Chapter 7

Banking Services

How Banks Work 7.1

The Role of Banks Types of Money

Using Your Checking Account 7.2

Your Checking Account Checking Account Types and Costs

Types of Checking Accounts

Interest bearing Usually a interest rate of 1-2%

Non-Interest bearing Most checking accounts

Checking Account Fees Maintenance Fee – flat fee for having an account Service Fee – charge for each check you write

Electronic Banking 7.3

Electronic Funds Transfer (EFT) and ATMs Uses of Electronic Funds Consumer Protection and Responsibilities

Balance Your Checkbook 7.4 Your Bank Statement The Account Reconciliation Form

Account Reconciliation Form

Statement Column Balance from

statement Deposits not listed Total Balance &

Deposits Checks not listed Total Checks Statement Balance

Checkbook Column Checkbook Balance Deposits not listed Total Balance &

Deposits Fees not listed Interest Payment Checkbook Balance

Bank Statement = $275.38Check Register = $363.85

PAYMENTS OUTSTANDING

No. 175 $ 72.00

178 $ 34.67 Ending balance on statement 275.38

180 $ 425.00 Add deposits not shown

620.14

     

    Subtotal 895.52

Total $ 531.67    Subtract payments

outstanding $ 531.67

Balance $ 363.85

Other Banking Services 7.5

Different Checks for Different Purposes Other Services