1. Checking Account
Check: written order to a bank to pay a specific amount to a person/business (payee)
Canceled check: a check that has cleared the bank’s system
Overdraft: a check written/using debit card for more money than what is in your account
Floating a Check: writing a check when you know you don’t have enough money in your account, hoping a deposit will clear before the check does

2. Advantages of a Checking Account
Convenient for paying bills
Safer than cash for major purchases, bills, and mail orders
Built-in record keeping system
Debit Cards
Other services:
Instant loans
Online banking
24-Hour access (ATMs)

3. Opening an Account Make initial deposit Can be a joint account
Fill out a Signature Authorization Form
Compare signature on card to checks

4. Factors to Consider when Choosing
ATM Fees
Few branches = fewer ATMs to access
Charge $2-4 per use when out of network
Account Minimum Fee
Fee when balance is below a certain amount
Overdraft Fees
Fee when you overdraft
OR a fee to withdraw the over-drafted amount from Savings

5. Automatic Bill-Pay Can list bills to be paid automatically
Allow for lag time
Some banks charge fees for this
Assigned a PIN
(Personal Identification Number)

6. Types of Checking Accounts
An account opened by two or more people
“Joint Account”
An account where anyone on the account has the right to the amount deposited if the other individual dies
“Survivorship Account”
These accounts have low (or no) average daily balance requirements and no service fees
“Share Account”

7. These accounts have a set monthly service fee if an average minimum balance is not met but no per check fee
“Standard Account”
These accounts have flat rate service fees and fees for each check written
“Special Account”
 These accounts offer interest on the amount in the account as long as the amount does not fall below a minimum average
“Interest-Bearing Account”

8. Tips When Writing Checks
Use pen & write legibly
Do not put extra space between words/numbers
Keep signatures consistent
Avoid mistakes – if a mistake happens: “VOID”
Make sure you have enough money!!

9. B: Maker (Drawer)’s Name and Address (preprinted) C: Date
A: Check Number
B: Maker (Drawer)’s Name and Address (preprinted)
C: Date
D: Payee
E: Numeric Amount
Check #1001 to Wal-Mart on December 1, 2017 for groceries for $25.23 B
001 A C
December 1, 17 E D
Wal-Mart
/100
Twenty-Five and 23/100 F G H
Groceries
you r signature I J
F: Written Amount
I: Routing Number (Banks Identification Number)
J: Account Number (YOUR bank account number)
G: Memo
H: Signature

10. Depositing Checks and Cash
At the bank with a deposit slip
Through an ATM
Mobile Banking App
Log in
Take pictures of front/back of check

11. Enter any Cash you are depositing Enter any Checks you are depositing
DEPOSIT SLIPS
parents
IBHS
25 00
December 1, 2017
your signature
Depositing a 50 bill (cash), a check for $150 from your parents, and a check for $25 from IBHS on Dec. 1, You want to withdrawal $25 cash.
STEPS:
Enter the Date
Enter any Cash you are depositing
Enter any Checks you are depositing
Total all Deposits
Less cash received? (withdrawing any money?)
Net Deposit (Amount to actually be deposited)
Sign ONLY IF you are withdrawing money (can differ depending on bank)

12. Endorsing Checks
Signing the back of a check so it may be cashed or deposited
THREE TYPES
Blank Endorsement: signing your name exactly as it is on the front of the check
Simon Smith

13. Restrictive Endorsement: limiting where the check can be deposited
Special Endorsement: transferring the right to cash the check to someone else
Restrictive Endorsement: limiting where the check can be deposited
Put bank account # OR
Company Name
Pay to the Order
of Sue Jones
Simon Smith
For Deposit only
CEFCU Acct. # 12345
Simon Smith

14. Checkbook Register
Booklet used to record all checking account transactions
Keeps a running total of your account balance
Types of Transactions:
Checks
Debit Card purchases
Deposits
Withdrawals (ATM)

15. Beginning Balance (OR balanced carried over) Check Number Date 
1001
8-9
Kroger - groceries
Wal-Mart - random
8-11
IBHS
1002
8-16
Paycheck
8-19
Casey’s - gas
8-22
Withdraw
8-29
VOID
1003
8-29
Paycheck
8-31
Beginning Balance: $430.56
Aug. 9 – wrote a check #1001 to Kroger for $24.95
Sample Transactions
Aug. 11 – bought random items at Wal-Mart for $25.97 using your Debit Card
Aug. 16 – wrote a check # 1002 to IBHS for $15.00
Aug. 19 – deposited your paycheck of $120.00
Aug . 22 – got gas at Casey’s with your Debit Card for $31.80
Aug. 29 – withdrew $40 from the ATM
Aug. 29 – wrote check #1003 but made an error while writing the check so not using the check
Aug. 31 – Deposited a check from your parents for $250.00
Beginning Balance (OR balanced carried over)
Check Number
Date
Transaction Description
Amount of Payment OR Deposit
New running Total

16. Reconciling Your Bank Account
Matching your checkbook register with the bank statement (or online statement)
Outstanding Debit Card Purchases, Checks, or Deposits:
Any DC purchase, check, or deposit that is recorded in the register but has not yet cleared the bank
Register balance = last line on reconciliation sheet

17. O     O -- O
477.79
250.00
2017
727.79
#1001 WD
8/17
8/19
8/27
64.95
662.84