If you have a checking account, you've probably dealt with depositing checks. In general, checks are meant for the person they are written out to. When you are the payee, you're the only person that can do anything with that check.
However, sometimes you may find yourself in a situation where you need to endorse a check to someone else, or you need to deposit someone else's check into your account. Different banks and credit unions have different rules, but many banks allow this under certain conditions.
Is Depositing Someone Else's Check Into Your Account Allowed?
There may be a case in your life where a friend or family member asks you to deposit their check into your account. This could be because they are unable to deposit the check or because they want to transfer the money from the check directly with you.
In general, many banks and credit unions allow this. However, you'll want to check with your financial institution before you initiate the process. If you do not follow their specified rules, it can result in the check being voided.
Call your bank and explain that you intend to deposit a check that has been made payable to someone else. Ask what you need to have them write on the back of the check, and be sure to ask if you both need to be present to deposit it. Some banks require a form of ID from the other person so that they can validate the identity of who is signing over the check.
Having Someone Endorse a Check So You Can Deposit It In Your Account
The exact process whereby someone endorses a check so that you can deposit it into your own account may vary from bank to bank or credit union to credit union. In general, this involves the person writing your name on the back and signing the check. Every check has a specified area on it where the payee can write their name or other information.
Typically, this involves writing the phrase "Pay to the order of: Your Name" and signing their name underneath your check. Again, be sure to check with your financial institution to make sure that you are going through the process correctly.
Having Someone Endorse a Check So You Can Deposit It In Their Account
Depositing a check for someone into their own account is a bit more straightforward as it does not involve the transfer of payees.
If you can, it is a good idea to get a deposit slip from the person who wants you to deposit the check. They can write their account information on it, sign the back of their checks, and all should go smoothly at the bank. This also means you'll have a clear record of the money you deposited to give to the payee.
If you cannot get a deposit slip, you can have the payee write "For Deposit Only" on the back of their check, along with their account number, and then sign it.
Alternative Ways to Deposit a Check
If you or someone else needs to deposit a check, but you are having trouble getting to a branch, there are other hassle-free ways to solve this problem.
Many banks and credit unions offer mobile check deposits, and you can encourage your friend or family member to use this and then transfer the money directly to you once it is processed. If the financial institution does not offer mobile deposit, check and see if they offer ATM deposit.
In addition, many credit unions participate in shared branching that allows members to conduct business at other credit union locations.
Protect Your Checking Account
You should always be wary when depositing checks that are not intended for you or checks that you are not sure of the origin of into your account. If you deposit a bad check, even unknowingly, you can end up in a bad situation.
If a financial institution determines that you have deposited a bad check, you can be met with penalties. For one, you may be responsible for paying the check back to the bank. The bank can freeze your account, and in some extreme cases, even close it. If you've used the funds to pay a bill or make a car payment and the check bounces, these payments could be canceled and affect your credit score.
Overall, you want to avoid depositing checks into your own account until you are sure they are valid. You can call the bank that issued the check at their customer service line to verify that it is for a valid amount.
Click below to find out ways to protect your checking account.
How to Protect Your Checking Account
You may be looking for the best way to deposit money into another person’s bank account, whether you wish to pay a friend back or give some birthday cash to a relative. Fortunately, there are several options available, whether you’re looking to deposit the funds electronically or in person at a bank branch.
1. Deposit cash at the bank
You can put cash into someone else’s account by going to a bank where the person holds an account and giving the teller the person’s name and account number.
Some banks, however, don’t let you deposit cash into someone else’s checking account. They include the three biggest banks — JPMorgan Chase, Bank of America and Wells Fargo.
As the banks see it, the decision to ban cash helps prevent money laundering and fraud — cash is hard to trace, after all. It’s also expensive to process.
Though you might feel inconvenienced, there are alternatives — some of which are quicker than depositing cash into someone else’s account at a branch.
2. Make an electronic transfer
You can easily transfer money into a friend or relative’s account through a service such as Venmo, PayPal or Cash App. You can also move money to others through Zelle — and since most banks already include Zelle in their offerings, you won’t likely need to sign up for this service separately.
Take precautions when using any of these digital options. When you send money to someone else through these kinds of services, the payments are often irrevocable. Only send money to people you know and trust to avoid falling victim to a scam.
If your bank doesn’t offer Zelle, you can still send an electronic bank transfer through your online banking account by entering the recipient’s bank account number and routing number. Though Zelle moves money in minutes, this kind of bank-to-bank transfer can take a few days.
3. Make a wire transfer
A wire transfer is another option for transmitting money to someone else’s bank account. Wire transfers can be done at banks, credit unions, or providers such as Western Union or Wise.
To conduct a wire transfer, you’ll usually need the account number, routing number and name of the recipient.
Wire transfers may be your best bet for sending large amounts of money, as those done through a bank often don’t have limits, as long as you have enough funds in your account. What’s more, domestic wire transfers are often conveniently processed the same day, sometimes within a matter of hours.
Wire transfers can be pricey, however, compared to fee-free services like Zelle. Fees for domestic outgoing wire transfers can cost as much as $35, while international ones tend to range from $35 to $50.
4. Write a check
Though paper checks are falling out of favor, you can still deposit a personal check into someone else’s bank account. Checks pose less of a threat to banks than cash deposits because financial institutions can trace the money with a check.
“The key question is always: ‘Where did you get that money?” says Marc Trepanier, principal fraud consultant at ACI Worldwide, a software provider. “With a check, we know where it came from. It came from another account.”
Just like cash, a check can be deposited into another person’s account at a branch when you present it to the teller, along with the recipient’s name and account number.
Unlike cash, the downside is your bank won’t always make the funds available immediately.
“The check can clear and settle in hours depending on the circumstances,” says Bob Meara, senior banking analyst at Celent, a financial-services research and consulting firm. “But most banks wait a business day for funds availability for most customers simply so they can see if the check clears.”
5. Use a cashier’s check
Instead of writing a personal check, you can deposit a cashier’s check into someone else’s bank account. You can obtain a cashier’s check — also known as an official bank check — by paying the bank upfront for the full amount of the check. The bank then creates the check for the requested amount and lists the intended recipient as the designated payee.
The benefit of a cashier’s check is there is no risk of it bouncing, since it’s backed by the issuing bank’s funds, and a cashier’s check usually clears more quickly than a personal check.
6. Use a money order
If you don’t want to use a personal or cashier’s check to deposit money into someone else’s account, using a money order is an alternative, old-school option.
Like a check, a money order is a paper document that provides funds, but it’s not tied to a bank account.
You can buy a money order at banks and credit unions, post offices, chain drug and grocery stores, and some big-box retailers. There is a cost, but money order service fees are relatively cheap. For instance, the U.S. Postal Service charges $1.45 for domestic money orders up to $500.
The money order comes with a receipt, and even if it is lost or stolen, a money order can typically be replaced. Like cashier’s checks, money orders are prepaid, so there’s no risk of them bouncing.
See what other banks offer
There are plenty of ways to deposit funds into the account of a friend or relative. Not every bank allows for all methods, so if your bank doesn’t offer the service you find easiest or need to use, it may pay to switch banks.
What’s more, a different bank may offer other perks, such as better rates on CDs, savings accounts and mortgages or even a more useful mobile app.
“Look for the bank that is known as being the most consumer centric,” says Ciaran Chu, head of cloud transformation at ACI Worldwide.
Bottom line
Moving money into another person’s bank account can be quick and inexpensive with electronic options like Zelle, Venmo and wire transfers. Old-school alternatives — such as depositing cash, checks or money orders in person — are also still viable options, although they may require more processing time and a trip to the bank.
–Senior editor Mary Wisniewski contributed to this article.