Checking Accounts & Other Banking Services Business Department Mrs. Pollison

Why use a bank? Keep money safe from loss or theft Pay bills easily & inexpensively Maintain records Direct deposit of paycheck Build savings & earn interest Establish credit Access mortgage loans, car loans, etc.

Parts of a Check Check No. – upper right-hand corner ABA No. – location & district of bank (fraction) Name & address – preprinted Date Payee – check payable to Numeric amt. - $ in figures Written amt. – spell out $ Signature Account & Routing No’s. – lower left bank’s ID code/account no. Memo – account no’s., reference (optional)

Writing Checks Use a dark ink pen Write legibly Signature exactly as printed on check & signature card Avoid mistakes Write “Void” across face to cancel check Be sure you have enough $$ in account to cover check

Online Bill Payment Register on website Select PIN Pay Bills: Select payee Enter amount Enter in check register Be aware of “lag time” Deposits Deposit slip Endorse checks Less cash received Keep copy or receipt

Checkbook Register: Booklet used to record checking account transactions DEP = deposit POS = point of sale (check card) SC = service charge INT = interest ATM – ATM withdrawal ON = online transaction Reconciliation: Process of comparing your checkbook register with the bank statement

Endorsements: signature of payee on back of check. Blank Endorsement – signature of payee exactly as name appears on front of check. (all payees must sign). Special Endorsement – (endorsement in full) transfers right to cash check to someone else. Pay to the Order of _________________ Signature of Payee Restrictive Endorsement – restricts/limits use of check. (safer!) For Deposit Only Signature of Payee

Types of Checking Accounts “Free” Checking – (no service charges) Joint Accounts – two or more people Survivorship account “or” account; “and” account Special Accounts – service fees vary; check fees; few checks/deposits Standard Accounts – set monthly service fee; no per-check fee; min. balance.? Interest-Bearing Accounts – requires min. average balance; $500+ Share Accounts – (Credit Unions); no service fees; low or no average daily balance.

Other Banking Services: Certified check – personal check guaranteed by bank to be good. Buying a car Cashier’s Check (bank draft)- check written by a bank on own funds. House purchase Money Orders – like a check; persons without checking account; fee

Debit Cards – immediate deductions from checking acct. to pay for purchases. Bank Credit Cards – VISA/MasterCard; interest charge; some have annual fee Automated Teller Machines (ATM) – use debit card to: withdraw cash; check balances; transfer $$ Online & Telephone Banking Stop Payment Orders Safe Deposit Boxes Loans & Trusts Financial Services