When it comes to banking products, there are so many document formalities and processes that it becomes hard for a normal person to understand them fully.
Pay slips, deposit slips, withdrawal slips, L/Cs, notes, cheques, etc., are all banking products and documents that you might need to present for one or another purpose when visiting your bank.
It will require a complete guidebook if we start explaining every document, type, purpose, and how to keep track of everything regarding your bank account.
Therefore, we will try to help you understand the banking documents and terms so that you can easily complete formalities, whether depositing money or withdrawing cash from your account.
In today’s article, we are going to talk about withdrawal slips that bank customers are supposed to fill and submit when visiting a bank to withdraw money. You might wonder if the withdrawal slip is for withdrawing money; what is a cheque for?
We will answer all your questions regarding withdrawal slips, their differences from cheques, deposit slips, etc., and a lot more. So let’s get into it.
What Is Checking Account?
Before we jump to define withdrawal slip, their purpose, and types, let’s start with a checking account.
A checking account is an account for an individual who wants to use checks for paying bills, everyday expenses, etc. With a low minimum balance, anyone can open a basic checking account after meeting bank requirements.
Other checking accounts are interest-bearing, requiring a higher minimum balance, and joint checking accounts that two or more people can collectively open.
Whether you want to withdraw money using checks, ATMs, or withdrawal slips, you must open your checking account with any bank first. Different banks have different requirements and charges for opening and running your account.
In most cases, you will need your identification form, including one with a picture, your SSN(Social Security Number), and money for the first deposit(cash or check).
The information bank might ask from you include your current & permanent address, previous address, type of account(basic, single, joint, etc.), and your signature.
What Is Withdrawal Slip?
Now we will explain the withdrawal slip and everything you need to know about it.
As the name suggests, a withdrawal slip is used to get funds out of your checking account. If an individual wants to withdraw cash from his account at a bank branch, he must fill out a withdrawal form or withdrawal slip.
We can define a withdrawal slip as,
A written request to the bank to pay the account holder a specified sum of money on demand.
There can be other ways to define withdrawal slip as well.
A withdrawal slip is a formal document containing the date, name, account number, withdrawal amount, etc., to request money from the bank. The withdrawal slips are generally used for withdrawing cash from the withdrawer’s personal account, and it’s one of the reasons they are called withdrawal slips.
We can also explain the withdrawal slip as follow:
A bank document that requires you to write the date, account number, and amount of money you want to withdraw from your personal account. Besides, the bank teller must show proof of identification to authorize a withdrawal request.
In general terms, we can say that a withdrawal slip is like a bearer cheque. A bearer cheque is also payable over the counter.
However, the difference between the two is that the bearer check authorizes the cash payment to the check holder. In contrast, a withdrawal slip is for the personal account withdrawal of the account holder.
Difference Between Withdrawal Slip and Deposit Slip
Let’s talk about the difference between a withdrawal slip and a deposit slip.
A withdrawal slip is used to withdraw money from a bank account, and the account holder can only fill it.
Any person can withdraw cash from his personal account by filling the withdrawal slip and furnishing it to the teller at the bank branch. However, identification proof is also necessary to get cash out of your bank account.
On the other hand,
The bank account holders use a deposit slip or pay-in slip when they want to deposit money to their bank account.
When you want to deposit a check in your personal bank account or have the cash deposited, filling out a deposit slip is necessary. It helps keep a record of the deposited money for the bank teller and yourself.
Both are bank documents available at the bank branch, but one is used when you want to take cash out of your bank account, and the other one is used to deposit money in your bank account.
Difference Between Withdrawal Slip And Check
It might trigger your thoughts that if a withdrawal slip is used to take cash out of one’s account, then withdrawal slip and check might be synonymous.
However, we will tell you the reality. First of all, we will talk about the similarities between the two. A withdrawal slip and a bearer check are instruments that are payable over the counter.
Both instruments are used to withdraw money from a bank account.
However, the difference lies in transferability. A bank account owner fills a withdrawal slip when he wants to withdraw money from his account. If an account owner transfers a withdrawal slip to another person, it is not valid for the transaction.
On the other hand, a bearer check is easily transferrable. Anyone can transfer a bearer check to any other person, and the instruments remain valid for the transaction.
However, an order check with the name of the person or institution mentioned to whom money has to be transferred can’t be transferred without crossing by the authorized person.
How To Fill Withdrawal Slip?
How do you fill a withdrawal slip?
What information is needed when you are filling a withdrawal slip to take cash out of your bank account?
Here is the step-by-step guide to filling a withdrawal slip and details of the information required to fill the slip.
Information required includes account number, customer’s name, date, amount, and signature. Besides, identification proof is also required, usually carried out with plastic cards swiped through a specific machine. And here is how to enter the information on the slip:
A withdrawal form is also required, along with the slip. It is also a banking document that can be asked from the bank teller in the bank branch. Here is how to fill out the withdrawal form:
Step 1: Enter the date and account number from which you want to withdraw funds.
Step 2: Add the bank details and branch details in specific sections.
Step 3: Enter the information of the payee.
Step 4: Write down the withdrawal amount in numbers and names.
Step 5: Put your signature in a specified section, write the account holder’s name and furnish it to the bank teller.
Step 6: Get a withdrawal slip from the teller and fill it in accordingly.
FAQs
1. Are Withdrawal Assets Or Liabilities?
If an individual is withdrawing cash or funds from his business, there is no liability increase or decrease. Since the withdrawal is made from the company’s assets, the net impact is seen on business equity.
2. How can I withdraw money without a check?
You can use several ways to withdraw money without a check from your account. The most popular ones to withdraw money from own account are:
- Withdrawal Slip
- ATM(Debit/Credit Card)
- Fingerprint Withdrawal At ATMs
3. How much money can I withdraw through self-check?
If you are in the USA or any other country, there is no specific limit to how much you can withdraw with a self-check.
However, in most cases, the limit is $10,000 for a single time. For amounts higher than $10,000, you have to fulfil federal government reporting requirements.
4. What is meant by withdrawal form?
A withdrawal form is an accompanying document that has to be furnished along with a withdrawal slip when withdrawing funds from a personal account.
Conclusion
We have discussed everything you need to know about withdrawal slips, the procedure of getting money out of your personal account, and the difference between withdrawal slips and other relevant banking documents.
We hope you will be able to understand it when withdrawing money from your bank account next time.
