Personal Banking Check

By: EconomyWatch   Date: 9 September 2010

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Personal Banking Check refers to a financial instrument which is used to transfer money from one person to another without carrying cash. These Personal Banking Checks are drawn against the funds lying in the account of the account holder. If it is found that there are insufficient funds in the account of the issuer of the check, then the Personal Banking Check is bounced or dishonored.

Personal Banking Check Basics

By issuing Personal Banking Checks the issuer wishes to pay a certain amount of money to a specific person. The person who gets the check presents it on the counter of his bank or deposits it to his bank account. But, if there is no sufficient balance in the account of the issuer, then the person who receives the Personal Banking Check is not able to get the specific Check Amount of money even he presents the check at his bank counter and demands the money. If he deposits the Personal Banking Checkto his bank account, then also the check amount is not credited to his account. If this thing happens then it is called that the Personal Banking Check has bounced.

Information on Personal Banking Check

On a Personal Banking Check the information that are printed are the name of the bank, name and address of the branch of the bank which refers to the Place of Issue and the Check Number.

The information that the customers are to provide by writing on the check are the Account Number of the Check Issuer, Date of Issue, amount of money in words and in digits, Payee Name and the Signature of the Check Issuer.
If any of these information are missing on thee Personal Banking Check, then that check cannot be cleared by the clearing house.

Validity of Check

A Personal Banking Check generally remains valid up to six months from the date of issue. But the validity period of Personal Banking Check vary from country to country.

Types of Personal Banking Check

  • Bearer Check

    As the name suggests, this type of check refers to the Personal Banking Check which is payable to the bearer. A Bearer Check generally don't contain the Payee Name, it is written as payable to Bearer. These kinds of Personal Banking Checks pay the money to the person who possess it and presents it before the bank.

  • Certified Check

    Certified Check is that Check which carries the guarantee of payments by the bank authority. For the Certified Checks, the bank promises the payee that the check will not be dishonored in any case and as a proof the bank makes a notion on the front side of the check.

  • Travelers Check

    Travelers Checks can be signed and forwarded to any one to pay him a certain amount. As the name suggests ,these Checks are generally used by the travelers as a substitute to carrying hard cash. But as these checks are almost as liquid and as accessible as cash, they are very prone to loss and theft.

  • Counter Check

    This is a Personal Banking Check which is provided to the customers by bank when the customers run out of checks. These checks are generally used for withdrawal of money on an emergency basis.

  • Order Check

    This type of Personal Banking Checks are generally found in the banking system of U.S.A. This kind of Checks pays the check amount to only the person whose name is written as payee name on the check. Otherwise, if the Payee endorses someone then also that person can encash the check amount by presenting the check.


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