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Checking AccountChecking 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• Also called demand deposit because the money can be withdrawn on demand
How can money be withdrawn from a checking account?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• Check Card• ATM Card• Cash back at stores• Checks• Direct Payment• Checks
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Canceled vs. Stop PaymentCanceled vs. Stop Payment
What is a canceled check?What is a canceled check?A canceled check is a check that bears theA canceled check is a check that bears thebank’s stamp. You can use your canceledbank’s stamp. You can use your canceledchecks as proof of purchase or of payment if achecks as proof of purchase or of payment if aDispute arises.Dispute arises.
What is a stop payment order?What is a stop payment order?A stop payment order is a request that the bankA stop payment order is a request that the banknot cash a specific check. The usual reason fornot cash a specific check. The usual reason forstopping payment is that the check has been loststopping payment is that the check has been lostor stolen. Most banks charge a fee for thisor stolen. Most banks charge a fee for thisservice.service.
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Bouncing a CheckBouncing a CheckA check written for more money than your accountA check written for more money than your account
contains is called an contains is called an overdraftoverdraft. A financial institution. A financial institution
receiving an overdraft usually stamps the check withreceiving an overdraft usually stamps the check with
the words “the words “not sufficient fundsnot sufficient funds” NSF ” NSF and returnsand returns
the check to the payee or at the payee’s institution.the check to the payee or at the payee’s institution.
The check is considered “The check is considered “bouncedbounced.” The bank and.” The bank and
the place where the check was written will boththe place where the check was written will both
charge a fee.charge a fee.
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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.
http://banking.about.com/od/checkingaccounts/a/floatingchecks.htm
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.
http://banking.about.com/od/checkingaccounts/a/floatingchecks.htm
Online Bill PayOnline Bill Pay The bank pays your bills The bank pays your bills
for youfor you Anyone, anytime, Anyone, anytime,
anywhere in the U.S.anywhere in the U.S. Set up recurring Set up recurring
payments to be payments to be automatically made automatically made
Receive email reminders Receive email reminders when bills are duewhen bills are due
Sign up for E-Billing to get Sign up for E-Billing to get bills electronically bills electronically delivereddelivered
Keep all bill payment Keep all bill payment history in the same placehistory in the same place
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Online BankingOnline Banking Available 24/7 with an Available 24/7 with an
Internet connectionInternet connection Access and manage Access and manage
your bank accounts your bank accounts and credit cardsand credit cards
Keep an eye on Keep an eye on recent transactionsrecent transactions
Transfer funds Transfer funds between accountsbetween accounts
View current and past View current and past statements statements
View check and View check and deposit slip copies deposit slip copies
Download Download transactions into transactions into money management money management documentsdocuments
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Additional ServicesAdditional 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
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Money OrdersMoney OrdersMoney 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.
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Other Types of ChecksOther Types of Checks A A certified check certified check is a personal is a personal
check that the bank guarantees or check that the bank guarantees or certifies to be good. certifies to be good. Sometimes a payee might want you Sometimes a payee might want you
to get your personal check certified to get your personal check certified to reduce the risk of accepting your to reduce the risk of accepting your check in payment.check in payment.
A A cashier’s check cashier’s check also called a 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.
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Bank FeesBank FeesBank 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.
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Making a DepositMaking a Deposit
1.1. Your account numberYour account number
2.2. Today’s dateToday’s date
3.3. CASH = Total currency CASH = Total currency and coin that is to be and coin that is to be depositeddeposited
1.1. Your account numberYour account number
2.2. Today’s dateToday’s date
3.3. CASH = Total currency CASH = Total currency and coin that is to be and coin that is to be depositeddeposited
1.1. List deposited checks separatelyList deposited checks separately
2.2. Total Deposit = Cash + ChecksTotal Deposit = Cash + Checks
3.3. Indicate if you want cash backIndicate if you want cash back
4.4. Net Deposit = Total Deposit – Cash Net Deposit = Total Deposit – Cash backback
1.1. List deposited checks separatelyList deposited checks separately
2.2. Total Deposit = Cash + ChecksTotal Deposit = Cash + Checks
3.3. Indicate if you want cash backIndicate if you want cash back
4.4. Net Deposit = Total Deposit – Cash Net Deposit = Total Deposit – Cash backback
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Writing a CheckWriting a Check
1.1. Check numberCheck number
2.2. Today’s dateToday’s date
3.3. PayeePayee
4.4. Amount of the check in numbersAmount of the check in numbers **Write as close as possible to**Write as close as possible to the dollar sign so that additional the dollar sign so that additional numbers cannot be added.numbers cannot be added.
1.1. Check numberCheck number
2.2. Today’s dateToday’s date
3.3. PayeePayee
4.4. Amount of the check in numbersAmount of the check in numbers **Write as close as possible to**Write as close as possible to the dollar sign so that additional the dollar sign so that additional numbers cannot be added.numbers cannot be added.
5.5. Amount of the check in wordsAmount of the check in words **Start at the left edge of the **Start at the left edge of the
line directly below “pay to the line directly below “pay to the
order of.” Draw a line between order of.” Draw a line between
the amount and the word “dollars.”the amount and the word “dollars.”
6.6. Your signatureYour signature
7.7. Reminder of what the check paidReminder of what the check paid
8.8. Your account numberYour account number
5.5. Amount of the check in wordsAmount of the check in words **Start at the left edge of the **Start at the left edge of the
line directly below “pay to the line directly below “pay to the
order of.” Draw a line between order of.” Draw a line between
the amount and the word “dollars.”the amount and the word “dollars.”
6.6. Your signatureYour signature
7.7. Reminder of what the check paidReminder of what the check paid
8.8. Your account numberYour account number
**Never use **Never use pencilpencil
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Debit CardsDebit Cards Money comes from Money comes from
checking account checking account Also called ATM or Also called ATM or
Electronic Funds Electronic Funds Transfer (ETF)Transfer (ETF)
Make purchases Make purchases anywhere that anywhere that accepts Visaaccepts Visa®® or or MastercardMastercard®®
Get cash at ATMs all Get cash at ATMs all over the worldover the world
Make Internet and Make Internet and telephone purchasestelephone purchases
Get cash back at Get cash back at participating storesparticipating stores
Money comes from Money comes from checking account checking account
Also called ATM or Also called ATM or Electronic Funds Electronic Funds Transfer (ETF)Transfer (ETF)
Make purchases Make purchases anywhere that anywhere that accepts Visaaccepts Visa®® or or MastercardMastercard®®
Get cash at ATMs all Get cash at ATMs all over the worldover the world
Make Internet and Make Internet and telephone purchasestelephone purchases
Get cash back at Get cash back at participating storesparticipating stores
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Check CardsCheck Cards
Enter PINEnter PIN Swipe cardSwipe card Choose debitChoose debit Enter your PINEnter your PIN
Sign the ReceiptSign the Receipt Swipe card Swipe card Choose creditChoose credit Sign the receiptSign the receipt
Two ways to make Two ways to make purchases:purchases:
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ATM & PINATM & PIN What is an ATM?What is an ATM?
Automated Teller Automated Teller MachineMachine
Make transactions Make transactions without human without human interactioninteraction
Withdrawals, deposits, Withdrawals, deposits, money transfers, money transfers, balance inquiries, and balance inquiries, and check imagingcheck imaging
What is a PIN?What is a PIN? Personal Identification Personal Identification
NumberNumber 4-digit number used to 4-digit number used to
access various accountsaccess various accounts Able to change PIN at Able to change PIN at
most ATMsmost ATMs
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Using the ATMUsing the ATM Available 24/7Available 24/7 ATM transactions are ATM transactions are
usually free at your usually free at your bank’s ATMsbank’s ATMs
Service fees for non-Service fees for non-customers at most customers at most ATMsATMs
Watch for higher ATM Watch for higher ATM fees at some placesfees at some places Convenience StoresConvenience Stores CasinosCasinos
ATMs show the ATMs show the available balance which available balance which may be different from may be different from your actual balanceyour actual balance
Be sure to record all Be sure to record all transactions, transactions, withdrawals, and fees in withdrawals, and fees in account registeraccount register
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Card & Pin SafetyCard & Pin Safety Card SafetyCard Safety
Always sign the backAlways sign the back Never let anyone use Never let anyone use
cardcard Be sure to get it back Be sure to get it back
after each useafter each use Keep receipts of all Keep receipts of all
transactionstransactions Do not carry extra Do not carry extra
credit cards or SSN credit cards or SSN card in walletcard in wallet
Immediately report Immediately report lost or stolen cardslost or stolen cards
Pin SafetyPin SafetyNever tell anyone your PINNever tell anyone your PIN Guard PIN at ATMS and Guard PIN at ATMS and
cash registerscash registers Never write PIN Never write PIN
anywhere in purse or anywhere in purse or wallet wallet
Banks never ask for Banks never ask for check card PINcheck card PIN
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Account RegisterAccount Register
1.1. Check number or transaction typeCheck number or transaction type2.2. Date the transaction was madeDate the transaction was made3.3. Payee and memoPayee and memo4.4. Amount of the transactionAmount of the transaction
**New Balance = Previous Balance – Amount of Transaction**New Balance = Previous Balance – Amount of Transaction5.5. Amount of the depositAmount of the deposit
**New Balance = Previous Balance + Amount of Deposit**New Balance = Previous Balance + Amount of Deposit
**Record all transactions when made**Record all transactions when made
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Savings and Money Market Savings and Money Market AccountsAccounts
What is a Savings What is a Savings Account?Account? Interest-bearing account Interest-bearing account Used to save moneyUsed to save money Minimum balance Minimum balance
required required Limited number of Limited number of
withdrawalswithdrawals
What is a Money Market What is a Money Market Deposit Account?Deposit Account? Interest-bearing accountInterest-bearing account Limited check writingLimited check writing Requires a higher Requires a higher
minimum balanceminimum balance Most banks charge fees Most banks charge fees
on these accounts if the on these accounts if the balance goes below a balance goes below a specified levelspecified level
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