Quick banking question...

BrandNewDay

OK... I just want to be sure before I send off a check:

If a check is made out to "John Smith and Jane Smith" or "Mr. and Mrs. Smith" does it have to be deposited into the Smith's JOINT checking account, or can it be deposited into EITHER John or Jane Smith's checking account?

I've got two checks I want to deposit, but they're both made out to both of us, but we don't have a joint account. One says "John Smith and Jane Smith" and the other "Mr. and Mrs. Smith." My husband is worried that we won't be able to deposit them into any account except one named exactly as the check specifies.

regularsaver1

Will only be accepted in a joint account as they are account payee only - meaning you both are entitled to 50% of the cheque in simple terms

can he get the checks re-written but in his sole name?

regularsaver1

A cashier should check them and reject them

BrandNewDay

So, you're all three saying they won't be accepted into either of our accounts?

OK, we'll try to get new ones. I don't have very good feelings about the one.... it took weeks to even get the estate agent to send us our deposit back. I guess they'll have reason to stall, again. And, how suspicious is it for one or the other spouse to ask for the check to be written out solely to them?

regularsaver1

unless you open a simple joint instant access savings account or something

who do you bank with?

quote from global investor:

Account payee
Definition (UK specific)

Also 'account payee only'. Words written on the face of a cheque between two parallel diagonal lines. The purpose is to ensure that the cheque may only be paid into an account in the name of the payee, that is the person to whom the cheque is made payable. This means that the payee cannot sign it in favour of another person.

and I have found this on the British Banks Association site - it does say ask your bank.:

Normally cheques which are crossed'account payee' can only be paid into the account of the person named as the payee. In the specimen example, this would mean the cheque should be paid into the account of J Johnson. However, if J Johnson has a joint account with, say, his wife, it could be paid into that joint account so long as the name J Johnson appears as one of the account holders. The law relating to "account payee cheques" was changed by the 1992 Cheques Act. For more information, contact your bank.

Cypher

I'd try and pay them in at a bank and see if they are accepted before you go to the trouble of getting the cheques rewritten.

BrandNewDay

We can't get to either bank - we've moved to Scotland. I will be getting an RBS account soon, if they'll let me (being new in the UK means some banks won't let me.) Getting a joint account would be equally difficult, if not more so, for reasons I don't want to go into, here.

Until now, we've always asked for checks to be made out to ONE of us, but both of these entities have ignored/forgotten our request.

inmypocketnottheirs

Very simply a cheque has to be paid into the account that is named on the cheque. A woolwich cardsaver account is quick and easy to open with no credit checks. Just both of you pop into a branch with as much nID as you can raise and it should be opened immediately.

HTH

BrandNewDay

Our only options are RBS, Bank of Scotland, and Clydesdale Bank. DH has a Coop account and I have Barclays, but they're all down in England.

BrandNewDay

Hey! DH just thought of a perfect solution! The biggest of the two checks (one is £700, the other £19) is made out to "Mr. and Mrs. Smith." We're going to give it to his parents - Mr. and Mrs. Smith! They're visiting tonight and we'll give them that check and they can write a check out to me. (Actually, since they're from Manchester, I'll just give them a deposit slip and they can deposit it for me when they go home next week.)

As for the smaller check - DH will try to deposit it in his co-op account at the Post Office. Failing that, we'll ask the payee to reissue the check. It's no hurry for £19.

kenshaz

Well I have cheques paid to me and I put them into our joint account ,since when has this new bit of nanny state legislation been in force.My salary is paid to me and that goes into our joint account.
I have been doing this for years,is it like the mobile phone law everyone ignores it