Welcome to Banking 101 with your friendly teller, Jules.
Some disclaimers up front: This is meant to be basic information to give you a starting point and also resources on how to find answers to more complicated questions. It’s also very specific to the (U.S.) bank that I work at, and while some things may carry over between banking institutions, not all things will.
First things first! How to ask questions and get what you need from your local bank employees. The main thing to remember is that you should treat bank employees like any other customer service workers -- be polite, don’t assume we can work miracles or have all the answers up front, and if you don’t click with someone personality-wise or don’t feel they’re being helpful, try another employee or another branch, or ask to speak with the bank manager about your concerns. There are some people who are VERY good at their jobs, and some people who are only there to pick up a paycheck. You have a right to deal with the first.
To help frame your question, you should first know what your goal is, but don’t assume you know the path to get there. Bank policies and products are changing all the time, and absolutely no one expects you to be on top of it if you don’t work at the bank, but it does make it easier when you know what you want to accomplish.
For example, if you are depositing a check but you need the funds to be there as soon as possible because you have debits that will be coming out soon, let the teller know that politely. “I need to make this available as soon as I can to cover some purchases I made.” We’ll then take the route that best accomplishes your goal while also protecting you and following bank policies. We may also give you options and ask which one would best suit your needs.
If you are opening an account, have an idea of what you need that account to do for you. Most banks will have special accounts for teenagers (under 18), college students, people who have had trouble managing their money in the past, etc. in addition to the “everyday” type accounts and the special accounts for affluent customers with high incomes. Be sure you’re honest with your banker, and ask questions if you aren’t clear on the terms of the account. No one expects you to understand everything right away, and because we’re in the business, some bankers may accidentally slip into “bank-speak” and use terms that you aren’t sure what they mean. Don’t be afraid to ask for clarification.
The most common mistake I see people make is that they just open the account, get the debit card, and don’t retain the information about fees, overdrafting, spending limits, etc. and then they’re taken by surprise when something happens. Don’t let that happen to you.
The most common type of account and the most common dealing you will have with your bank is a Checking Account. This is an account where you deposit money and then spend it by either withdrawing cash (at an ATM or from a teller) or by use of a debit card (these used to be called “check cards,” and some people may still refer to them as such). Your debit card will also likely be endorsed by a major credit corporation, such as Visa or MasterCard, in order to be used as a credit card. However, if you use your debit card with a “credit” function, it will still come out of your bank account directly and it will not accrue interest or give you time to pay as a credit card would.
Most checking accounts come with fees attached. Some do not, especially teenager accounts, college accounts, and some credit unions may not charge a fee for their accounts. However, MOST banks will also provide easy ways to waive those fees (if your bank does not, or if the fee waivers are unattainable for you, it might be time to shop around to find a bank that offers options that are more in line with your needs. I closed my account at one bank because they charged a fee unless I kept a certain balance in the account, and I was unemployed at the time. There was no way I was keeping a $1500 balance in that thing). Be sure you are clear on what those fee waivers are when you open your account.
Your checking account should be active (most fee waivers exist to be sure you are actively using your account). If it is left inactive for too long, or if you leave it with a zero or negative balance for a month or so, the account will most likely close automatically. There is also the fact that most banks will reward you for using your account responsibly. They do this by making larger portions of your check deposits available immediately (cash and direct deposits are ALWAYS available immediately), giving you more freedom for transactions and withdrawals, etc. because they are relatively confident that you’re a financially responsible person and they won’t be losing money by giving you a bit more free rein.
Personal checks don’t see as much use these days as they used to, what with the advent of electronic payments, and as such, a lot of people don’t know how to use them. Some tips for dealing with checks!
If the check is dated for a future date (“post-dated”), your bank can’t do anything with it. The teller may make a mistake and miss the date, but most tellers will notice and tell you sorry, bring it back on that day. (It also has to have a date in general. That part can’t be left blank.)
The person the check is made out to must be present for it to be cashed, or else it can be deposited into an account with their name on it. You may have heard that you can “sign it over” to someone else, but there are very strict limits on this. When you sign your check over to someone (ie, you sign your name on the back of the check, write “Pay to the order of [person’s name]”, and then that person signs below that), all that does is means that the person you are signing it over to agrees that if, after cashing that check, it comes back as a bad check, then their account will be debited the amount of the check. You still have to be there for it to be cashed, and it cannot be deposited into their account unless your name is also on the account. There are security reasons for this. Imagine that your grandma sends you a $50 check for your birthday, and you go ahead and endorse the back of it because you’re planning to take it to the bank later that day (or week, I don’t know what your life is like). Imagine then that your brother finds that check in your room when you’re in the shower, writes “pay to the order of [his name],” and then signs the check, and then goes to cash it, or deposits it into HIS account. Well, that’s not fair, is it? You didn’t give him permission to do that. But he told the teller that you did. “Oh, it’s my sibling. They signed it over to me.” Nah. If you’re not there with your ID to prove that it’s your check and you’re okay with your sibling using his account as collateral to cash it, then we can’t do a thing with it. Just deposit it yourself and give him the cash if you owe him $50 or whatever.
The bank will always go by the “written amount” of the check, not the numerical amount. When you write a check, there is a little square box over to the right side that you write the number in -- say, “45.95.” Then there is a line where you write the words out. “Forty-five dollars and 95/100.” The bank will always, always, go by the words you wrote if it disagrees with the number you wrote. And importantly, the word “and” ONLY goes between the dollars and the cents. Therefore, if you write a check for $125.00, but you write the words out as “One hundred and twenty-five,” (instead of “one hundred twenty-five”) then that means the bank has to negotiate that check for $100.25, no matter what the numbers say. If it’s clear that it was written in error, they may return the check to you and advise you to take it back to the maker (the person who wrote it to you), and get them to correct it so you can get that extra $24.75 that you’re owed.
The person who wrote the check needs to be person who signs the check, who ALWAYS has to be the person who owns the account. I’ve seen it happen way too often that someone will bring in a check that someone wrote out to them but left the “Pay to the order of” line blank and told them to write in their own name. If the handwriting doesn’t match, we can’t do anything with that check. Again, it’s a security reason. Imagine someone found a check you were interrupted in the middle of writing while you went to double-check the spelling of a company name. Imagine they wrote their own name in that space and took it to the bank. Well, you were trying to pay your credit card payment with that $90, but now it’s going to Greg who wrote his own name in that spot. Nope. Can’t do it. Not today. So if someone asks you to write your own name on a check, you need to tell them no, I can spell it for you if you need me to, but you have to write it. Also, for the love of all that is holy, do not tell someone they can “sign your check” for you. We check the handwriting and signature against a database of scanned-in checks from your account number, and if there is a signature on file that matches the one on the check in front of us? Then that means it’s all right for us to negotiate it. So if someone else has signed your check once with your permission, and we process it, then that means it goes into a database that is used to say any future checks -- of yours -- that that person signs -- possibly without your permission -- is all right, because the signature matches.
If you make a mistake, don’t correct it, write a new check. You may have heard that if you make a mistake on a check and correct it and initial it, it will be all right. But in an age of increased security risks and fraudulent checks, most banks will not take the risk of negotiating an altered check. It’s really hard to tell that you’re the one who made the change, and you’re the one who initialed it. So just -- if you write the wrong date, or you write the wrong amount, or you write the wrong name… just get a new check and start over.
Also, a quick note: If you do not have a bank account, or if you need a check cashed and your bank account isn’t enough collateral for your bank to cash it, you can take it to the bank that it’s drawn on (aka, the bank that it lists on the check as the owner of the account), and assuming you have sufficient identification, they can cash it for you. They may need to run extra verification checks, since as a non-customer you are a risk to the bank if the check is fraudulent, and they will probably try to talk you into an opening an account with them (it’s their job, and depending on your situation, might be a good idea!), but they will be able to cash it if it is, in fact, a good check.
That’s a basic rundown on the most common issues I see at work. If there are any questions or topics you want me to address, you can always ask me and I will do my best!
