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Home >> My Bank Said ...
Receiving Cash from "For Deposit Only" Checks
Once a month I deposit several checks into the joint account that my wife and I have. Some of the checks are made payable to me and some are made payable to her. We endorse each check properly and add "for deposit only" after it.
When I deposit the checks, I always include a "less cash" amount on the deposit slip. I have been doing this for twenty years, but now my bank says that they can't give me any cash back because the checks are endorsed "for deposit only". I put the restriction on the checks in case they are lost or stolen before I get them to the bank, but not to prevent access to our money. Who is right? Is there any way that I can both include the "for deposit only" restriction and still get funds from the "less cash" on the deposit slip?
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 One can argue whether "for deposit only" shuts off your ability to do "less cash deposits." Whether it should or should not, your bank gets to decide on its own rules when it comes to accepting checks for deposit.
Ask the bank to allow you to put the restrictive "for deposit only" endorsements on most of the checks, and use blank endorsements (just the payee's signature) or special endorsements ("pay to [name of bank], signature) on enough of the checks to allow for the amount of cash you want back. If you use the blank endorsements, you'll want to leave those checks unendorsed until you get to the bank, just to be on the safe side.
If the bank won't allow cash back from your deposits unless none of the checks has the restrictive endorsement, deposit all of the checks with the restrictive endorsements you're used to, and draw a check payable to yourself to cash after the deposit is made.
Published on BankingQuestions.com 4/17/08
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