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© South-Western Educational Publishing Chapter 9 Checking Accounts and Other Banking Services Checking Accounts Other Banking Services and Fees
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GOALS © South-Western Educational Publishing Lesson 9.1 Checking Accounts Describe the purpose of a checking account. Discuss how to prepare banking forms. Be able to distinguish between different types of checking accounts.
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© South-Western Educational Publishing Checking Account Vocab Check Demand deposit Canceled check Overdraft Floating a check
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© South-Western Educational Publishing Opening a Checking Account Signature authorization form Initial deposit
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© South-Western Educational Publishing Parts of a Check 071000741 08 40 856 0581 581 ARDYS JOHNSON Phone: 555-0100 4250 West 18 th Avenue Chicago, IL 60601-2190 SKY CENTRAL BANK Chicago, Illinois PAY TO THE ORDER OF DOLLARS For Classroom Use Only MEMO DATE 2-74 710 $ July 1, 20-- Food Mart 36.12 Thirty-six and 12/100 groceries Ardys Johnson
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© South-Western Educational Publishing Using Your Checking Account Writing checks Paying bills online Making deposits Using a checkbook register
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© South-Western Educational Publishing Endorsing Checks Blank endorsement Special endorsement Restrictive endorsement
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© South-Western Educational Publishing Types of Checking Accounts Joint accounts Special accounts Standard accounts Interest-bearing accounts Share accounts
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© South-Western Educational Publishing Other Banking Services Guaranteed- payment checks Money orders Debit cards Bank credit cards Automated teller machines Online banking Telephone banking Stop payment orders Safe deposit boxes Loans and trusts Financial services
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© South-Western Educational Publishing Bank Fees Examples of bank fees Loan fee Trustee fee Check cashing fee for non-customers Per-check fee Maintenance fee Check printing fee ATM transaction fee
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Different bank accounts Checking Demand Deposit Savings © South-Western Educational Publishing
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Transaction Accounts Demand Deposits- payable on demand whenever the depositor chooses Checking Account - most common form; offers customers quick access to their money and a convenient way to pay bills or transfer funds to other institutions.
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Checking Accounts Basic- Offer a few simple services for minimal cost Interest bearing checking- Pay interest on the balance deposited in the account, but usually a minimum balance is required
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Time Deposits Less liquid than check deposits Examples include: Savings Accounts Money Market deposit accounts Certificates of Deposit (CDs)
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Savings Accounts Banks usually limit the number of free withdrawals. Statement Savings Accounts: Provide a quarterly statement detailing account activity, including fees and interest earned. Lower interest rates than other time deposits because it is the most liquid
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Money Market Deposit Accounts MMDAs offer a higher rate of interest than savings accounts, but they usually require a higher initial deposit to open an account. FDIC insured up to $250,000 Minimum balance usually required # of Transactions may be restricted
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Certificates of Deposit CDs are certificates offered by the bank that guarantee payment of a specified interest rate until a designated date in the future (maturity date). Higher the amount and longer time until maturity = higher interest rates Usually higher than money market accounts and savings accounts
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Assignment In groups of 3, research the various types of transaction accounts and time deposits offered at a bank in your area. Provide details about each type of account Research should be summarized on a flyer, or brochure.
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