1. Checking Accounts and Other Banking Services
Chapter 9
Lesson 9.1 – Checking Accounts
Lesson 9.2 – Other Banking Services and Fees

2. Checking Accounts
An account that allows depositors to write checks to make payments.
Checking account is also called a “demand deposit”
Checks follow a process
When check goes through this process it becomes a ‘cancelled’ check
Cancelled checks should become a part of your record keeping system

3. Advantages Provides a convenient way to pay your bills.
Often safer than using cash.
Has a built-in record keeping system that you can use to track expenses and create budgets.
Gives you access to other bank services.

4. Responsibilities
Write checks carefully and keep an accurate record or checks and deposits.
Verify the accuracy of the bank statement you receive each month.
Keep cancelled checks among your permanent records.
Maintain sufficient funds in your account to cover all the checks you write.

5. Opening a Checking Account
Fill out and sign a signature authorization form (see page 239)
Most banks require a minimum initial deposit (usually $50 or more)

6. Parts of a Check 581 John Doe 123 Main Street Anytown, ST 11111 20 $
Pay to the
Order of $
Dollars
Bank Name
City, State
Memo
: |: 08—40—

7. Writing Checks Always use a pen.
Write legibly. Keep numbers and letters clear and distinct, no extra spaces.
Sign your name exactly as it appears on your signature card.
Avoid mistakes. If you make a mistake, write “VOID” across the face of the check.
Be certain you have deposited adequate funds.

8. Making Deposits Complete a deposit slip (see pg 243) Date Cash
Checks (use ABA check number)
Total
Sign deposit slip if you are asking for cash back
Will get a receipt from the bank

9. Endorsing Checks Blank Endorsement Special Endorsement
The signature of the payee written exactly as it appears on the front of the check
Whomever possesses the check may cash it
Special Endorsement
Endorsement in full
Transfers the right to cash the check
Restrictive Endorsement
Restricts the use of a check

10. Checkbook Register Be sure to record all check and deposits right away
Two line record
Be sure to record: check #, date, to, for, amount and figure balance

11. Reconciling Your Account
Bank will send out a monthly statement
Lists: all withdrawals and deposits, service charges, and interest earned
Form is usually on the back of the bank statement
Tells you exactly what you have to do

12. Types of Checking Accounts
Joint Accounts
Opened by two or more people
Special Accounts
Someone who only writes a few checks
Fees based on usage
Standard Accounts
Usually has a set monthly service fee
Interest-Bearing Accounts
Share Accounts
Offered by credit unions

13. Banking Services Guaranteed Payment Checks Money Orders Debit Cards
Certified check
Cashier’s check
Money Orders
Debit Cards
Bank Credit Cards
Automated Teller Machines
Online and Telephone Banking

14. More Banking Services/Fees
Stop Payment Orders
Safe Deposit Boxes
Loans and Trusts
Financial Services
Bank Fees