Personal Banking Economics Ms. McRoy

“Aim” What are the ins and outs of a personal banking account?

Types of Banking Accounts Checking – an account where you can deposit your funds and withdraw as necessary. Typically do not offer interest. You can write checks and use ATM/debit cards to access this money. Savings - an account where you can deposit your funds, and it pays interest on the account. You cannot write a check to withdraw money from this account. The number of withdrawals typically limited to six per month.

Types of Banking Accounts A money market account (MMA) or money market deposit account (MMDA) - a type of savings account that pays interest although checks can be used to withdraw money. Typically have a higher rate of interest and require a higher minimum balance (anywhere from $1,000 to $25,000) to earn interest or avoid monthly fees. It is subject to a limit of six withdrawal transactions per month.

Deposit Slip 200 0 0 Ms. McRoy 600 0 0 May 25, 2017 800 0 0 1 2 3 4 5 6 7 8 9 1 8 0 0 0 0 Imagine that you have $200 in cash and a check for $600. You do not wish to withdraw any money at this time, and you want to put this money in your checking account. Your account number is 1234567891. What if you wanted to put this money in your savings account?

Is Your Money Safe? Federal Deposit Insurance Corporation (FDIC) – the U.S. government corporation that provides deposit insurance guaranteeing the safety of a depositor’s accounts in member banks up to $250,000 for each qualified account. National Credit Union Administration (NCUA) - the federal agency tasked with regulating, chartering, and supervising federal credit unions. Deposit insurance is provided through the National Credit Union Share Insurance Fund (NCUSIF) up to $250,000 for each qualified account.

Writing a Check May 25 17 StateFarm Insurance 400.35 Four-hundred and 35/100 -------------------------_ Policy No. 23456 You need to pay StateFarm Insurance for your car insurance. Write out a check for $400.35.

Your Personal Bank Register Check # Date Transaction Description Withdrawals (Debits) Fee Deposits (Credits) Balance   - Input the information from your deposit transaction - Input the information from our check transaction

Your Personal Bank Register Check # Date Transaction Description Withdrawals (Debits) Fee Deposits (Credits) Balance   5/25/17  Deposit $800.00  1111  Insurance Pymt  $400.35 $399.65 5/25/17 Dunkin Donuts $10.00 $389.65 What if you bought $10 of donuts from Dunkin Donuts on your debit card this morning? How would you track this?

Endorsing a Check The reason you endorse a check is to either deposit it or to sign it over to someone else. To endorse a check, simply flip the check over, and sign it on the back of the check under the area labeled, “ENDORSE CHECK HERE.”

Endorsing a Check (cont’d) Blank Endorsement: Sign your name the same way it appears on the front of the check. IMPORTANT: Do not sign your check with a blank endorsement until you are about to either cash it or deposit it. Else anyone can deposit it, if lost! Restrictive Endorsement: This is safer than a blank endorsement. Recommended if you are mailing the check or someone else is depositing your check. Before signing your check, write a phrase such as “For Deposit Only”, of “For deposit to account number…” and then sign your name underneath.

Endorsing a Check (cont’d) Special Endorsement: This method allows you to sign your check over to someone else (a third party) who may then deposit it or cash it. On the back of the check, write, “Pay to the order of” and then the name of the person you are giving the check to. Then, sign your name beneath.

Additional Payment Method Cashier's Check: Checks signed and guaranteed by the bank. (i.e. The funds are coming from the bank instead of your account ). This is usually the most secure of the options and usually doesn't have many restrictions. Certified Check:  Checks signed by the customer, certified by the bank that you have enough funds and that your signature is genuine. Usually, but not always - the bank will set aside the funds. Bank Draft: Similar to a certified check but the bank will set aside the funds until the bank draft is used. Generally used in transactions involving larger sums. Money order: A payment order similar to a certified check; however, it needs to be prepaid. Also, money orders may have maximum face values allowed.

“Aim” What are the ins and outs of a personal banking account?