Opening a Bank Account Lesson 1

Think-Pair-Share Do you own a bank account? If so, at what financial institution and what type of accounts do you have? If you don’t have a bank account, how come?

Type of Accounts Savings Account Often time require a lower, or no minimum balance to establish Money can be taken out of savings at anytime Certain institutions may have restrictions Interest can be earned on money in savings account (avg 0.5-1%, unless special account)

Types of Accounts Checking Account Often time require a higher minimum balance than savings accounts Account that would be used more for spending money Account where checks can be written from and debit cards can be used Most checking accounts do not have interest, but some may

Where to Open an Account Two main types of financial institutions Commercial Banks For-profit , organized as corporations Offer full range of services: checking, savings and lending Credit Unions Nonprofit, owned by its members (members benefit) Members have some sort of common bond Full range of services found at traditional commercial banks

Things to Consider When Choosing Accessibility Types of services ATM’s available Fees/Minimum Balances $5 for savings $20 for checking Age restrictions Online Banking

Researching What’s Out There You will work in pairs to research various financial institutions to learn about the services they have available to their customers If you had $100 to start a bank account which institution would you open an account with? What type of account(s)? Why? If you have $10,000 which institution would you open an account with? Type? Why? Is there a difference on what you would do depending on the amount of money? Why? Why Not? Lesson 1_Opening a Bank Account

Writing Checks

Balancing your Checkbook Balancing your Checkbook vs. Online Banking Before this was the only means to get your personal information. No statements were sent home, no online available.

Name and Address of Account Holder Current Legal Name and Address is advised. Any checks without either would require changes to the check by the teller before accepting.

Date Date must be posted prior or on the date of payment. Post marked checks are not accepted (dated in the future).

Check Number Both indicate the check number being used. Used to identify check.

Who you are paying Where you write the full name of company or person you are paying. Checks can also be written to CASH; but anyone can CASH this. Checks are only accepted at the bank indicated on the check or at the bank/financial institution where the person is depositing.

Check Value/Amount

Where the check is from Bank/financial Institution where check is from.

Bank Routing Number Routing Number used to inform where the check is being traced to for funds.

Bank Account Number Personal bank account number.

Memo Line For personal use only. Carbon Copy behind check allows you to track checks used.

Account Owner Signature Signatures are important to verify payment. Incorrect signatures/changes in signatures could invalidate or help you to invalidate a check from a fraudulent source.

Assignment Write three checks, with today’s date, with the following information and your signature. Paid to Waipahu High School; $1234.56; Memo: Donation Paid to Todd Nakayama; $411.11; Memo: Happy Birthday

Exam Write three checks Use the information below to complete Indicate each area on the check 8/12/2013; Paid to Waipahu High School; $2013.00; Memo: Donation; Use your signature 8/22/2014; Paid to Nakayama Foundation; $10,234.45; Memo: Services Rendered; Use your signature