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You just received a tax refund check made out to you and your spouse. What now? Should you both sign the back of the check, or will only one signature suffice? Do you have to deposit it into a joint account? Can you cash it?
If a check is made out to two parties, both may have to endorse it before the check can be cashed or deposited. Details, including your bank's individual policies, can make a difference, so grab your check for reference and read on.
Do Both Parties Need to Endorse the Check?
You need two key pieces of information to determine whether you'll need one or both signatures.
- Check the line that's marked "Paid to the Order of." If it reads "Tom and Jerry," typically both Tom and Jerry must endorse the check. If it reads "Tom or Jerry," "Tom and/or Jerry" or "Tom, Jerry," the endorsement of either party may be enough.
- Find out what your bank's policy is. Many banks require both parties to endorse a two-party check. Some may even require both parties to visit a branch with government IDs in hand. Check with your bank or credit union for their requirements.
To endorse the check, turn it over and sign your names exactly as they appear on the front of the check in the signature space marked by an "x". You may also want to write your account number and the phrase "for deposit only" if you want to ensure the check is deposited into your account and not traded for cash.
How Do You Deposit a Check Made Out to Two Parties?
Again, your bank or credit union's specific policies will determine where and how you can deposit a two-party check. Generally speaking, if all the necessary parties have endorsed the check, you should be able to deposit it into a joint checking or savings account, or possibly into either party's individual account.
Do I Have to Deposit the Check at a Branch?
Some banks require both parties to appear in person to deposit a two-party check. If yours doesn't, you should be able to deposit your properly endorsed check at an ATM or using mobile check deposit on your bank or credit union's banking app.
However, if you're at all worried about whether you've followed the correct protocol, you may want to deposit your check in person at a branch. Branch staff can let you know on the spot if additional steps are needed, but once your check enters the ATM, you may have a hard time retrieving it to add a signature or deposit it into a different account.
What if the Other Party Can't Sign?
Check with your bank to see if the check can be deposited without both signatures. If the other party is out of town and their signature is required, you may have to send them the check for their endorsement or wait for them to return so they can sign it themselves. If the other party can't sign—for example, because they're deceased—you may need to ask for a new check made out only to you. Do not forge the other party's signature: Forgery is a crime.
Can I Deposit the Check into My Individual Account?
Your bank's policies determine whether this is possible. If your check is properly endorsed, some banks will allow you to deposit it into either party's individual account, but some banks require a two-party check to be deposited into a joint account no matter what.
Can You Cash a Check Without a Bank Account?
Although it may seem like a lot of steps are involved, depositing your check into a joint bank account is probably the easiest way to handle a two-party check. Once your deposited check clears, you can withdraw or spend the funds any way you'd like.
If you don't have a bank account, consider these alternatives for cashing your check:
- Go to the bank that issued the check. The check writer's bank is shown on the front of the check. Call or visit that bank and ask if they'll cash your check if you aren't an account holder.
- Find a retailer that cashes checks. Big-box retailers like Walmart and some supermarket chains offer check-cashing services, often at more reasonable rates than check-cashing stores.
- Visit a check-cashing store. Be forewarned: These businesses typically charge 1% to 4% of your check's value, often with additional fees added on. Also, check-cashing stores may not accept personal checks.
The Bottom Line
Dealing with a check made out to two parties can be surprisingly complicated—more so as we deal with fewer and fewer paper checks in our everyday lives. To that end, a final way around gathering signatures and visiting the bank branch is opting for electronic deposits wherever possible. Providing the IRS with your banking information, for example, allows them to send your tax refund directly to your designated bank account, no check needed.