1. Lesson 2: Introduction to Banking

2. Objectives: Identify types of accounts Evaluate banking transactions for accuracy and completeness Determine uses for online banking

3. Checking Accounts Easy access to your funds. Write checks or use debit cards. Different types of accounts with different options or packages. Evaluate the different accounts’ terms and benefits before deciding. Many banks will require a minimum deposit of $50 - $100 to open a checking account.

4. Savings Accounts A place for you to save money. You can make deposits and withdrawals. Banks typically pay interest on money in savings accounts. Interest is calculated as a percentage of what you have saved. Minimum deposit required to open account. May charge fee if balance falls below specified minimum.

5. Money Market Accounts Similar to a savings account. Requires a higher balance to avoid monthly fees. Interest rates vary regularly based on money markets. Limited check writing privileges. Banks offer customers money market accounts in order to have the funds to insure money market transactions.

6. Certificate of Deposit (CD) Allows you to invest your money with a set interest rate for a pre-set period of time. Higher interest rate, as money is inaccessible. Life of a certificate ranges from a few months to several years. Early withdrawal carries substantial penalty.

7. Writing a Check Name must be displayed. Address and telephone numbers are optional. You must write the date in this field. Each check has a unique number. They will all be in chronological order. The name of the person or company to whom the check is being written. The amount of the check, written in currency format. The amount of the check, written in words. The name of the bank on which the check is drawn. A description of the nature of the payment. This field is optional. Your signature. The nine- digit routing number. The unique account number. The check number, displayed again in 4 digit format.

8. Cashing a Check If a check is written to you, it must be signed, or endorsed, before you are able to cash it.

9. Check Your Understanding What is missing from these checks?

10. Check Your Understanding What is missing from these checks?

11. Check Your Understanding What is missing from these checks?

12. Check Your Understanding What is missing from these checks?

13. Check Register A check register is extremely important for you to be able to balance your account. In order to balance your account, you must record transactions in the register and then check your register against your account statement. Being overdrawn means that you have spent more money than you have available in your account. The bank and anyone to whom you have submitted payment is able to charge you NSF, or non-sufficient funds, fees. These are also known as overdraft fees. + +

14. Check Register + +

15. 200.00 Micah wrote a check (#1034) today for $132.50 to B&T Wireless for his monthly services. 1034 XX/XXB&T Phone bill 132 50-132.50 67.50 Check Your Understanding

16. Account Statements Your account statement allows you to view how you have managed your money for the month. The statement will reflect a summary of all transactions, and a breakdown of every transaction within the period. You can use this statement to balance your account against the information you have in your register. This is the easiest way to detect any errors that may occur. When you set up a bank account, you will receive an account statement every month.

17. Deposit Slips Depositing money means you are adding money to your bank account. Even though many transactions can be handled electronically, such as depositing a check, you still have to physically deposit cash.

18. Deposit Slips Pre-printed deposit slip: Usually comes with checks and check register when opening an account. Blank deposit slip: All information must be added manually. All account information is pre-printed. You must enter the date and all cash and checks being deposited.

19. Check Your Understanding Wanda is depositing a check for $400, but she would like $100 back in cash. Wanda L. Hess 78946102457 3/6/20XX 400 00 100 00 300 00 Wanda L Hess

20. Check Your Understanding Jerry is depositing $150 in cash, a check for $75, and a check for $300. Jerry Detweiler 7934618745 8/7/20XX 150 00 75 00 300 00 525 00

21. Withdrawal Slips When visiting a bank, you need to complete a withdrawal slip in order to withdraw funds from your account.

22. Check Your Understanding Are these withdrawal slips complete? 6318567954 1,000.00 One thousand and ------------------------------------ 00/100 John Delgado9/12/20XX John Delgado 6318567954 Five hundred and ------------------------------------ 00/100 John Delgado9/12/20XX John Delgado YES NO

23. Online Banking Here are some of the tasks you can complete either online or through mobile banking: Check account balances View transactions Transfer money Deposit checks Pay bills Manage account information Manage account preferences Contact the bank

24. Summary: Identified types of accounts Evaluated banking transactions for accuracy and completeness Determined uses for online banking