CHECKING ACCOUNTS

Objectives

Checking accounts Checkbook Other debits Protecting Your Data Endorsements

Checking account

Demand deposit Check

Written order to bank to pay the stated amount to the person

Benefits: Easier than carrying money Cancel checks – proof of payment

FDIC – insures up to $100,000

Opening a checking account

Little money Given blank checks Monthly fee Signature card

Compares signature

Checkbook

Checkbook register Tool used to track checking

account transactions Deposits

Money added to the checking or saving account

Running balance Shows amount of money in account

Other debits

Automatic withdrawals Money deducted from account and

transferred to another party ATM Fees

Writing checks

Check Legal document used to transfer

money Payee

Who check is to

Rules for Writing checks

Current date Post-dated checks – future date

Never leave anything blank Fill in extra spaces with lines or

zeroes Sign name exactly as signature

card Memo line is optional VOID – if mistake

Protecting Your Data

Check fraud Someone alters check to get data

or money Forgery

Signs another’s name

How to keep safe?

Keep checks in safe place Protect pin number Never give out bank account

number Use credit card over Internet

Instead of debit card

Making Deposits

Endorsements Signature on back to

authorize bank to cash or deposit check

Types of Endorsements

Blank Just a signature

Restrictive Purpose of transfer “For deposit only”

Special Being transferred to someone else “Pay to the order of”

Extras

Automatic Deposits Money electronically placed in

account

Bank Services

Safety Deposit Box Important documents Safe from fire or theft

Bounced check NSF – Non sufficient funds Over draft protection sometimes

Stop Payment Banks told not to honor check

More Bank Services

Cashier’s Checks Check issued against bank funds

Money Order Type of check used to make a

payment

End