Opening a Checking Account

Opening a Checking Account

AdvantagesTypes of Checking AccountsOpening an AccountEndorsementsRecording the Deposit

Advantages of a Checking Account

Convenience Write checks and pay

bills by mail Automatic payments

through EFT Safety

Risk of losing cash by fire, theft, or carelessness

Greater temptation of spending cash

Safely send check through mail

Insured by FDIC

Advantages of a Checking Account

Proof of Payment A cancelled check

is legal proof of payment

Record of Finances Record of deposits

and payments will help in managing your money.

Types of Checking Accounts

Regular CheckingNo service charge if you maintain balance

Interest-BearingEarns interest, usually requires a minimum

SpecialCharge per check writtenService chargesStudent Accounts, etc.

Opening a Checking Account

Eligibility requirement – 18 years oldComplete a signature card

Used to compare with those on your checksUse same signature on card as on checksOther person on your account must also

sign (joint account)Make Deposit

Fill out a deposit slip (currency, coins, and checks)

Making Deposits

Making Deposits

To make a deposit, you fill out a deposit slip and endorse, or sign, the back of the check.

Endorsing Checks

Endorse Write name across left

end of check – allowed 1 ½ inch space

Purposes Allows the recipient to

cash, deposit, or transfer it to someone else.

Legal evidence that the receiver cashed or transferred the check

Types of Endorsements

BlankOnly the endorser’s nameMakes a check payable to anyone who has

it.Special

“Pay to the order of ______”, then the signature of the endorser.

Restrictive “For Deposit Only” then sign

Three Types of Endorsements

Here are some tips for endorsing a check: Don’t endorse a check until you’re ready to cash or

deposit it. Write your signature on the left end of the back of

the check, on the lines printed for endorsement.

Use only a pen so that your signature cannot be erased.

Tips for Endorsing a Check

Here are some tips for endorsing a check: If you are depositing a check by mail, write “For

deposit only” directly above your signature. Sign your name exactly as it is spelled on the front of

the check. If your name has been misspelled on the front, the endorsement should include the incorrect spelling, followed by your correct signature.

Tips for Endorsing a Check

Recording the Deposit

When you make a deposit, get a receipt

Record deposit in your check register (or check stub).

Using the Check Register

Using a Check Register

Before you write a check, write the date, the check number, the name of the party who will receive the payment, and the exact amount in your check register.

A Personal Check

Savings Plans and Payment Methods

Filling Out a Bank Reconciliation Form

Savings Plans and Payment Methods

To reconcile your account is to bring your check register into agreement with the bank statement for your account.

Filling Out a Bank Reconciliation Form

Savings Plans and Payment Methods