1. Checking Accounts and Other Bank Services

2. Purpose of a Checking Account It allows the depositor to pay a stated amount (Check) to a person or business without having to use cash. It allows you to withdraw funds at any time and is known as demand deposit. It provides convenience. It provides a system of keep accurate records of your finances. The canceled check allows for proof of purchase or payment if a dispute arises.

3. Advantages of a Checking Account 1.It provides a convenient way to pay your bills. 2.It is often safer than using cash. It is a permanent record. 3.It has a built in record keeping system that allows you to track expenses which helps you to budget. 4.A checking account allows you to access to other services such as loans and ATM services.

4. Checking Account Responsibilities You must maintain sufficient funds in your account. Overdrafts result in penalties. You can not purposely float a check. This is illegal in most states.

5. Opening a Checking Accounts Signature Authorization Form It is a form in which you provide your actual signature. This bank uses this form to compare it with the signature you write on your check. This is done to prevent others from forging checks using your name. Start up Fees Most banks require that you have an initial balance of a least $50.00. Most banks also require that you maintain a minimum balance in your account.

6. Using Your Checking Account Writing Checks Always use Pen Write legibly. Make your numbers clear and distinct without spaces before, between or after them Avoid mistakes. When you make a mistake void the check. Be sure you have adequate funds before writing the check.

7. Using Your Checking Account Making Deposits Write the date of the transaction. In the cash section write the total amount of currency. In the check section write the check number and amount. Subtract any cash you want back from the total amount. Keep copies of your deposit slips.

8. Using A Checkbook Register Checkbook Register A booklet used to record checkbook transactions. Steps to using the Register 1.Record the Current Balance at the top of the register. 2.As soon as you write a check or make a deposit, record the transaction in the register. 3.Be sure to write the check number, date, payee and subtract the amount in the register. 4.Make sure to record deposits in proper column and add to balance.

9. Reconciling Your Checking Account Reconciliation The process of matching your check register with the bank statement. Steps to Reconciliation 1.Write the ending balance shown on the bank statement. 2.List any deposits that do not appear on the statement and add them to the ending balance to get a subtotal. 3.List any checks or withdrawals or checks not shown on the statement. Subtract them from the subtotal to get a final balance. 4.The balance should be the same as your checkbook register.

10. Endorsing Checks Check Endorsement A check can not be cashed until the back of the check has been endorsed with the same name as on the front of the check. Types of Endorsements Blank Endorsement Special Endorsement Restrictive Endorsement

11. Types of Checking Accounts Joint Accounts A checking account opened by two or more people. Most commonly used by married couples. It is also known as a survivorship account because the surviving member has rights to all the money left in the account.

12. Types of Checking Accounts Special Accounts This is setup for customers who write a small number of checks each month. Services charges are charged at a flat rate. Some banks assess a small or no fee. Standard Accounts It has a set monthly service fee of between $5 and $12 dollars but not per check fee.

13. Types of Checking Accounts Interest-Bearing Accounts This is a checking account that earns interest. You cannot go below a minimum average set by the bank. A fee is charged if it drops below the amount. Share Accounts These are checking accounts with low or no average daily balance requirements and no service fees. This is often offered through a credit union.

14. Other Banking Services Guaranteed-Payment Checks The check guarantees payment. Examples of this include a certified check which the bank stamps before being presented to the payee, and cashiers check which is a check written by the bank. Money Orders It is like a check but it can never bounce. You can also purchase these at the post office or from local businesses.

15. Other Banking Services Debit Cards They allow immediate deductions from your checking account for withdrawals or to pay for purchases. Bank Credit Cards You can apply for a Visa or MasterCard credit card with a bank. You are borrowing money. Online and Telephone Banking You can access your account from a computer or telephone. After entering a password you can complete common bank transactions.

16. Other Banking Services Stop Payment Order A request that a bank not cash a specific check. Safe Deposit Boxes It is used to store important documents such as birth certificates, marriage and death certificates, stocks and bonds. Loans and Trusts Banks allow you to make loans for cars, homes, vacations, and others. The bank will act as a trustee managing your account in case of a death.

17. Other Banking Services Banking Fees Banks charge fees to cover operating costs. It charges a fee to act as a trustee and it also charges a fee to non- customers. The bank may refuse to cash a check if you are not a member of that bank.