can I write a check to myself with no money in my account?
The process goes like this:
- The bank issues you the check
- You fill the check and pay for the services/products
- The retailed gets the money from the bank
- The amount stated on the check is refunded from your account on the specified date
So basically, the bank lends the money with you being the endorser. The bank itself is paying the amount to whoever the payee is, but they have you to back it all from your account. However, if you can’t back it up because you don’t have the money, although you have an account, they will charge you.
Knowingly writing a check with no money on your account is also called check kiting. And it is illegal. It’s a fraudulent action that allows people to misuse the system and get access to otherwise non-existing funds. So instead of using a check as a negotiable tool, they are being used as a way to get unauthorized credit. So when they pay with a check, the only authorization the system needs at that moment is the existence of the account written on the check.
In other words, “writing myself a check” idea is only illegal if you knowingly write it without having any available balance on your account.
“For instance, it would be very illegal for you to write a check and then try to prepare this check if you knew there was no money in your bank account,”- says Diana Adjadj, an editor from ClassyEssay, essay writing service.
If you need info regarding online check issuing and online payment, be sure to visit checkissuing.com. It’s a great way to write a check online or get a check mailed to your very doorstep.