Stage Three: Endorsing a Check
If you get a check that’s made out to you (such as your paycheck or a gift of money in the form of a check), then you need to endorse it. This means that you sign your name on the back of the check. Then you either deposit the check in your credit union account, or you take the amount of money in cash.
To endorse your check, sign your name the way it appears on the front of the check. Sign it only when you are ready to either cash the check or deposit the money into your account. Otherwise, if you lose a signed check, someone else could cash it and get your money.
There are two other ways to endorse a check:
Special EndorsementUse this endorsement when you want to give someone else the money; this is often referred to as “signing the check over to someone else.” To do this, write “Pay to the order of” and that person’s name below it. Then sign your name beneath that. Now that person is the only one who can cash the check.
Restrictive EndorsementUse this endorsement when you want your check to be very safe, such as when you send it to your credit union in the mail. Write “for deposit only” in the endorsement area and sign your name beneath that. Now the check can only be deposited into your account; it can’t be cashed.