Viking Independent bank Mrs. sorrell Checking accounts Viking Independent bank Mrs. sorrell

Are checking accounts obsolete? One of the safest and easiest ways to manage your money A safe place to store your money but the money is still very accessible Alternatives are more expensive and/or less safe Mismanaging can be very expensive Needed to get a credit card Some bills cannot be paid via credit card Younger adults incur avoidable bank fees

Opening a checking account Convenient location Talk to bank personnel about the various checking account Use a bank with FDIC insurance If you are under 18, the bank may require the account be jointly owned with an adult Provide your “official” signature (do not use a nickname)

Making deposits Cash and checks at bank or ATM machine Must complete a “deposit ticket” Some banks allow deposit of a check image Full amount may not be available for several days Bank must determine that there are funds in the account of the person or company who wrote the check

Endorsing a check Signing on the back of the check Sign in ink so it cannot be erased Must be within 1.5 inches of the trailing edge of the check Must endorse with the same name as on the front of the check Deposit checks shortly after you receive it Checks will not be accepted after 6 months

Types of Endorsements Blank endorsement Restrictive endorsement Can be cashed by anyone who possesses it; use it when you are in the bank ready to deposit/cash Restrictive endorsement States “For deposit only” Must be put in your account and no one else can cash it Endorsement in full Used to transfer the check to another person or company

Writing checks Payee—the person or business to whom the check is written Written amount—amount of check written in digits Legal amount—amount of check written in words; the legal amount prevails over the written amount Drawer—the person who signs the check

Keeping checkbook records Record every transaction Payee—to whom payment was made Purpose of payment Amount Date Check number, if via check Must record deposits ATM transactions Electronic Funds Transfer Most commonly recorded in a check register Fill out register before you complete the transaction or write the check

Reconciling the statement Bank sends account statements monthly Transactions grouped by “Debits” and “Credits” Debits—decrease in balance Checks you have written ATM transactions Bank fees Credits—increases in cash balance Deposits made Interest earned

Miscelaneous Stop payment order Cancel a check you have written and given to someone else for payment Cannot be issued if check has cleared the bank If you checks are lost or stolen, you should close your account Wired money is available as soon as it is received Certified check guarantees it will not bounce Stop payments, Certified checks and Bounced checks all have extra fees subtracted from your account