Checking Accounts Money Management Chapter 9 Notes A _______________________________________ is a banking service wherein money is deposited into an account and checks, or drafts, can be written to withdraw money from the account as needed. Only you, or people you’ve designated, can write checks on the account. Checking accounts can be a useful and convenient tool. ____________________________________________________________________ , especially when making a major purchase, or when paying bills through the mail. Obviously, _________________________________________________________________ BUT ________________________________________________________________________________________________________________________________________________________________ Most banks offer MANY different types of checking accounts. When you go to open an account you should carefully weigh the accounts services and fees. Questions to ask: ____________________________________________________________________________? Examples of checking accounts offered and what services and fees they might include: Wachovia Bank http://www.wachovia.com/personal/page/0,,11_480_1427,00.html US Bank http://www.usbank.com/cgi_w/cfm/personal/products_and_services/checking/check_acct_compare.cfm Bank One http://www.bankone.com/answers/BolAnswersCompare.aspx?top=you&segment=PFS&topic=Checking&item= _______________________________________________________________ are those that the bank has already processed and paid out. Banks used to mail you back all of your cancelled checks. Now most banks just scan them in to a computer database and you can view them online. This way you can see which checks have ___________________________________ (______________________) and which checks have not cleared. For example, check this out: https://www.michedcuhb.org/onlineserv/HB/Signon.cgi

Checking Accounts Money Management Chapter 9 Notes In exchange for the convenience of using a checking account you accept certain responsibilities: You must and keep an accurate record of checks written and deposits made. You must maintain sufficient funds in your account to cover all the checks you’ve written. When you don’t have enough money in your account to cover a check that is called an __________________________________ (_____________________________________). “One of the age-old tricks for those who live check to check is “_________________________________ “… what is that? Well, that’s when ________________________________________________________________________ ______________________________________________________________________________________ Floating a check is MUCH more difficult today because of computers. Banks are just much more efficient at processing checks then they used to be. FYI: Purposefully overdrawing your account is a ________________________ that can result in a fine, imprisonment or both. Of course, it would have to be a pretty severe case in order to be prosecuted! Opening an account Need identification Need to fill out a ______________________________________________________. This card provides the bank with important information… most notably __________________________________________________________________________________________________________________________________________________________________ Accounts could have a single drawer OR it could be a joint account with multiple drawers. This becomes very important if somebody ever tries to ________________________________ on your account! You should be able to look at a check and identify each of the following: __________________________ – usually in the upper right corner _________________________ – Usually appears as a fraction in the upper right corner below the check number. The top half of the fraction identifies the location of the bank (Ex: Main Street, Ann Arbor) The bottom half identifies the bank (Ex: Bank One) Preprinted _________________________________________________(that’s an easy one) The _________________________________ (another easy one) The _________________________________ -- who you are writing the check to The __________________________________________ -- dollar amount written as a number The __________________________________________ – dollar amount written as text The __________________________________________ – make it an easy one Your ______________________________________ – usually big long number at bottom center _______________________________________ – usually big long number in the bottom left corner. This routes the check back to you bank. The ____________________________________ OR (___________________________) – allows you to explain what the check is for or to provide your account number to the company you’re sending the check to. Writing a Check ______________________________________ ______________________________________ … its ok to use cursive or to print. Sign your name the same way you did on your signature card. _____________________________ – if you make a big mistake you should ___________________________. Write the word “_________________________” in big letters across the front of the check and save it for your records. Make sure you have enough money to cover the check before you send it out into the wild blue yonder.

Checking Accounts Money Management Chapter 9 Notes Just as when you withdraw money from your account, you need to complete a form each time you deposit money into your account. This form is called a __________________________________. If you make the deposit through an ATM, ____________________________________ ________. It’s your only proof of the transaction. A ___________________________________ is a record of all deposits and withdrawals from a checking account. If you use your checkbook register properly you will ____________________ know the exact balance in your account. Reconciling your checking account. Better known as “___________________________________” A _____________________________________ is the process of comparing your monthly bank statement to your checkbook register to insure that the numbers match. ________________________________________________________ . ________________???? You may have ________________________________. Those are checks that you’ve written that haven’t cleared yet. This would make your bank statement look higher than your checkbook register. You may have _________________________________. These are deposits you made after the bank already printed and mailed you the statement. You may have _________________________________________ that you didn’t record in your register BUT that the bank has already subtracted. You should balance your checkbook each month. Most Americans DO NOT and that’s just poor money management. 

Checking Accounts Money Management Chapter 9 Notes Endorsing a Check: A check _______________________________ be cashed until its been endorsed. To endorse a check, the payee named on the face of the check __________________________ ______________________________________________________________ in black/blue ink. _________________________________________________________! You can’t just go crazy on the back of the check. There are three major types of endorsements. ________________________________ – just sign your name ________________________________ – used when you are signing over the check to a third person ________________________________ – used to limit the use of a check. For example, you can say “for deposit only” above your signature. This means that the check cannot be cashed … only deposited. Examples of different endorsement types: http://voc.ed.psu.edu/projects/CAPS/27CAPS.html This site is also a GREAT REVIEW of Chapter Nine Material! Check it out! Other important topics mentioned in Chapter Nine: __________________________________ – Use Electronic Funds Transfer to update balances as you make cash withdrawals and deposits from machines all over the world. __________________________________ – Special ATM Card that allows you to pay for transactions right out of your checking account by simply swiping the card. Very convenient! And much better than…. __________________________________ – Bank sponsored credit card … usually a MasterCard or Visa. If you qualify they will let you buy items on credit and pay for them later…. At a high interest rate. We will go into MUCH greater detail about credit cards later this semester. __________________________________ – banks sell money orders to people who don’t want to use cash but don’t have a checking account. It’s used like a check but it can never bounce because it must be paid for in advance. There is a charge for purchasing a money order! __________________________________ – check that a bank verifies is GOOD! You go in, they check your account, immediately deduct the money and stamp “certified” on the front. This lets the business accepting the check breathe easier.