BANKING For your Green backs

U. S. Federal Mint  U.S. Federal Mint operating bureau of the Department of the Treasury makes new coins.  U.S. Bureau of Engraving and Printing prints new currency.  New coins and currency are sent to the Federal Reserve Banks which distributes as needed.

Federal Reserve  The FED uses monetary policy to regulate the nation’s money supply.  Provides banking services to depository institutions.  Supervises and regulates most large banks.  Formulates and implements money policy.

Cash cards  Consumers purchase cash cards for a specific amount of money.  Money is loaded and stored on the card’s memory.  Money can be spent.  Some merchants allow customers to reloaded money on the cash cards.

Depositing large amounts of money  If a person makes a deposit of $10,000 or more into a bank account, the bank must notify the U.S. Treasury Department.

What is a Series EE savings bond?  Series EE savings bonds are issued by the U.S. Treasury.  They can be purchased for one-half of the face value.  Earn interest monthly  Buy a $50 Series EE bond for $25  Within 17 years is guaranteed to reach face value of $50.00!

How can you earn interest on your money?  Certificates of deposit “CD” – less liquid  Earns higher interest rate than Money Market or Savings accounts.  Larger amounts of money deposited for a period of time for a fixed interest rate. Cannot be withdrawn without penalty! 31 days to 8 years Can be rolled over into another CD Must pay taxes on interest earned

How can you earn interest on your money?  Money market account – less liquid  Earns higher interest rate than Savings accounts  Large amount of money deposited for a fixed period of time for a fixed interest rate.  Must pay taxes on interest earned.

How can you earn interest on your money?  Savings account – most liquid  Earns lower interest than Certificates of deposit and Money market with no fixed period of time.  Must pay taxes on interest earned.

Safe-Deposit Box  Safe-Deposit box is a metal box in a bank’s vault  Requires 2 keys 1 required by bank 1 required by customer/owner  Only owner can access box  Pay a fee to rent  Store important papers – Mortgage Loan Papers

Automated Teller Machine  No fees if you use your own bank  Personal Identification Number “PIN”  Keep it safe!

Checking Accounts

Types of Checking Accounts  Regular Checking  Designed for people who write a few checks each month and do not keep a minimum amount of money in the account  Interest-Bearing  Account that earns interest on the balance  Requires a minimum amount in the account at all times

Tools for Checking Accounts  Check / Debit Card  Can be used anywhere Visa & Mastercard are accepted  Instantly drafts payment from your account  Always sign or write “Check ID” on the back!  Check Book  Official check forms from the bank  Check Register  Used to record all checking transactions (debits, checks, deposits, transfers,, etc.)  Bank Statement  Official bank document listing all checking transactions  ed or mailed every month

Types of Checks  Personal  Travelers  Cashier  Certified Click here to learn about the difference between each type of check.here

Certified Check  Certified Check is a check for which the bank guarantees payment.  It is stamped by the bank  Funds to cover are immediately withdrawn from depositor’s account.

Elements of a Check  Drawer : the owner of the account & the person who signs the check  Payee : the person to whom the check is written  Drawee : the bank or financial institution that pays the check

Cashing Checks  Endorsing a check is signing off that you are the payee listed.  Sign the line on the back of the check when you cash or deposit it.  You can also sign over a check to another payee. ENDORSE CHECK HERE X_____________________ ______________________ ______________________ ______________________ ______________________ ______________________ ______________________ DO NOT SIGN / WRITE / STAMP BELOW THIS LINE

Parts of a Check Today’s Date Name of Payee Amount Amount Spelled Out In Words PurposeSignature Name & Address of Bank

Writing Personal Checks  Use checks in order by number  Always use the current date  Write the payee’s name clearly on the line labeled Pay to the Order Of  Write the amount to be paid in numeric figures after the printed dollar sign $

Writing Personal Checks 5. Spell out in words the amount to be paid clearly on the line below the payees name 6. Indicate the purpose of the check on the line labeled For 7. Sign your check

Tips for Writing Checks  Write checks in ink  Only write checks if you have enough $$$ in your account to cover it  Use the current date

Tips for Writing Checks  Always fill in the amount  Void checks on which you make an error  Record every payment in your check register, including EFT

Caution! If you are not careful with your checking account, you might incur service charges from the bank!  Overdraft – using more debits or writing more checks than the money available in your account  Stop Payment- an order for a bank not to cash a particular check or set of checks

Reconciliation  Process of comparing your check register to your monthly bank statement  Verify that starting and ending balances match

THEMINT.ORG Follow the directions to practice writing checks and learn how to track your checking account! a-check.html e-your-checking-account.html

HOW TO COMPLETE A DEPOSIT SLIP Watch the video on how to complete a deposit slip and then practice!