2. Opening a Checking Account

3. Advantages Types of Checking Accounts Opening an Account Endorsements Recording the Deposit

4. Advantages of a Checking Account Convenience Write checks and pay bills by mail Automatic payments through EFT Safety Risk of losing cash by fire, theft, or carelessness Greater temptation of spending cash Safely send check through mail Insured by FDIC

5. Advantages of a Checking Account Proof of Payment A cancelled check is legal proof of payment Record of Finances Record of deposits and payments will help in managing your money.

6. Types of Checking Accounts Regular Checking No service charge if you maintain balance Interest-Bearing Earns interest, usually requires a minimum Special Charge per check written Service charges Student Accounts, etc.

7. Opening a Checking Account Eligibility requirement – 18 years old Complete a signature card Used to compare with those on your checks Use same signature on card as on checks Other person on your account must also sign (joint account) Make Deposit Fill out a deposit slip (currency, coins, and checks)

8. Making Deposits To make a deposit, you fill out a deposit slip and endorse, or sign, the back of the check.

9. Endorsing Checks Endorse Write name across left end of check – allowed 1 ½ inch space Purposes Allows the recipient to cash, deposit, or transfer it to someone else. Legal evidence that the receiver cashed or transferred the check

10. Types of Endorsements Blank Only the endorser’s name Makes a check payable to anyone who has it. Special “Pay to the order of ______”, then the signature of the endorser. Restrictive “For Deposit Only” then sign

11. Three Types of Endorsements

12. Here are some tips for endorsing a check:  Don’t endorse a check until you’re ready to cash or deposit it.  Write your signature on the left end of the back of the check, on the lines printed for endorsement.  Use only a pen so that your signature cannot be erased. Tips for Endorsing a Check

13. Here are some tips for endorsing a check:  If you are depositing a check by mail, write “For deposit only” directly above your signature.  Sign your name exactly as it is spelled on the front of the check. If your name has been misspelled on the front, the endorsement should include the incorrect spelling, followed by your correct signature. Tips for Endorsing a Check

14. Recording the Deposit When you make a deposit, get a receipt Record deposit in your check register (or check stub).

15. Using the Check Register Using a Check Register Before you write a check, write the date, the check number, the name of the party who will receive the payment, and the exact amount in your check register.

17. A Personal Check Savings Plans and Payment Methods

18. Filling Out a Bank Reconciliation Form Savings Plans and Payment Methods To reconcile your account is to bring your check register into agreement with the bank statement for your account.

19. Filling Out a Bank Reconciliation Form Savings Plans and Payment Methods