1. Checking Accounts and Other Banking Services
Chapter 9
Checking Accounts and
Other Banking Services

2. Purpose of a Checking Account
Checking accounts allow depositors to write checks to make payments.
Check –
Demand Deposit -

3. Life of a Check ________ writes a check to a ________
________ cashes the check at his/her bank
Bank that cashed the check returns it to the _________bank
________bank withdraws $ from _______
account to reimburse the other bank
Check is then cleared and becomes a ___________ __________

4. Check Clearing Cancelled check –
Cancelled checks can be used as proof of purchase or payment in the event of a dispute
Outstanding check –

5. Advantages of Checking Accts.
_____________way to pay bills
Checks are often _______________
Checking accts have a built in ________ __________system
Checking acct customers often have access to other bank services (online banking, ATMs, loans, etc.)

6. Responsibilities of having a checking account
Checks must be ______ ______ and you are responsible for keeping _________ _______
____________________in your account to cover all purchases.
________ _______ of bank statement each month

7. Maintaining sufficient funds
Overdraft –
Floating a check –
Postdating –

8. Opening a Checking Account
Bank will require __ and _________________
Fill out and sign a verification form -
Submit an ________ ________
-Amounts required vary by bank

9. Parts of a Check Check number: ABA number (American Banker’s Assoc.)
Maker’s pre-printed name and address:

10. Parts of a check cont.
Date:
Payee –
Numeric amount

11. Parts of a check cont. Written amount: Write dollar amount in _______
Use “and” to separate dollars and cents
Express cents in a _______ (over 100)
Start at the far _____ of the line
Draw a line to the end to fill in any extra space
Do not write _________

12. Parts of a check cont.
Maker’s signature:
Account number:
Memo :

13. Writing a Check Always use _____ Write _______
Sign your name exactly as it appears on _________ _______
Avoid mistakes (void checks)
Make sure there are adequate funds to cover check.

14. Paying Bills Online
Bills can be paid electronically using one of two options:
Register your bank’s routing number and your account number with the vendor and pay your bill through the __________ _________.
Register payee’s (vendors) with your own bank and pay bills using ____________________.
Online bill pay is _______ and convenient.
Online bill pay eliminates the need for ______ and ________.

15. Filling out a Deposit Slip
Complete a deposit slip anytime you add money to your account at the bank.
Insert the ______
In “cash” section fill in total __________
In “checks” section ______________with ABA number and amount.
____ currency and checks and record as _______
If you want _____ ____ fill in “less cash received.”
__________ cash received from subtotal and enter total amount as net deposit.

16. Using a checkbook register
Used for your ___________ record keeping.
Record transactions as they happen.
Add or subtract amounts appropriately and maintain an accurate balance.
Use the register to reconcile your account with the _____ ________at the end of each month.

17. Reconciling Your Account
Reconciliation –
Most banks enclose cancelled checks with the statement.
The back of bank statement includes a form to help reconcile your account.
The goal is get your ________ balance and the ______ __________ balance to ______.

18. Reconciling

19. Endorsing Checks
Checks cannot be cashed until they are endorsed on the _____ by the ______.
Blank endorsement –
Special endorsement –
Restrictive endorsement –

20. Types of Checking Accounts
Joint Account –
Special Accounts
Standard Accounts
Interest-bearing Accounts
Share Accounts

21. Other Banking Services
___________ banks offer checking accts, savings accts, credit cards, safe deposit boxes, ATM’s, online banking, loans, etc.
Guaranteed payments:
Certified checks –
Cashier’s checks –
Money orders –

22. More Banking Services Debit card – Credit card – ATM –
Overdraft protection –

23. More Banking Services Stop payment orders – Safe deposit boxes –
Loans and trusts –
Financial services –

24. Bank Fees Banks charge ______ to cover their operating expenses.
Common fees include: