BANKING SERVICES

Types of Financial Institutions Commercial Banks Savings and Loan Associations Credit Unions Brokerage Firms

Bank Services Checking Accounts Interest on checking Automatic deposit and payment Storage of valuables (safe deposit box) Transfer of money Overdraft checking Traveler’s checks FDIC (Federal Deposit Insurance Corporation) Credit Cards Debit cards/ATMS

Choosing a Checking Account Monthly fees Per-check charges Balance requirements Interest rate How rates are calculated How soon you can draw against a deposit Bounced check charges On your check On a check you deposit ATM charges Check card charge Stop payment fees Charges for printed checks Locations/number of branches Bank hours

Opening a Checking Account Signature authorization card The contract and what it means Initial deposit

Types of Checking Accounts Individual Account – has only one holder Only that person can make withdrawals from the account Joint Account – two or more individuals Each person that signs the signature card can make withdrawals from the account

Making a Deposit Writing a deposit slip Deposit slip – a form to be completed when you deposit money in your account Endorsing a check Blank endorsement (just your signature) Depositing a check Direct deposit Manual deposit

Deposit slip Steps in preparing

How to Endorse a Check

3 Types of Endorsements Blank Endorsements – used only with endorser’s signature Special Endorsements – Endorse in full Pay to the order of William Furman Ben Furman Restrictive Endorsement For Deposit Only to The account of Rugcare Ben Furman

Checks Checkbook-contains checks that are used for making payments in cash Keep accurate records of your transactions Insufficient funds – fee charged to cover your withdrawal if you overdraft your account. Check stub/check register – used to record the balance of the account, the amount of each check written, to whom the check is written, deposits made to the account, the date, and any charges made by the bank. Service charge – is a fee charged by the bank for having a checking account. Canceled checks – Your checks that the bank has processed and deducted from your account.

Check Register Fill out the check register either before or immediately after writing a check or using your debit card Balance – the amount of money on deposit in the account at that time Every time you write a check or use your debit card deduct this amount from the previous balance in order to calculate the new balance

Check Register

3 Types of Check Registers Regular Check Register Side Check Stub Top Check Stub

How to Write a Check Use a pen, write in the date (Include the month, day, and the year) After Pay to the Order of, write the name of the payee (the person or business being paid) Write the amount of the check in numbers – Cents should be written as a fraction of 100 Use the line marked For, to make a note about the purpose of the transaction Sign your name as written on your signature card

Check

Completed Check

Benefits of Using a Debit Card Convenience Eliminates the need to carry cash Doesn’t deplete the available cash in your wallet Can be used out of town or at locations where checks are not accepted Reduces the possibility of loss or theft of cash

Using a Debit Card Remember your personal identification number (PIN) and keep it confidential Enter information about your transaction in your check register Keep a running balance in your check register of your debit card transactions

Reconciling Your Bank Statement Look over your bank statement Reconcile your account Check the bank statement Verify checks and debit card transactions in the check register Verify deposits Correct any entry or deposit errors in the check register Correct any omission errors in the check register Find outstanding transactions

BANK STATEMENT

Bank Reconciliation Form “Outstanding Checks” “Outstanding Checks” “Outstanding Deposits”