Meaning of a Personal Check

• A personal check is a draft used to draw funds from the account holder's personal checking account. When a personal check is presented for payment at the bank, the bank has a duty to honor the check when the account holder has sufficient funds in the checking account.
  
  

Personal Checking Account

• A checking account is a bank account that is used to draw funds that are payable when the check is presented for payment to the bank. The account holder deposits money into the checking account, and money can be withdrawn from the account. A personal checking account is distinct from a business account. The funds in a personal checking account are generally separate from any business funds. Most account holders use their personal checking accounts for personal matters.
  
  

Account Holder's Bank

• If the bank decides to honor a check when the account has insufficient funds, the bank may charge the account holder's checking account for the full amount of the personal check plus any overdraft fees according to the bank's rules. Furthermore, if an account holder has written a personal check and desires to prevent payment of the check, the account holder can order the bank to stop payment on the check. Most banks have procedures to prevent the payment of a check.
  
  

Bottom Numbers

• The bottom numbers on the personal check identify the bank routing number and the account holder's account number.
  
  

Account Holder

• Although the bottom numbers on a personal check include the account holder's account number, the name and address of the account holder is usually at the top left corner of the check. The account holder is usually authorized to write the checks.
  
  

Check Date

• The date on the check establishes when the check should be presented for payment at the account holder's bank. Banks typically will not honor a check prior to actual date on the check.
  
  

Check Amount and Payee

• The payee is the person to whom the check is given, and the account holder gives the payee authority to withdraw a certain amount of funds from the checking account. The payee is not authorized to withdraw funds in addition to the amount stated on the check.