Checking Account in the Philippines — How to Avoid Problems
A checking account has many good uses, and for business people, it is necessary. But if you don’t handle it well, it can lead you to financial and legal troubles and much stress.
Someone asked about crossed and open checks, so I’ll describe them first before going to the main topic.
CROSSED CHECK: Yong may 2 parallel slant lines sa left top corner ng check. This means this check CAN NOT BE ENCASHED over the counter. Ide-deposit siya to the account of the person whose name is on the check.
Yong ibang issuer, nag-i-stamp ng FOR DEPOSIT ONLY or FOR PAYEE ACCOUNT ONLY sa check.
Merong company-issued checks na pre-printed at naka-design na sa check yong FOR PAYEE ACCOUNT only.
OPEN CHECK or UNCROSSED CHECK: Walang 2 parallel slant lines, at walang FOR DEPOSIT ONLY or FOR PAYEE ACCOUNT ONLY. This can be encashed immediately over the counter on date of check at the drawee bank branch (yong bank branch ng nag-issue ng check).
To avoid troubles and stress, don’t do the following:
1. Huwag mong ipagkalat na meron kang checking account. You are opening yourself up for abuse by friends, neighbors, officemates and relatives na mahilig manghiram pero hindi responsable.
2. Iwasan ang pag-issue ng check na Pay to CASH. Ginagamit lang ito sa maramihang issue ng checks for awards, rewards, etc. Kapag merong name ang check, meron kang proof of payment at mas accurate ang financial records mo.
3. Do not issue a check if there’s no money or not enough money in your account to cover check encashment.
Huwag mong isiping dahil crossed check ay safe pa…dahil clearing rules have changed. You can no longer fund your account upon presentation of the check ( for stricter banks). Penalty agad.
Merong banks that allow more time, but funding should be done within the day of check presentation. Some banks also offer options, such as automatic transfer arrangement or electronic funding. Before 7:30 am the next day, banks are required by BSP to return unfunded checks. Pag returned check, surely kasabay ang penalty.
Eh kung open check pa at dinala agad sa bank mo for encashment, may penalty ka agad.
Penalties for unfunded checks and returned checks are costly. Hindi na lang 2k ngayon. Iba-iba rin ang penalty policies — puedeng merong penalty imposed by the drawee bank and another by the payee bank.
So, basahin mo yong check clearing policies ng bank mo, at kung magkano ang penalties, at kung ano yong mga penalties.
4. Do not issue post-dated checks if you are not sure where money will come from, especially if these are big amounts.
Payees can use the checks to sue you for violating the Bouncing Check Law or for committing Estafa.
Usually, car dealers, real estate developers, housing loan providers, and rental property owners require post-dated checks. Ask these people if you have the option, in case of some problems in the future, to notify them and request for a grace period before they deposit the check, so you can avoid the costly penalties.
5. Do not bring your checkbook anywhere you go.
Parang credit card din ang checkbook. Kapag nawala, puedeng gamitin ng iba lalo na kung meron kang pirma doon na matutularan nila.
6. Do not issue a signed blank check. Puedeng malayong malaking amount ang isusulat ng binigyan mo.
Sulatan mo muna ang date, name, and amount bago mo pirmahan.
7. In writing the amount in words, huwag kang mag-iwan ng malaking space between sa printed na “PESOS” at yong amount na isusulat mo, para nang sa ganon, wala nang maidagdag pa ng mga gustong manloko.
Puede kasing gawing “Twenty Nine Thousand Pesos” yong “Nine Thousand Pesos” kapag merong space.
Ganon din sa amount in number, puedeng 29,000 yong 9,000 lang. Dapat konting-konti ang space between the Peso sign and the amount. Yong iba, gumagamit ng dash o asterisk before and after the amount in number and amount in words.
8. Don’t forget your maintaining balance.
Kung nahatak pati maintaining balance to fund a check, remember to replace it ASAP. Dagdagan mo pa para mahila pataas yong monthly average daily balance at umabot sa required balance.
9. Punuin mo ng XXXXX ang check na merong error para hindi magamit ng iba.
10. Gamitin mo yong bookkeeping pages ng checkbook mo. Fill-up the DATE, CHECK NUMBER, PARTICULARS, DEPOSIT WITHDRAWAL, BALANCE after you write every check para ma-check mo ang balance mo at ma-monitor mo ang pera mo. Mache-check mo rin kung merong nawawalang check.
1. If your bank has Internet banking, enroll your account para mas madaling mag-monitor ng account. Madali ring mag-transfer ng money from your savings account to your checking account.
2. Keep the phone number of your bank branch, so you can call if you have questions.
3. Know your bank’s other branches and their locations, so you know where to deposit money in case you’re somewhere else.
Checking account in the Philippines