When it comes to finances, everyone has different needs. What works for one person might not work for another. And that’s okay! Financial situations and personal preferences change over time. It’s important to have a variety of financial tools at your disposal so that you can meet your goals and remain accountable in doing so. That being said, there are some services that won’t work for everyone. If you need to deposit a check from someone else, read on to see if you qualify.
Can You Deposit A Check For Someone Else?
One of the most common questions I get asked is “Can I deposit a check for someone else?” There are actually two ways to answer this question. The first is that you can, but it would be against the law. The second and more important way is that you cannot, but there are some things that you can do to help your check get deposited faster.
What Is A Check From Someone Else?
A check from someone else is a check that is made out to you. You are expected to deposit the check into your bank account, and then pay the third party from whom you received the check. You need to be careful when accepting checks from others, as you could be held liable for the cash if someone tries to cash the check and the funds are not available. Most banks and credit unions will allow you to deposit a check from someone else if there is no pre-existing relationship between you and the person who wrote the check. For example, you can deposit a check from a landlord, a contractor, or even a family member. What you cannot do is deposit a check from a friend who owes you money; this could result in an overdraft.
When You Can Deposit A Check From Someone Else?
- If you are a tenant and the landlord wrote a check to pay your rent.
- If you are renting an apartment and the landlord wrote a check to pay your rent.
- If you are leasing equipment from a company, and the company wrote a check to pay for the equipment.
- If you are receiving money from an inheritance, pension, or retirement plan, and the bank or employer (wherever it came from) wrote a check to pay your bills or fees (for utilities, cable television, etc.).
- If you have a business checking account at your bank or credit union and someone is paying them for services rendered.
- A person who has purchased something from you can write out a check for payment of that purchase, but they cannot deposit it into their own bank account if they do not have enough money in their account to cover it!
- A person who has given you a loan can write a check to pay you back, but they cannot deposit it into their own bank account if they do not have enough money in their account to cover it!
- You can deposit a check from someone else if you are independently wealthy; that is, you don’t need the money from the check or want any of the money from the check.
- If you are the parent of a minor child and you are paying for the child’s private school, tuition, or college expenses.
- If you are the parent of an adult child, and you want to deposit a check from your adult child into their bank account to pay off a loan they have taken out on their credit cards.
- You can deposit a check from someone else if you are independently wealthy; that is, you don’t need the money from the check or want any of the money from the check. And/or, you have no relationship with that person whatsoever!
- If you are independently wealthy; that is, you don’t need the money from the check or want any of the money from the check. And/or, you have no relationship with that person whatsoever!
When You Cannot Deposit A Check From Someone Else?
- If you have an account with the financial institution where you received the check, then they will most likely allow you to deposit the check. However, if they do not allow it, then you can still deposit the check. You should contact your bank or credit union and ask them to re-evaluate whether or not they will allow you to deposit the check.
- If you do not have an account with the financial institution where you received the check, then you will need to go to a different bank or credit union. The first thing that you should do is contact your local branch of the Federal Deposit Insurance Corporation (FDIC) and ask them how long it will take for you to get your money out of the institution where you deposited the check.
- If your deposit is not processed by Wednesday at 2:00 PM, then call back and speak with a customer service representative if possible. They may be able to assist you in getting your deposit processed faster so that it can be deposited before Friday at 2:00 PM.
- If your deposit is not processed by Friday at 2:00 PM, then call the FDIC again and ask them if they have a way to get your deposit processed faster. They may be able to help you by sending a wire transfer or check directly to your account.
- If you still do not have the funds in your account on Monday at 2:00 PM, then call back and speak with a customer service representative if possible. They may be able to assist you in getting your money faster so that it can be deposited before Tuesday at 2:00 PM.
- If your deposit is not processed by Tuesday at 2:00 PM, then call the FDIC again and ask them if they have a way to get your deposit processed faster. They may be able to help you by sending a wire transfer or check directly to your account.
- If your deposit is not processed by Wednesday at 2:00 PM, then call the FDIC again and ask them if they have a way to get your deposit processed faster. They may be able to help you by sending a wire transfer or check directly to your account.
- If your deposit is not processed by Friday at 2:00 PM, then call the FDIC again and ask them if they have a way to get your deposit processed faster. They may be able to help you by sending a wire transfer or check directly to your account.
Tips For Depositing Checks From Someone Else
- Put the check in an envelope with your name and address on it.
- If you are depositing a check from a landlord, contractor, or tenant, fill out a deposit slip to let your bank know that the funds are from a third party.
- Take both the check and identification to your bank so that they can verify that you are allowed to deposit the check.
- Put the check in your bank account as soon as possible so that you are not charged a service fee.
- If you have to put money down as collateral, make sure that you save the receipt from your bank so that you can get it if there is a problem with the check.
Bottom Line
You can deposit a check from someone else if you have no pre-existing relationship with them. This can be useful when you expect to be paid from a client, contractor or vendor, or when you receive a payment from a friend or family member who is out of town or out of the country. You need to be careful when accepting checks from others because you could be held liable for the cash if someone tries to cash the check and the funds are not available. You can avoid this by initialing the back of the check to indicate that you have received it, getting a receipt, keeping a record of the check, and depositing the funds as soon as they are available.