© South-Western Educational Publishing Chapter 9 Checking Accounts and Other Banking Services  Checking Accounts  Other Banking Services and Fees

GOALS © South-Western Educational Publishing Lesson 9.1 Checking Accounts  Describe the purpose of a checking account.  Discuss how to prepare banking forms.  Be able to distinguish between different types of checking accounts.

© South-Western Educational Publishing Checking Account Vocab  Check  Demand deposit  Canceled check  Overdraft  Floating a check

© South-Western Educational Publishing Opening a Checking Account  Signature authorization form  Initial deposit

© South-Western Educational Publishing Parts of a Check ARDYS JOHNSON Phone: West 18 th Avenue Chicago, IL SKY CENTRAL BANK Chicago, Illinois PAY TO THE ORDER OF DOLLARS For Classroom Use Only MEMO DATE $ July 1, 20-- Food Mart Thirty-six and 12/100 groceries Ardys Johnson

© South-Western Educational Publishing Using Your Checking Account  Writing checks  Paying bills online  Making deposits  Using a checkbook register

© South-Western Educational Publishing Endorsing Checks  Blank endorsement  Special endorsement  Restrictive endorsement

© South-Western Educational Publishing Types of Checking Accounts  Joint accounts  Special accounts  Standard accounts  Interest-bearing accounts  Share accounts

© South-Western Educational Publishing Other Banking Services  Guaranteed- payment checks  Money orders  Debit cards  Bank credit cards  Automated teller machines  Online banking  Telephone banking  Stop payment orders  Safe deposit boxes  Loans and trusts  Financial services

© South-Western Educational Publishing Bank Fees Examples of bank fees  Loan fee  Trustee fee  Check cashing fee for non-customers  Per-check fee  Maintenance fee  Check printing fee  ATM transaction fee

Different bank accounts  Checking  Demand Deposit  Savings © South-Western Educational Publishing

Transaction Accounts  Demand Deposits- payable on demand whenever the depositor chooses  Checking Account - most common form; offers customers quick access to their money and a convenient way to pay bills or transfer funds to other institutions.

Checking Accounts  Basic- Offer a few simple services for minimal cost  Interest bearing checking- Pay interest on the balance deposited in the account, but usually a minimum balance is required

Time Deposits Less liquid than check deposits Examples include:  Savings Accounts  Money Market deposit accounts  Certificates of Deposit (CDs)

Savings Accounts  Banks usually limit the number of free withdrawals.  Statement Savings Accounts:  Provide a quarterly statement detailing account activity, including fees and interest earned.  Lower interest rates than other time deposits because it is the most liquid

Money Market Deposit Accounts MMDAs offer a higher rate of interest than savings accounts, but they usually require a higher initial deposit to open an account. FDIC insured up to $250,000 Minimum balance usually required # of Transactions may be restricted

Certificates of Deposit  CDs are certificates offered by the bank that guarantee payment of a specified interest rate until a designated date in the future (maturity date).  Higher the amount and longer time until maturity = higher interest rates  Usually higher than money market accounts and savings accounts

Assignment In groups of 3, research the various types of transaction accounts and time deposits offered at a bank in your area. Provide details about each type of account Research should be summarized on a flyer, or brochure.