CHECKING ACCOUNTSCHECKING ACCOUNTS

EQ: What is the purpose of EQ: What is the purpose of

a checking account? a checking account?

TIPS FOR WRITING A CHECKTIPS FOR WRITING A CHECK

• ALWAYS USE INK!!!ALWAYS USE INK!!!

• DATE THE CHECK FOR THE DAY IT IS DATE THE CHECK FOR THE DAY IT IS WRITTEN/SIGNEDWRITTEN/SIGNED

• NEVER WRITE A “BLANK CHECK”NEVER WRITE A “BLANK CHECK”– ALWAYS WRITE THE NAME OF A PERSON OR ALWAYS WRITE THE NAME OF A PERSON OR

COMPANYCOMPANY

• WRITE THE AMOUNT PAYABLE CLEARLYWRITE THE AMOUNT PAYABLE CLEARLY

• USE THE MEMO SECTION FOR NOTES!USE THE MEMO SECTION FOR NOTES!

USING A CHECK REGISTERUSING A CHECK REGISTER

• KEEP TRACK OF ALL TRANSACTIONS AND KEEP TRACK OF ALL TRANSACTIONS AND DOCUMENT THEM IN A TRANSACTION OR DOCUMENT THEM IN A TRANSACTION OR CHECK REGISTER (LOG)CHECK REGISTER (LOG)

• SOMETIMES TRANSACTIONS DO NOT SOMETIMES TRANSACTIONS DO NOT POST ON THE SAME DAY AND YOU COULD POST ON THE SAME DAY AND YOU COULD EASILY OVERDRAW YOUR ACCOUNTEASILY OVERDRAW YOUR ACCOUNT

• DOUBLE-CHECK YOUR LOG WITH YOUR DOUBLE-CHECK YOUR LOG WITH YOUR BANK STATEMENT OR ONLINEBANK STATEMENT OR ONLINE

INTERESTINTEREST

• A PERCENTAGE EARNED BASED ON THE A PERCENTAGE EARNED BASED ON THE AMOUNT OF MONEY IN AN ACCOUNTAMOUNT OF MONEY IN AN ACCOUNT– MORE COMMON WITH SAVINGS ACCOUNTSMORE COMMON WITH SAVINGS ACCOUNTS

• WHEN YOU MARRY, CONSIDER A JOINT WHEN YOU MARRY, CONSIDER A JOINT BANK ACCOUNT, THIS COULD PAY YOU BANK ACCOUNT, THIS COULD PAY YOU MORE IN INTERESTMORE IN INTEREST

• INTEREST IS A FORM OF INCOME AND INTEREST IS A FORM OF INCOME AND INTEREST EARNED OVER $1 MUST BE INTEREST EARNED OVER $1 MUST BE REPORTED TO THE IRSREPORTED TO THE IRS

MAKING A DEPOSITMAKING A DEPOSIT

• ONLY ENDORSE (SIGN) A CHECK JUST ONLY ENDORSE (SIGN) A CHECK JUST BEFORE YOU MAKE A DEPOSITBEFORE YOU MAKE A DEPOSIT

• DIRECT DEPOSITDIRECT DEPOSIT– AN ELECTRONIC TRANSFER OF YOUR AN ELECTRONIC TRANSFER OF YOUR

PAYCHECK INTO AN ACCOUNTPAYCHECK INTO AN ACCOUNT– CAN BE SAVINGS, CHECKING, OR BOTHCAN BE SAVINGS, CHECKING, OR BOTH– MAY GIVE YOU ACCESS TO YOUR PAYCHECKMAY GIVE YOU ACCESS TO YOUR PAYCHECK– ELIMINATES TO NEED TO GET TO THE BANK ELIMINATES TO NEED TO GET TO THE BANK

BY A CERTAIN TIMEBY A CERTAIN TIME– PREVENTS CHECKS FROM BEING STOLENPREVENTS CHECKS FROM BEING STOLEN

OVERDRAFTOVERDRAFT

• OCCURS WHEN YOU SPEND MORE MONEY OCCURS WHEN YOU SPEND MORE MONEY THAN YOU HAVE IN YOUR ACCOUNTTHAN YOU HAVE IN YOUR ACCOUNT

• BANKS AND CREDIT UNIONS WILL CHARGE BANKS AND CREDIT UNIONS WILL CHARGE A FEE FOR EVERY TRANSACTION THAT A FEE FOR EVERY TRANSACTION THAT EXCEEDS MONEY IN YOUR ACCOUNTEXCEEDS MONEY IN YOUR ACCOUNT

• OVERDRAFT PROTECTION…OVERDRAFT PROTECTION…– AVAILABLE TO PEOPLE WITH A CHECKING AND AVAILABLE TO PEOPLE WITH A CHECKING AND

SAVINGS ACCOUNT AT THE SAME BANKSAVINGS ACCOUNT AT THE SAME BANK– MONEY IS AUTOMATICALLY TRANSFERRED MONEY IS AUTOMATICALLY TRANSFERRED

FROM SAVINGS TO CHECKING TO COVER THE FROM SAVINGS TO CHECKING TO COVER THE AMOUNT OF THE TRANSACTIONAMOUNT OF THE TRANSACTION

HOW TO WRITE A CHECK…HOW TO WRITE A CHECK…

WRITE A PERSON/COMPANY’S NAME HERE 123.45

Place Signature Here

ONE HUNDRED TWENTY-THREE AND--------------------------45/100

ACCOUNT # OR REASON

DATE CHECK IS SIGNED

WRITING A CHECK…WRITING A CHECK…FILL-IN THE FOLLOWING:FILL-IN THE FOLLOWING:

--TODAY’S DATE TODAY’S DATE -PAY TO -PAY TO DCTSDCTS

-IN THE AMOUNT OF -IN THE AMOUNT OF $36.50$36.50 --SIGN YOUR NAMESIGN YOUR NAME

WRITING A CHECK…WRITING A CHECK…FILL-IN THE FOLLOWING:FILL-IN THE FOLLOWING:

--TOMORROW’S DATE TOMORROW’S DATE -PAY TO COMMERCE BANK -PAY TO COMMERCE BANK

-IN THE AMOUNT OF -IN THE AMOUNT OF $600.00$600.00 - -SIGN YOUR NAMESIGN YOUR NAME

DEPOSIT SLIPSDEPOSIT SLIPS

OPEN WORD DOCUMENTOPEN WORD DOCUMENT

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