1. Checking Accounts & Banking Services
Money Management
Checking Accounts & Banking Services
By: Talia Spain

2. Checking Accounts Checking account – check – demand deposit
Cleared – canceled check – substitute check
Convenient way to pay bills
Check is often safer than cash
Built-in record system to track expenses
Bank services – loans, online banking, and 24-hour ATM’s
Electronic check conversion – overdraft – NSF – floating a check

3. Opening A Checking Account
Signature Authorization Form – code word

4. Parts of A Check Always use pen Write legibly
Check Number
Name & Address
Date
ABA Number
Payee
Numeric Amount
Written Amount
Memo
Account & Routing Number
Signature
Always use pen
Write legibly
Sign your name as it appears preprinted on the signature card
Avoid mistakes – VOID if you do
Be certain you have correct funds to cover each check you write

5. Paying Bills Online Safer, convenient and, cheaper
Two forms of payment
Routing number and account number – authorize payments each month or allow automatic payments
Use online banking – PIN
Some banks have limits or fees.

6. Making Deposits & Endorsement
Deposit slip
Date
Amount of currency and coins
If checks – write amount of each check
Total – “Subtotal” line
Receive cash – “Less Cash Received” line
If cash received – “Net Deposit” line
“Sign here for less cash in Teller’s presence”
Received a copy
Bank endorsement – misspelled
Special endorsement
Restrictive endorsement – cannot be found if lost

7. Using A Checkbook Register
Checkbook register – booklet used to record checking account transactions
Bank reconciliation – process of matching your checkbook register with the bank statement

8. Types Of Accounts Joint account – “survivorship account”
Special account – low activity bank accounts, low fees
Standard account – small or no monthly service fee
Interest-bearing account – must stay at or above a minimum balance – “money market account”
Share accounts – least expensive and most convenient

9. Match the terms with the definitions. Some terms may not be used.
KEY TERMS REVIEW
Match the terms with the definitions. Some terms may not be used.
1. A type of bank account from which funds may be withdrawn at any time
2. A booklet used to record checking account transactions
3. An endorsement that transfers the right to cash a check to someone else
4. Writing a check and hoping to cover it with a deposit before it clears
5. A check that has cleared your account
6. A written order to a bank to pay the amount stated to the person or business named on it
7. A check written for more money than your account contains
8. An endorsement that limits the use of a check
9. The process of matching your checkbook register with the bank statement
CHECK YOUR UNDERSTANDING
10. What is an overdraft? Why is it important to avoid it? How can keeping a checkbook register up to date help?
11. Name five types of checking accounts available at many banks.
a. bank reconciliation
b. blank endorsement
c. canceled check
d. check
e. checkbook register
f. demand deposit
g. floating a check
h. overdraft
i. restrictive
endorsement
j. special endorsement
Section Assessment

10. Banking Services & Fees
Full-service bank
Savings
Checking
Credit cards
Safe deposit boxes
Loans
ATM
Online banking
Telephone banking
Certified checks
Cashier’s check
Money orders
Debit cards
FDIC (Federal Deposit Insurance Corporation)

11. Guaranteed-Payment Checks
Certified check – bank fee $ $5.00
Cashier’s check – bank draft
Traveler’s check – safer than other check types
Money orders – do not have a checking account or do not want to use case
Debit card – no credit extended
Bank credit cards – full-service bank – annual fee & interest on payments

12. Overdraft Protection
$100 - $1,000 – overdraft protection – “loan” with high interest rates or flat fee

13. Automated Teller Machines
ATM – cash withdraws with a debit card – PIN

14. Online & Telephone Banking
Computer or telephone access – transfer – pay bills – current balance – cleared checks – deposits entered – 24/7 access
Electronic funds transfer – EFT – transfer from account to account – no delay
Stop-payment orders – lost or stolen checks – fee – over 6 months old cannot be cashed

15. Safe Deposit Boxes
Safe deposit box – store valuables – annual fees $50 - $150 or more – two keys – signature
Loans and trusts – trustee – property management – “special agreement”
Notary public – verifies a person’s identity
Financial services – saving and selling bonds – brokerage service – minimum purchase of $1,000 is required

16. Match the terms with the definitions.
KEY TERMS REVIEW
Match the terms with the definitions.
1. Check forms in specific denominations that are used instead of cash while traveling
2. A request that the bank not honor a specific check
3. A plastic card that deducts money from a checking account almost immediately to pay for purchases
4. A personal check that the bank guarantees to be good
5. A computer-based system that moves money from one account to another without writing a check or using cash
6. A check written by a bank on its own funds
7. A place at your bank available to store valuable items or documents
8. A bank service that covers checks even if you have insufficient funds in your checking account
CHECK YOUR UNDERSTANDING
9. List five banking services that are found at full-service banks.
10. List bank fees charged to customers and to noncustomers for services provided.
a. cashier’s check
b. certified check
c. debit card
d. electronic funds
transfer
e. overdraft protection
f. safe deposit box
g. stop-payment order
h. traveler’s checks
Section Assessment