1. Banking: 101 1

2. Checking Account What is a Checking Account?
An account where money is deposited and kept for day-to-day expenses
Also called demand deposit because the money can be withdrawn on demand.
How can money be withdrawn from a checking account?
In person, at a teller station
Check Card
ATM Card
Cash back at stores
Checks
Direct Payment 2

3. Canceled vs Stop Payment
What is a canceled check?
A canceled check is a check that bears the
bank’s stamp. You can use your canceled
checks as proof of purchase or of payment if a
Dispute arises.
What is a stop payment order?
A stop payment order is a request that the bank
not cash a specific check. The usual reason for
stopping payment is that the check has been lost
or stolen. Most banks charge a fee for this
service. 2

4. Bouncing a Check A check written for more money than your account
contains is called an overdraft. A financial institution
receiving an overdraft usually stamps the check with
the words “not sufficient funds” NSF and returns
the check to the payee or at the payee’s institution.
The check is considered “bounced.” The bank and
the place where the check was written will both
charge a fee.
WARNING: You are floating a check when you realize your account contains insufficient funds but you write a check anyway hoping that a deposit will clear before the check is cashed. 10

5. Online Bill Pay The bank pays your bills for you
Anyone, anytime, anywhere in the U.S.
Set up recurring payments to be automatically made
Receive reminders when bills
are due
Sign up for E-Billing to get bills electronically delivered
Keep all bill payment history in the same place 12

6. Online Banking Available 24/7 with an Internet connection
Access and manage your bank accounts and credit cards
Keep an eye on recent transactions
Transfer funds between accounts
View current and past statements
View check and deposit slip copies
Download transactions into money management documents 11

7. Additional Services Wire Transfers Direct Deposits (paycheck to bank)
Certificates of Deposit (investments)
Safe Deposit Boxes (for jewelry, collectibles, birth & marriage certificates—not for cash)
Foreign Currency Exchange 20

8. Additional Services
Money orders are sold by banks to people who do not wish to use cash or do not have a checking account. A money order is like a check, except that it can never bounce. There is a charge for purchasing a money order. You can get these through post office and local merchants. 20

9. Other types of checks
A certified check is a personal check that the bank guarantees or certifies to be good. Sometimes a payee might want you to get your personal check certified to reduce the risk of accepting your check in payment.
A cashier’s check also called a
bank draft is a check written by a bank
on its own funds. You can pay for a
cashier’s check through a withdrawal
for your savings or checking account,
or in cash. 20

10. Bank Fees
Bank charge fees to their customers to help cover their operating costs. For example, when a bank grants you a loan, it charges you a loan fee. When the bank acts as a trustee, it charges a fee for this service. Banks also charge non-customers for services such as check cashing.
Banks make a lot of money from fees. Overdrafts, NSF checks, balances that fall below the stated minimum, cashiers and certified checks, travelers’ checks, use of other banks’ ATM’s, online bill payment and monthly account servicing.
Shop around to find the bank that offers you the best services that you will use at free or the lowest prices. 20

11. Making a Deposit Your account number Today’s date
CASH = Total currency and coin that is to be deposited
List deposited checks separately
Total Deposit = Cash + Checks
Indicate if you want cash back
Net Deposit = Total Deposit – Cash back 3

12. Writing a Check Check number Today’s date Payee
**Never use pencil
Check number
Today’s date
Payee
Amount of the check in numbers
**Write as close as possible to
the dollar sign so that additional
numbers cannot be added.
5. Amount of the check in words
**Start at the left edge of the
line directly below “pay to the
order of.” Draw a line between
the amount and the word “dollars.”
6. Your signature
7. Reminder of what the check paid
8. Your account number 10

13. Debit Cards Money comes from checking account
Also called ATM or Electronic Funds Transfer (ETF)
Make purchases anywhere that accepts Visa® or Mastercard®
Get cash at ATMs all over the world
Make Internet and telephone purchases
Get cash back at participating stores 5

14. Two ways to make purchases:
Check Cards
Two ways to make purchases:
Enter PIN
Swipe card
Choose debit
Enter your PIN
Sign the Receipt
Swipe card
Choose credit
Sign the receipt 6

15. ATM & PIN What is an ATM? What is a PIN? Automated Teller Machine
Make transactions without human interaction
Withdrawals, deposits, money transfers, balance inquiries, and check imaging
What is a PIN?
Personal Identification Number
4-digit number used to access various accounts
Able to change PIN at most ATMs 7

16. Using the ATM Available 24/7
ATM transactions are usually free at your bank’s ATMs
Service fees for non-customers at most ATMs
Watch for higher ATM fees at some places
Convenience Stores
Casinos
ATMs show the available balance which may be different from your actual balance
Be sure to record all transactions, withdrawals, and fees in account register 8

17. Card & Pin Safety Card Safety Pin Safety Always sign the back
Never let anyone use card
Be sure to get it back after each use
Keep receipts of all transactions
Do not carry extra credit cards or SSN card in wallet
Immediately report lost or stolen cards
Pin Safety
Never tell anyone your PIN
Guard PIN at ATMS and cash registers
Never write PIN anywhere in purse or wallet
Banks never ask for check card PIN 9

18. Account Register Check number or transaction type
**Record all transactions when made
Check number or transaction type
Date the transaction was made
Payee and memo
Amount of the transaction
**New Balance = Previous Balance – Amount of Transaction
Amount of the deposit
**New Balance = Previous Balance + Amount of Deposit 4

19. Savings and Money Market Accounts
What is a Savings Account?
Interest-bearing account
Used to save money
Minimum balance required
Limited number of withdrawals
What is a Money Market Deposit Account?
Limited check writing
Requires a higher minimum balance
Most banks charge fees on these accounts if the balance goes below a specified level 13

20. Sample Bank Service Rates