Here’s What Happens When You Receive a Check Made Payable to Two People

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Before you go to the bank to cash or deposit a check made payable to two people, make sure you know what to expect. Find out what you need to know. 

You’ve probably received a check made payable to you and were able to deposit it or cash it at your bank in a matter of seconds. But what happens when you receive a check made payable to two people? The steps you must take to collect the money when it’s written out to multiple people vary.

Here’s what you need to know

It’s not unheard of to receive a two-party check, which is a check written out to two people. This might happen if you’re married or are in a legal partnership with someone, or if there are two people on an account or contract (like an apartment lease) and you’re owed money.

The Consumer Financial Protection Bureau (CFPB) notes that how the check is written will generally determine if it needs to be endorsed by both people or just one person before it can be cashed or deposited at a bank. If you receive a check like this, you’ll want to verify whether the check includes the word “and” or if it includes the word “or” between each name.

If the check is made payable to two people with the word “or” in between each name, generally, either person can cash or deposit the check.If the check is made payable to two people with the word “and” in between the names, most banks will require both people to sign the check before it can be cashed or deposited.

It’s worth noting that banks can set their own policies, so it’s best to contact your bank to verify its policy before you try to deposit or cash the check.

If the check is made payable to two people, with the word “and” in between each name, some banks may require both people be present to deposit or cash the check. Some banks may require that the money be deposited into a joint bank account instead of an individual one. Again, it’s best to verify with your bank to be sure.

Should you open a joint bank account with a partner?

Have you received a check made payable to you and your partner with the word “and” between your names? If your bank requires you to share a joint savings or joint checking account to deposit a check and you don’t have one, you’ll need to consider whether it makes sense to open one. While joint bank accounts work for many partners and spouses, it’s not for everyone.

As a reminder, you should only open a joint savings account or joint checking account with someone you trust. Why? Both individuals will have full access to the funds in the bank account and can make deposits and withdrawals individually without the other person being present. Carefully consider this decision before acting on it.

Don’t want to open a joint bank account? Another option is to ask the person or company issuing the check to reissue it using the word “or” between your names instead of “and” or ask for it to be written out to one of you instead of both of you. Alternatively, you could both sign the check and show up to cash it in person instead of depositing it into a bank account.

For additional money management tips, check out our personal finances resources.

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