(Usually have to be 18 years old to open & get ATM or debit card)

 A simple checking account in which you do not need to maintain a minimum balance  Receive a monthly statement, you’re responsible to balance checkbook with statement  Have checks to write out  Can get an ATM or a Debit card (usually with Visa or Mastercard logo...can be used to make purchases and at ATM)  If account is overdrawn, there is usually a fee (ex. $35 - $40 fee)

 A checking account that you have to keep a minimum balance (usually $100) in at all times to avoid a fee  Receive a monthly statement, you’re responsible to balance checkbook with statement  Have checks to write out  Can get an ATM or a Debit card (usually with Visa or Mastercard logo & can be used to make purchases and at ATM)  If account overdrawn, there is usually a fee (ex. $35 - $40 fee)  Usually no interest earned on this account

 A checking that earns interest  Minimum balance (ex. $500 -$1000), to avoid the fee  Receive a monthly statement, you’re responsible to balance checkbook with statement  Have checks to write out  Can get an ATM or a Debit card (usually with Visa or Mastercard logo & can be used to make purchases and at ATM)  If account overdrawn, there is usually a fee (ex. $35 - $40 fee)

 Safety - only the payee can cash  Safe to send in the mail  Convenient for large sums  Records transactions - can view cashed checks online  Checks can be stopped by calling the bank

Endorsing Checks  Endorsement - signature on the back of the check  It’s a message to the bank to deposit, transfer, or cash 1. Blank Endorsement - signature only check turns to “cash” 2. Restrictive Endorsement- sign and write “for deposit only” 3. Full Endorsement- sign and write “pay to the order of… (a third party)

You can write a check out to yourself or to Cash  If you write it to cash anyone can cash it!  You can only cash a check if you have enough money in your account to cover the check  Checks must “clear”- the bank sends an electronic image to the other person’s bank  Takes 1-3 days

 Printed on invisible fluorescent threads  Erasure Protection - turns white  Chemically resistant to lifting ink  Void appears when copied

 Cancelled check - check that has been cashed  Outstanding check - check that hasn’t been cashed  Certified checks - Guaranteed personal check stamped by bank (fee $5-20)  Cashier’s checks - bank check that the bank signs after you have paid the bank (fee $25+)  Money orders - Guaranteed check from an institution (Bank, Rutter’s…) instead of a personal check or cash. (fee $.49-3: may have to pay in cash)  Traveler’s checks - pay for in advance (bank, travel agency) -if lost/stolen can be replaced

 Movement of money by phone or computer  Don’t need check or cash  Deduct from one account and add to another  Quicker and cheaper for banks  Safer and less mistakes  Ex: ATM’s, pay pal, direct deposit, debit cards, automatic bill payments, online banking

 ATM - Automatic Teller Machine  Make deposits, withdraw cash, transfer money between checking and savings accounts, check balances, pay loan from that bank  use anytime of day  Given a pin number for security  Direct Deposit - pay check is directly deposited into your bank account, you still get a pay stub which shows your tax deductions  Debit Cards - electronic check card  Money comes directly out of your account IMMEDIATELY  Some banks charge user fees  Automatic Bill payments/withdrawals

 Congress made a law that banks and Credit Card companies MUST inform you of all fees  The bank must offer you a receipt to verify every electronic transaction  Act also requires consumers to use EFT’s responsibly  If you lose your ATM card you must report in within 2 days and only responsible for $50 after 2 days responsible for up to $500 after 60 days responsible for all losses