Two Names on Cheque but No Joint Account: Understanding the Process

If two names are on a cheque, but there is no joint account, the bank will typically hold the cheque until the account holders confirm the payment arrangement.

This is because the bank needs to verify the payment authority.

The cheque will be returned to the payee if the bank cannot confirm the payment arrangement.

In most cases, the cheque will be held for a certain period, usually 7-14 days, to allow the account holders to resolve the issue.

Your bank has discretion over whether to cash a check with two payees and no joint account. This means they might be willing to cash it, but it's not guaranteed.

A small local credit union may be more relaxed about cashing a check with two payees, especially if they know you personally. But bigger institutions are less likely to deviate from their official policies.

If your bank is hesitant to cash the check, they should be able to give you some options or direct you back to the payer to request a check written in a different format.

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The payer might be able to rewrite the check with just one payee's name or have it written in the "John or Jane" format. This can make it easier to cash the check.

It's worth noting that banks are less likely to deviate from their policies to protect themselves from potential litigation. This means they're trying to minimize their risk, so it's best to ask about their specific policies.

Writing a check to two people can be a bit tricky, especially if you don't have a joint account. If a check is written as payable to John "and" Jane, both payees must endorse the check.

The way the check is written can make a big difference in how it's deposited. For example, if a check is written as payable to John "or" Jane, any one of the payees can endorse the check to have it deposited.

If the wording is ambiguous, such as when the check is written as payable to "John Jane", any one of the payees can deposit the check. This is because the rule follows the same as if the check is written to John "or" Jane.

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You'll encounter the least amount of problems when depositing checks written in the John "or" Jane form. You can just deposit these checks as if they were written only to you.

However, checks written in the John "and" Jane form can be a bit more of a hassle. You'll have to get the other payee to come with you to a branch to verify their signature on the back of the check.

Here are the key rules to keep in mind:

If you don't have a joint account, you can still deposit the check, but you'll need to get the other payee to sign it. Most banks will allow one of the spouses to deposit the check with both signatures, unless the check has an "or" between the names.

Depositing a check with two names on it can be a hassle, especially if you don't have a joint account with the other payee. You might encounter problems if the check is written in the "John and Jane" format, as it requires both payees to endorse the check.

If the check is written in the "John or Jane" format, you can deposit it without any issues, as long as you endorse it. However, if the wording is ambiguous, such as "John Jane", any one of the payees can deposit the check.

You might also encounter issues if the other payee cannot visit a branch to verify their signature. In such cases, you might have to ask the payer to rewrite the check in the "John or Jane" format or split the amount between two checks.

Here's a summary of the potential issues with dual-name checks:

If you deposit a check with two payees and only one endorsing signature, the bank may return the check to you due to the missing signature.

Banks may reject checks with two names on them if the other payee can't be present to verify their signature, which can happen if they're out of the country or have a restraining order against them.

You might have to ask the payer to rewrite the check in the "John or Jane" format, which is less troublesome to deposit. If that's not possible, you could ask the payee to split the amount between two checks so each can deposit the money independently.

If the bank requires a joint account, there's no other way to deal with this rule, making it a hassle to deposit the check. A joint account is essentially a laborious chore, especially when dealing with government-agency checks.

Banks have discretion over whether to cash a check with multiple payees, and some may charge a fee for the transaction. The Consumer Financial Protection Bureau confirms that most banks require all parties to sign a check before it can be cashed or deposited.

You can expect a returned deposit item fee of $12.85 if you try to deposit a check without verifying the signatures of all payees. This is a common issue that can be avoided by getting the other payee to sign the check in front of a bank teller.

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