Checking Accounts and Other Banking Services Chapter 9 Lesson 9.1 – Checking Accounts Lesson 9.2 – Other Banking Services and Fees

Checking Accounts An account that allows depositors to write checks to make payments. Checking account is also called a “demand deposit” Checks follow a process When check goes through this process it becomes a ‘cancelled’ check Cancelled checks should become a part of your record keeping system

Advantages Provides a convenient way to pay your bills. Often safer than using cash. Has a built-in record keeping system that you can use to track expenses and create budgets. Gives you access to other bank services.

Responsibilities Write checks carefully and keep an accurate record or checks and deposits. Verify the accuracy of the bank statement you receive each month. Keep cancelled checks among your permanent records. Maintain sufficient funds in your account to cover all the checks you write.

Opening a Checking Account Fill out and sign a signature authorization form (see page 239) Most banks require a minimum initial deposit (usually $50 or more)

Parts of a Check 581 John Doe 123 Main Street Anytown, ST 11111 20 $ Pay to the Order of $ Dollars Bank Name City, State Memo :071000741|: 08—40—856 0581

Writing Checks Always use a pen. Write legibly. Keep numbers and letters clear and distinct, no extra spaces. Sign your name exactly as it appears on your signature card. Avoid mistakes. If you make a mistake, write “VOID” across the face of the check. Be certain you have deposited adequate funds.

Making Deposits Complete a deposit slip (see pg 243) Date Cash Checks (use ABA check number) Total Sign deposit slip if you are asking for cash back Will get a receipt from the bank

Endorsing Checks Blank Endorsement Special Endorsement The signature of the payee written exactly as it appears on the front of the check Whomever possesses the check may cash it Special Endorsement Endorsement in full Transfers the right to cash the check Restrictive Endorsement Restricts the use of a check

Checkbook Register Be sure to record all check and deposits right away Two line record Be sure to record: check #, date, to, for, amount and figure balance

Reconciling Your Account Bank will send out a monthly statement Lists: all withdrawals and deposits, service charges, and interest earned Form is usually on the back of the bank statement Tells you exactly what you have to do

Types of Checking Accounts Joint Accounts Opened by two or more people Special Accounts Someone who only writes a few checks Fees based on usage Standard Accounts Usually has a set monthly service fee Interest-Bearing Accounts Share Accounts Offered by credit unions

Banking Services Guaranteed Payment Checks Money Orders Debit Cards Certified check Cashier’s check Money Orders Debit Cards Bank Credit Cards Automated Teller Machines Online and Telephone Banking

More Banking Services/Fees Stop Payment Orders Safe Deposit Boxes Loans and Trusts Financial Services Bank Fees