Checking Account Check: written order to a bank to pay a specific

Checking Account Check: written order to a bank to pay a specific amount to a person/business (payee) Canceled check: a check that has cleared the bank’s system Overdraft: a check written/using debit card for more money than what is in your account Floating a Check: writing a check when you know you don’t have enough money in your account, hoping a deposit will clear before the check does

Advantages of a Checking Account Convenient for paying bills Safer than cash for major purchases, bills, and mail orders Built-in record keeping system Debit Cards Other services: – Instant loans – Online banking – 24-Hour access (ATMs)

Opening an Account Make initial deposit Can be a joint account Fill out a Signature Authorization Form – Compare signature on card to checks

Factors to Consider when Choosing ATM Fees – Few branches fewer ATMs to access – Charge 2-4 per use when out of network Account Minimum Fee – Fee when balance is below a certain amount Overdraft Fees – Fee when you overdraft – OR a fee to withdraw the over-drafted amount from Savings

Automatic Bill-Pay Can list bills to be paid automatically Allow for lag time Some banks charge fees for this Assigned a PIN (Personal Identification Number)

Types of Checking Accounts An account opened by two or more people “Joint Account” An account where anyone on the account has the right to the amount deposited if the other individual dies “Survivorship Account” These accounts have low (or no) average daily balance requirements and no service fees “Share Account”

These accounts have a set monthly service fee if an average minimum balance is not met but no per check fee “Standard Account” These accounts have flat rate service fees and fees for each check written “Special Account” These accounts offer interest on the amount in the account as long as the amount does not fall below a minimum average “Interest-Bearing Account”

Tips When Writing Checks Use pen & write legibly Do not put extra space between words/numbers Keep signatures consistent Avoid mistakes – if a mistake happens: “VOID” Make sure you have enough money!!

A: Check Number B: Maker (Drawer)’s Name and Address (preprinted) D: Payee C: Date E: Numeric Amount Check #1001 to Wal-Mart on December 1, 2017 for groceries for 25.23 B C December Wal-Mart D F 001 A Twenty-Five 17 25. and Groceries I 1, 23 23 /100 /100 G H you r signature J F: Written Amount G: Memo I: Routing Number (Banks Identification Number) J: Account Number (YOUR bank account number) H: Signature E

Depositing Checks and Cash At the bank with a deposit slip Through an ATM Mobile Banking App – Log in – Take pictures of front/back of check

DEPOSIT SLIPS parents IBHS 50 00 150 00 25 00 December 1, 2017 your signature 225 25 00 00 200 00 Depositing a 50 bill (cash), a check for 150 from your parents, and a check for 25 from IBHS on Dec. 1, 2017. You want to withdrawal 25 cash. STEPS: 1.Enter the Date 2.Enter any Cash you are depositing 3.Enter any Checks you are depositing 4.Total all Deposits 5.Less cash received? (withdrawing any money?) 6.Net Deposit (Amount to actually be deposited) 7.Sign ONLY IF you are withdrawing money (can differ depending on bank)

Endorsing Checks Signing the back of a check so it may be cashed or deposited THREE TYPES Blank Endorsement: signing your name exactly as it is on the front of the check Simon Smith

Special Endorsement: transferring the right to cash the check to someone else Pay to the Order of Sue Jones Simon Smith Restrictive Endorsement: limiting where the check can be deposited – Put bank account # OR Company Name For Deposit only CEFCU Acct. # 12345 Simon Smith

Checkbook Register Booklet used to record all checking account transactions Keeps a running total of your account balance Types of Transactions: – Checks – Debit Card purchases – Deposits – Withdrawals (ATM)

1001 8-9 8-11 1002 8-16 8-19 8-22 8-29 1003 8-29 8-31 Kroger - groceries Wal-Mart - random IBHS Paycheck Casey’s - gas Withdraw VOID Paycheck 24 95 25 97 15 00 120 00 31 80 40 00 -- -250 00 Beginning Balance: 430.56 Sample Transactions Aug. 9 – wrote a check #1001 to Kroger for 24.95 430 405 379 364 484 452 412 412 662 56 61 64 64 64 84 84 84 84 Aug. 11 – bought random items at Wal-Mart for 25.97 using your Debit Card Beginning carried over) Aug. 16 –1. wrote a check Balance # 1002 to(OR IBHSbalanced for 15.00 Check Number Aug. 19 –2. deposited your paycheck of 120.00 Aug . 22 –3.gotDate gas at Casey’s with your Debit Card for 31.80 Transaction Description Aug. 29 –4. withdrew 40 from the ATM Aug. 29 –5. wrote checkof #1003 but made an error while writing the check so not Amount Payment OR Deposit using the running check Total 6. New Aug. 31 – Deposited a check from your parents for 250.00

Reconciling Your Bank Account Matching your checkbook register with the bank statement (or online statement) Outstanding Debit Card Purchases, Checks, or Deposits: Any DC purchase, check, or deposit that is recorded in the register but has not yet cleared the bank Register balance last line on reconciliation sheet

O O -O 477.79 250.00 2017 727.79 8/17 8/19 #1001 WD 24 95 40 00 8/27 64.95 662.84