What Is the Definition of a Personal Bank Check?

With the implementation of Check 21 procedures (a new law that states that banks can process electronic payments), personal checks are fast becoming obsolete. However, physical personal checks are still useful in some cases, such as when the account holder has to write a check to his or herself at another bank.

Identification

A personal bank check is a piece of paper that acts as a mini-contract between two people (payer and payee).

Funds

A personal check is drawn against available funds in a checking account.

Retail Stores

Many retail stores will not accept a personal bank check for payment, because they cannot be assured that it will clear.

Certified Checks

You can get a personal certified bank check from your bank for a fee. This is a guarantee to the payee that the check will clear.

Warning

If funds are not available when a personal check is presented to the payer's bank, the check will bounce, the funds will be taken back from the payee, and the account holder will be charged expensive overdraft fees.

Resources

• More About the Check 21 Act