Checking Accounts andOther Banking Services

Chapter 9Lesson 9.1 – Checking Accounts

Lesson 9.2 – Other Banking Services and Fees

Checking Accounts• An account that allows depositors to

write checks to make payments.• Checking account is also called a

“demand deposit”• Checks follow a process–When check goes through this process it

becomes a ‘cancelled’ check

• Cancelled checks should become a part of your record keeping system

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.

Responsibilities

• Write 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.

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)

Parts of a Check

John Doe123 Main StreetAnytown, ST 11111 20

Pay to theOrder of $

Dollars

Memo

Bank NameCity, State

:071000741|: 08—40—856 0581

581

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.

Making Deposits

• Complete a deposit slip (see pg 243)• Date• Cash• Checks (use ABA check number)• Total• Sign deposit slip if you are asking for

cash back• Will get a receipt from the bank

Endorsing Checks

• Blank Endorsement– The signature of the payee written exactly

as it appears on the front of the check–Whomever possesses the check may cash it

• Special Endorsement– Endorsement in full– Transfers the right to cash the check

• Restrictive Endorsement– Restricts the use of a check

Checkbook Register

• Be sure to record all check and deposits right away

• Two line record• Be sure to record: check #, date, to,

for, amount and figure balance

Reconciling Your Account

• Bank will send out a monthly statement

• Lists: all withdrawals and deposits, service charges, and interest earned

• Form is usually on the back of the bank statement

• Tells you exactly what you have to do

Types of Checking Accounts• Joint Accounts– Opened by two or more people

• Special Accounts– Someone who only writes a few checks– Fees based on usage

• Standard Accounts– Usually has a set monthly service fee

• Interest-Bearing Accounts• Share Accounts– Offered by credit unions

Banking Services• Guaranteed Payment Checks– Certified check– Cashier’s check

• Money Orders• Debit Cards• Bank Credit Cards• Automated Teller Machines• Online and Telephone Banking

More Banking Services/Fees

• Stop Payment Orders• Safe Deposit Boxes• Loans and Trusts• Financial Services

• Bank Fees