FINANCIAL AWARENESSChecking & Savings Accounts

Lesson 4: Managing a Savings Account – Part 2

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Managing a Savings Account Now that you have setup a savings account, you need to know how to manage the account.

To properly maintain and manage your savings account, you need to know how to:

• Complete a Deposit Slip• Make a withdrawal• Make a transfer• Maintain Transaction Register• Read a Savings Account Statement• Reconcile (balance) a Savings Account Statement

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Direct Deposit & Automatic Deposit

The most consistent way to make a deposit into your savings account is through direct deposit or automatic deposit.

This ensures that a specified amount is deposited into your savings account at a designated time.

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Direct Deposit & Automatic Deposit Direct deposit is when you have your paycheck automatically deposited into your checking account.

Your employer must offer direct deposit in order to have your paychecks direct deposited.

At the time you setup direct deposit of your paycheck, you will need to indicate on the enrollment form the amount of money you want deposited into your savings account.

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Direct Deposit & Automatic Deposit

If you cannot have your paycheck direct deposited, you can setup an automatic deposit through your bank.

An automatic deposit is when you designate the amount and time for money to be transferred from your checking account to your savings account.

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Completing a Deposit SlipJust like your checking account, banks require an endorsement on all checks to be deposited into your savings account.

To endorse a check is when you sign your name on the back of the check to either get cash or deposit the check into your account.

A check endorsement tells the bank what to do with the check.

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Completing a Deposit SlipMost checks have an endorsement line on the back of the check indicating where to write your signature.

Next, you will need to complete a Deposit Slip.

Some banks will offer you personalized savings account Deposit and Withdrawal Slips usually for a fee; however, all banks have blank Deposit and Withdrawal Slips for you to use.

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Completing a Deposit Slip

Most banks use a combination Savings Account Deposit Slip and Withdrawal Slip.

Complete the following fields to make a deposit:

Date Line

Write the date you are making the deposit on this line.

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Completing a Deposit Slip

Name and AddressIf the slip is not personalized, write your name and address where indicated. Account NumberWrite your savings account number where indicated on the form.

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Completing a Deposit Slip Cont.

CashIf you are depositing cash, write the total dollar and coin amount you are depositing. ChecksList checks individually by name and amount.

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Completing a Deposit Slip Cont.

Total Deposit or $ Amount

Add the cash and checks to get the total.

This is the total amount that will be deposited into the designated account on the Deposit Slip.

Always double-check the information on the Deposit Slip before submitting it to the teller or ATM.

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Distribute Exercise #2: Managing a Savings Account.

You will use this handout throughout Managing a Savings Account – Part 2 to mark your responses to questions.

Exercise #2: Managing a Savings Account

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Directions:Stephanie received her first pay check and needs to complete a savings deposit slip. See if you can help her complete the deposit slip.

Question 1Write the letter of each item in the correct section of the deposit slip on the next page.

Exercise #2: Managing a Savings Account Question 1

(A) Smith’s $565.00

(B) Stephanie Alexander

(C) December 15, 2009

(D) $565.00

(E) 53400278912

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Making a Withdrawal Most savings accounts do not have checks.

If you want to make a withdrawal from your savings account, you will need to complete a Withdrawal Slip.

Most banks use a combination Savings Account Deposit/Withdrawal Slip.

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Making a Withdrawal

Complete the following fields to make a withdrawal:

Date LineWrite the date you are making the withdrawal on this line.

Name and AddressIf the slip is not personalized, write your name and address where indicated.

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Making a Withdrawal Account NumberWrite your savings account number where indicated on the form.

Amount Withdrawing $Write the total dollar amount you are withdrawing from your savings account in this field.

SignatureSign the Withdrawal Slip where indicated.

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Making a Transfer The easiest way to transfer money from your savings account to your checking account and checking account to savings account is to use an ATM or online banking.

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Making a Transfer Here is the standard transfer process at most banks:

To Transfer from Savings to CheckingTo manually transfer money from your savings account to your checking account, you need to complete a Savings Account Withdrawal Slip and then complete a Checking Account Deposit Slip.

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Making a Transfer To Transfer from Checking to SavingsTo manually transfer money from your checking account to your savings account, you need to complete a Check for ‘Cash’ and then complete a Savings Account Deposit Slip.

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Maintaining a Transaction Register

You will receive a Transaction Register when you open your savings account.

You can get additional Transaction Registers at your bank location.

The Transaction Register is used for keeping track of the money in your savings account.

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Maintaining a Transaction Register

Use this Transaction Register to record all of your:

• deposits,• withdrawals,• transfers and• interest earned.

It is important to record all transactions in your Transaction Register so you always know your account balance.

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Maintaining a Transaction Register

A savings account Transaction Register usually has the same information as a checking account Transaction Register.

Here are the steps for completing a Transaction Register:

Number or CodeUse this area to code each transaction. This will make it easier when balancing your monthly Savings Account Statement.

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Completing a Transaction Register

DateWrite the date the transaction occurred.

Transaction Description

Write a description of the transaction – transfer, deposit, withdrawal or interest.

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Completing a Transaction Register

Payment, Fee or Withdrawal (-)

Write the dollar amount of the transfer or withdrawal transaction.

These are transactions that are subtracted from your account.

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Completing a Transaction RegisterCheckmark Column

This column is for you to check-off items when balancing your savings account against your monthly statement.

Always remember to insert a checkmark when deducting service charges or adding interest.

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Deposit or Credit (+)

Write the amount of all deposits and credits in this section.

Remember to list all direct deposits and interest earned on your savings account.

These are transactions that are added to your account

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Completing a Transaction Register

Balance

To keep a current record of your savings account balance, add or subtract the transaction amount from the balance of the above transaction line.

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Completing a Transaction Register

Most Transaction Registers include a section in the front or back for you to keep track of all direct deposits and automatic payments so you do not forget to add or deduct them when they are due.

A Transaction Register usually includes a calendar on the back cover to reference when needed.

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Question 2What is the purpose of a Savings Account Transaction Register?

Exercise #2: Managing a Savings Account Question 2

A. To record all of your withdrawals

B. To record all of your deposits

C. To record all of your bank fees and/or interest

D. All of the above

Lesson 4: Managing a Savings Account – Part 2

END OF LESSON

NEXT SECTIONLESSON 4: MANAGING A SAVINGS

ACCOUNT– PART 3