Though debit and check cards are becoming more popular, many people still use paper checks to conduct business. Knowing how to properly fill out deposit slips and checks is essential to personal and business banking. Though the deposit slip and check may look very similar, they serve very different purposes.
The purpose of a deposit slip and a check are completely opposite. The deposit slip is used to put money into the bank, while the check is used to withdraw money from an account.
Number of Transactions
A check can be used to negotiate only one transaction at the time, that being to withdraw money from your account. A cash withdrawal can be made directly at the bank or funds can be withdrawn electronically for a purchase by submitting the check to a store. A deposit slip will allow the deposit multiple checks and or cash.
The signature line on a check must be filled with the account owner's signature for the check to be used for the withdrawal of funds. A signature on a deposit slip may or may not be required, depending upon the circumstance. If only some of the funds listed on the deposit slip are to be deposited, a signature is required.
Indication of Amount
There are boxes on the check and on the deposit slip for the purpose of indicating the amount to be withdrawn or deposited. However, on the check, it is required that the amount of withdrawal is written out in words.
Number of Parties Involved in Transaction
A check is used to supply funds to a place of business or individual in exchange for goods or services. When a deposit slip is used, no other party is involved in the transaction other than the owner of the account.
- Photo Credit Jupiterimages/Comstock/Getty Images Jupiterimages/Photos.com/Getty Images Ryan McVay/Photodisc/Getty Images
What Is the Difference Between Direct Deposits & Wire Transfers?
Both wire transfers and direct deposits allow the convenient transfer of funds from an originator to a beneficiary. A wire transfer is...