Presentation on theme: "Checking Accounts and Other Banking Services"— Presentation transcript:
1 Checking Accounts and Other Banking Services Chapter 9Lesson 9.1 – Checking AccountsLesson 9.2 – Other Banking Services and Fees
2 Checking AccountsAn account that allows depositors to write checks to make payments.Checking account is also called a “demand deposit”Checks follow a processWhen check goes through this process it becomes a ‘cancelled’ checkCancelled checks should become a part of your record keeping system
3 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.
4 ResponsibilitiesWrite 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.
5 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)
6 Parts of a Check 581 John Doe 123 Main Street Anytown, ST 11111 20 $ Pay to theOrder of$DollarsBank NameCity, StateMemo: |: 08—40—
7 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.
8 Making Deposits Complete a deposit slip (see pg 243) Date Cash Checks (use ABA check number)TotalSign deposit slip if you are asking for cash backWill get a receipt from the bank
9 Endorsing Checks Blank Endorsement Special Endorsement The signature of the payee written exactly as it appears on the front of the checkWhomever possesses the check may cash itSpecial EndorsementEndorsement in fullTransfers the right to cash the checkRestrictive EndorsementRestricts the use of a check
10 Checkbook Register Be sure to record all check and deposits right away Two line recordBe sure to record: check #, date, to, for, amount and figure balance
11 Reconciling Your Account Bank will send out a monthly statementLists: all withdrawals and deposits, service charges, and interest earnedForm is usually on the back of the bank statementTells you exactly what you have to do
12 Types of Checking Accounts Joint AccountsOpened by two or more peopleSpecial AccountsSomeone who only writes a few checksFees based on usageStandard AccountsUsually has a set monthly service feeInterest-Bearing AccountsShare AccountsOffered by credit unions