You cannot deposit an FBO check into your personal bank account, even if your name is on it
An FBO check — "for the benefit of" — is made out to two parties: you and another person or entity. The check belongs to both of you legally, which means the bank will not let you deposit it alone. Your bank requires both payees to endorse it, and most will not process it into a personal account at all.
The most common FBO checks are insurance payouts (made to you and your mortgage lender, or you and a contractor), security deposit refunds (made to you and a landlord), or settlement payments (made to you and your attorney). In each case, the second party has a legal claim to part or all of the money, and the check is designed to make sure that claim is honored.
Trying to deposit an FBO check without the co-payee's signature is check fraud. Banks are trained to catch this, and if you succeed, the bank can reverse the deposit, freeze your account, and report you to law enforcement. The consequences are not worth the risk.
Key Takeaways
- An FBO check requires both payees to sign the back before any bank will deposit it.
- If you forge the second signature or try to deposit it alone, the bank will likely catch it and can report you for fraud.
- The second payee may be may have access to to part of the money, so the check is written that way to protect them.
- Your options are to get the co-payee to sign, ask the issuer to rewrite the check in one name only, or use a joint account if you and the co-payee both have one.
How FBO checks work at the bank
When you bring an FBO check to the teller, the bank's deposit system flags it because two names appear on the "pay to the order of" line. The teller will ask you to have both payees sign the back of the check. Some banks require both signatures to be present in person; others will accept a mailed signature if the second payee sends a signed endorsement separately.
Once both payees have signed, the bank deposits the money into whichever account you specify — usually yours. The bank does not split the funds or hold them in escrow. That is a civil matter between you and the co-payee. The bank's only job is to make sure both parties agreed to the deposit.
If the second payee is a business (like a mortgage lender or contractor), they may have already signed the check before it reached you. In that case, only your signature is needed. Check the back of the check before you go to the bank — if there is already a signature there, you are halfway done.
Getting the co-payee to sign
If the second payee is a person you know — a landlord, co-owner, or family member — contact them directly and explain that you need their signature on the back of the check to deposit it. Most people will sign without issue once they understand the process. Meet in person if possible, or ask them to sign and return it by mail or email (a photo of the signed check is usually acceptable to the bank).
If the second payee is a business or contractor, call their office and ask who handles check endorsements. Large companies have a specific department that signs checks on behalf of the business. You may need to mail the check to them, wait for it to be signed, and have them mail it back — this can add one to two weeks to the process.
If the co-payee refuses to sign or is unreachable, you have limited options. You cannot deposit the check without them. Your next step is to contact the entity that issued the check (the insurance company, landlord, or settlement administrator) and ask them to issue a new check in your name only. Explain that you cannot locate the co-payee or that they refuse to cooperate. Some issuers will do this; others will not, depending on their policy and the reason the check was written to both parties in the first place.
When the co-payee is a lender or contractor
Insurance checks for property damage are often written to you and your mortgage lender, or to you and a contractor who did the repair work. In these cases, the lender or contractor has a financial interest in the money — the lender wants to make sure the damage is repaired before you spend the money on something else, and the contractor wants assurance they will be paid for the work.
If the check is made out to you and your lender, the lender will sign it once you provide proof that the repairs are complete (usually a contractor's invoice or inspection report). If it is made out to you and a contractor, the contractor will sign once you agree on the work and they have completed it.
In both cases, the co-payee's signature is not a formality — it is a condition of the money being released. Do not try to work around it. If you deposit the check without their signature, the bank will reject it, and you will have wasted time and created a record of the attempt.
Using a joint account as an alternative
If you and the co-payee share a joint bank account, you can deposit the FBO check into that account with only your signature. The bank treats a joint account as owned by both parties, so the check does not need both signatures to be deposited there.
This works well if the co-payee is a spouse, business partner, or family member you trust. It does not work if the co-payee is a lender or contractor — they will not accept a joint account deposit as proof that the money will be used as intended.
If you do not have a joint account with the co-payee and do not want to open one, this option is not available to you.
What happens if you try to deposit it alone
Banks use automated systems to detect unsigned or improperly endorsed checks. When you hand an FBO check to a teller without both signatures, the system flags it when ready. The teller will tell you it cannot be processed and ask you to come back with the co-payee's signature.
If you forge the second signature, the bank may not catch it at the teller window, but it will catch it during the clearing process — when the check is sent to the issuing bank for final payment. The issuing bank will reject the check as fraudulent, and your bank will reverse the deposit, removing the money from your account. Your bank will then report the incident to you and may close your account.
If the bank suspects you forged the signature intentionally, they are required to report it to law enforcement. Check fraud is a felony in most states, and the penalties include fines and jail time. Even if you intended to split the money fairly with the co-payee, forging their signature is still fraud.
Asking the issuer to rewrite the check
If you cannot get the co-payee to sign, or if they are unreachable or deceased, contact the entity that issued the check — the insurance company, settlement administrator, or whoever wrote it. Explain the situation and ask if they will issue a new check in your name only.
Insurance companies will sometimes do this if you provide documentation that the co-payee (usually a contractor or lender) has already been paid or is no longer involved in the claim. Settlement administrators may do it if you provide a court order or written agreement showing that you are may have access to to the full amount. Landlords and other individuals are less likely to agree, but it is worth asking.
The issuer may ask you to sign a form releasing them from liability if the co-payee later claims they were owed money. Be careful about signing anything like this — you could be giving up a legitimate claim or creating a legal problem for yourself. If the co-payee has a real right to the money, signing a release does not erase that right; it just means you are responsible for paying them yourself.
Frequently Asked Questions
Can I just sign the co-payee's name myself?
No. Signing someone else's name on a check is forgery, which is a crime. Banks are trained to detect forged signatures, and if they do not catch it when ready, the issuing bank will catch it during clearing. The deposit will be reversed, and you may face criminal charges.
What if the co-payee is my spouse?
If you are married and file taxes jointly, you may be able to deposit an FBO check with only your signature at some banks, but this varies by institution. Call your bank and ask. If they will not do it, you and your spouse can both go to the bank and sign the check in front of the teller, which usually takes a few minutes.
Can I deposit an FBO check into a business account instead of a personal account?
Only if the business is one of the two payees named on the check. If the check is made out to you and another person, depositing it into a business account does not change the fact that both parties must sign. The bank will still require both signatures before processing it.
How long does it take to get the co-payee to sign?
If the co-payee is a person you know and can reach easily, it may take a few days. If they are a business or contractor, it can take one to two weeks because you may need to mail the check to them and wait for it to be returned. If the co-payee is unreachable, you may need to contact the issuer and ask for a new check, which can take several weeks.
What if the check is old — does it still need both signatures?
Yes. An FBO check requires both signatures no matter how old it is, as long as it has not expired. Most checks are valid for six months from the date written. After that, the bank will not deposit it, and you will need to contact the issuer and ask for a replacement.