Judith Fe Christina B.

Aligno

BSA II

Kinds of checks

1. Government check or warrant

Instruments payable on demand and drawn by the government, or on the government
(i.e. Treasurer of the United States) are generally regarded as government checks.
Warrants issued by a state or local government or governmental agencies are also
treated as checks if they are payable on demand.
2. Cashier check
A cashier's check is simply a bill of exchange or a draft drawn by a bank on itself. In
many instances, cashier's checks are purchased by a customer of the issuing bank to be
used for a payment when a check signed by an authorized representative of the bank is
desired. The purchaser is not a party to the cashier's check unless he is named as payee
or he adds his own signature or endorsement to the instrument.
3. Teller check or bank draft
A teller's check is a draft drawn by a bank on another bank or payable at or through a
bank. A "teller's check" is equivalent to the term "bank draft." A similar term is "banker's
check," defined as a check where the drawer is a banker, or the duly authorized agent of
a bank, and the check is drawn on funds either in the bank where he is an officer or
agent or in a correspondent bank where his own bank has credit.
4. Certified check
A certified check is a check accepted by the bank on which it is drawn. Acceptance may
be made by the bank's signed agreement to pay the check as presented or by a writing
on the check that indicates that the check is certified.
5. Traveler's check
A traveler's check is a device intended to provide an instrument with the marketability
of cash and the safety of a bank draft. This procedure makes it relatively easy to cash
such an instrument where the owner-purchaser is not known to the cashing party and
the purchaser is protected against loss of the instrument if it has not been
countersigned.
6. Bank money orders and personal money order
There are three parties to a money order: the remitter, the payee, and the drawee.
Another form of check now used and sold by banks, merchants, and others is the
personal money order, or register check. Whereas bank money orders are often signed
on behalf of the issuing bank, personal money orders generally have a resemblance to
ordinary checks and are issued with unfilled blanks for the name of the payee, the date,
and the signature of the purchaser. Only the amount is filled out at the time of issue and
that is often done by check writer impression.
7. Personal Check
A personal check is the means for the checking account holder to pay the money. Most
banks allow you to write as many checks as you want per month without a fee, but
some banks set a limit on the number of checks per month and charge a fee if you
exceed it.
8. Business Check
Business owners can open business checking account and issue business checks.
Business checks are similar to personal checks. The account owner pays for supplies,
business expenses and payroll with business checks. Most banks charge monthly fees
for business checking accounts. They can also limit the number of checks the owner can
write per month.
9. Postdated Check
A check dated for payment at some future date.
10. Stale Checks
A check, other than a certified check, that is presented for payment more than six
months after its date.
11. Overdraft
A check written on a checking account in which there are insufficient funds to cover the
check.
12. Gift check
This is another banking instrument introduced for gifting money to the loved ones
instead of hard cash.
13. At par check
With the computerization and networking of bank branches with its headquarters, a
variation to the local check has become common place in the name of at par check. At
par check is a check which is accepted at par at all its branches across the country.
Unlike local check it can be present across the country without attracting additional
banking charges.
14. Local check
A local check is a type of check which is valid in the given city and a given branch in
which the issuer has an account and to which it is connected.
15. Pay yourself check
The account holder issues this type of crossed check to the bank asking the bank deduct
money from his account into banks own account for the purpose buying banking
products like drafts, pay orders, fixed deposit receipts or for depositing money into
other accounts held by him like recurring deposits and loan accounts.
16. Crossed check or an account payee check
It is written in the same as that of bearer check but issuer specifically specifies it as
account payee on the left hand top corner or simply crosses it twice with two parallel
lines on the right hand top corner. The bearer of the check presenting it to the bank
 should have an account in the branch to which the written sum is deposited. It is safest
type of checks.
17. Open check or bearer cheque:
The issuer of the check would just fill the name of the person to whom the check is
issued, writes the amount and attaches his signature and nothing else. This type of
issuing a check is also called bearer type check also known as open check or uncrossed
check. The check is negotiable from the date of issue to three months. The issued check
turns stale after the completion of three months. It has to be revalidated before
presenting to the bank.
18. Managers Check
A Manager's Check (MC) is a check issued by the bank, payable to a payee as indicated
by the person who buys the MC. It is often used in situations when the beneficiary does
not accept cash or personal checks. Demand Draft.
19. Bounced Check
'Bounced Check' a slang word for a check that cannot be processed because the writer
has insufficient funds. A bounced check will often be returned to the writer along with a
penalty fee for non-sufficient funds.
20. NSF Check
A check that a bank refuses to honor because there is not enough money in the payer's
checking account to cover the amount of the check.
21. Order Check
Order checks are the checks which are withdrawn for the payee (the check withdrawn
for whose person). Before withdrawn to that payee, banks cross check the identity of
the payee.
22. Account Payee Check
When two parallel lines along with a crossed made on the check and the word
ACCOUNT PAYEE written between these lines, then that types of checks are called
account payee checks. The payment of the account payee check taken place on the
person, firm or company on which name the check is issued.
23. Anti-dated check
If any check is issued for the upcoming withdrawn date but is withdrawn before the
date printed on the check, then that type of checks are called anti-dated checks.
24. Outstation checks
If a given citys local cheque is presented elsewhere it becomes an outstation cheque
and may attract some nominal but fixed banking charges.
25. Pay to Bearer
Any check or draft that can be transferred to the holder by delivery without having to be
endorsed. As the name implies, "pay to bearer" refers to any negotiable instrument that
is simply paid to the bearer without requiring proof of identity. Pay-to-bearer
instruments are not registered in the name of a specific owner and will pay to whoever
bears them.
26. Mutilated Cheque
In case a cheque is torn into two or more pieces and presented for payment, such
cheque is called Mutilated Cheque. The bank will not make payment against such a
cheque without getting confirmation of the drawer. But is a cheque is torn at the
corners and no material fact is erased or cancelled, the bank may make payment against
such a cheque.
27. Payment vouchers
In the US some public assistance programs such as the Special Supplemental Nutrition
Program for Women, Infants and Children, or Aid to Families with Dependent Children
make vouchers available to their beneficiaries, which are good up to a certain monetary
amount for purchase of grocery items deemed eligible under the particular programme.
The voucher can be deposited like any other cheque by a participating supermarket or
other approved business.
28. Oversized cheques
Oversized cheques are often used in public events such as donating money to charity or
giving out prizes such as Publishers Clearing House. The cheques are commonly 18 by 36
inches (46 cm 91 cm) in size, however, according to the Guinness Book of World
Records, the largest ever is 12 by 25 metres (39 ft 82 ft). Regardless of the size, such
cheques can still be redeemed for their cash value as long as they have the same parts
as a normal cheque, although usually the oversized cheque is kept as a souvenir and a
normal cheque is provided. A bank may levy additional charges for clearing an oversized
cheque.
29. Payroll cheque
A cheque used to pay wages may be referred to as a payroll cheque. Even when the use
of cheques for paying wages and salaries became rare, the vocabulary "pay cheque" still
remained commonly used to describe the payment of wages and salaries. Payroll
cheques issued by the military to soldiers, or by some other government entities to their
employees, beneficiants, and creditors, are referred to as warrants.
30. Order Cheque
An order cheque is one which is payable to a particular person. In such a cheque the
word bearer may be cut out or cancelled and the word order may be written. The
payee can transfer an order cheque to someone else by signing his or her name on the
back of it.
References

Kinds of Bank Checks. (n.d.). Retrieved January 25, 2016, from http://www.legalmatch.com/law-
library/article/kinds-of-bank-checks.html

The Different Kinds of Checks. (n.d.). Retrieved January 25, 2016, from
http://www.geeksonfinance.com/list_7488029_different-kinds-checks.html

What are the different types of cheques. (n.d.). Retrieved January 25, 2016, from
http://readanddigest.com/what-are-the-different-types-of-cheques/

What is a bounced check. (n.d). Retrieved January 25, 2016, from

www.investopedia.com/terms/b/bouncedcheck.asp

History of Philippine banking (and kinds of checks). (n.d.). Retrieved from January 25, 2016, from
http://www.slideshare.net/jumpstop33/history-of-philippine-banking-checks

Branch Banking. (n.d.). Retrieved from January 25, 2016, from

http://www.robinsonsbank.com.ph/branchbanking.do?item_id=13545

NSF check financial definition of NSF check. (n.d.). Retrieved from January 25, 2016, from financial-
dictionary.thefreedictionary.com/NSF+check

Various Types of Cheques. (n.d.). Retrieved from January 25, 2016,

www.bankexamstoday.com/2015/01/various-types-of-cheques.html
Judith Fe Christina B. Aligno

BSA II

Credit Instrument: Document that serves as an evidence of debt, such as a promissory note or an IOU.

Promissory Note: A financial instrument that contains a written promise by one party to pay another
party a definite sum of money either on demand or at a specified future date.

Check: A draft drawn by a depositor (the drawer) ordering a bank or other financial institution (the
drawee) to pay a sum certain of money on demand to, or to the order of, a third person (the payee).
The drawer is liable for ensuring that sufficient funds are in his account to cover the check.

Bank Draft: A bank draft is a payment on behalf of the payer, which is guaranteed by the issuing bank. A
draft is used when the payee wants a highly secure form of payment.

Bonds: A bond is a debt investment in which an investor loans money to an entity (typically corporate or
governmental) which borrows the funds for a defined period of time at a variable or fixed interest rate.

Money Market: A segment of the financial market in which financial instruments with high liquidity and
very short maturities are traded. The money market is used by participants as a means for borrowing
and lending in the short term, from several days to just under a year.

Stocks: A type of security that signifies ownership in a corporation and represents a claim on part of the
corporation's assets and earnings. There are two main types of stock: common and preferred.

References

Bank Draft Definition. (n.d.). Retrieved from January 25, 2016,

http://www.accountingtools.com/definition-bank-draft

Bond Definition. (n.d). Retrieved from January 25, 2016, www.investopedia.com/terms/b/bond.asp

Stock Definition. (n.d.). Retrieved from January 25, 2016, www.investopedia.com/terms/s/stock.asp

Promissory Note Definition. (n.d.). Retrieved from January 25, 2016,

www.investopedia.com/terms/p/promissorynote.asp

Money Market Definition. (n.d.). Retrieved from January 25, 2016,

www.investopedia.com/terms/m/moneymarket.asp