1. Checking Accounts Chapter 9

2. Basics Check: ▫Written order to bank to pay the amount stated to the person or business named on it. Demand deposit: ▫Money may be withdrawn at any time.

3. Basics Process: ▫You write a check. ▫The payee cashes your check. ▫The bank that cashed the check returns it to your bank. ▫The bank withdraws money from your account and sends it to the bank that cashed the check. ▫Your bank then stamps the back of your check, indicating that it has a check that has cleared your account. Canceled Check: a check that has cleared your accounts. Can be used as proof of payment.

4. Advantages of Checking Account 1.Provides a convenient way to pay bills. 2.Safer than using cash, especially when making major purchases. 3.Built-in record keeping system that you can use to track expenses and create budgets. 4.Gives you access to other bank services, such as loans, online banking, and 24-hour access to your money through ATMs.

5. Opening a Checking Account You must fill out and sign a signature authorization form. Provides an official signature that the bank can compare to the signature you write on the check.

6. Parts of Check Check Number ABA Number Name and Address of Maker Date Payee Numeric Amount Written Amount Signature Account and Routing Numbers Memo

7. Writing Checks Always use pen (blue or black). Write legibly. Sign name the same as on signature card. Avoid mistakes. (VOID) Make sure you have adequate funds.

8. Why Paying Bills Online? Safer than sending checks in mail. Faster than mailing. Convenient Saves money for postage and costs of checks.

9. Paying Bills Online Choice #1Choice #2 Can register at website of business to which you will be making payments. You can authorize payments. Can pay bills from your own account. Register at your bank’s website. Some banks charged monthly fee.

10. Making Deposits (use Internet) 1.Date of transaction. 2.Cash Section: write amount of $ you are depositing 3.Checks Section: write amount of check along with ABA number. 4.Total the currency, coin, and check amounts. Write figure on “subtotal” line. 5.If you wish to receive some cash, complete “Less Cash Received” line 6.Complete “Net Deposit” 7.If you receive some cash, “Sign Here for Less Cash Received” 8.The teller will give you copy of deposit slip or receipt.

11. Checkbook Register Definition: booklet used to record checking account transactions.

12. Reconciling Your Account Bank Reconciliation: the process of matching your checkbook register with the bank statement

13. Endorsing Checks 1.Blank Endorsement  Only the signature of the payee 2.Special Endorsement Transfers the right to cash the check to someone else. “Pay to the order of…” 3.Restrictive Endorsement Limits to the use of the check. “For deposit only…”

14. Types of Checking Accounts 1.Joint Accounts  Opened by 2 or more people.  Any person who signs the account has the right to the amount deposits. 2.Interest Bearing Accounts Can earn interest. Must maintain a minimum balance

15. Banking Services Money Orders Debit Cards Bank Credit Cards Overdraft Protection ATMs Online and Telephone Banking Stop Payment Orders Safety Deposit Boxes Loans and Trusts Notary Public Financial Services

16. Banking Fees Monthly Service Fees Overdraft Fees NSF check charges ATM fees Safe deposit box fees