The Checking Account

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The Checking Account
The most widely used service that a bank
offers. Funds on demand!
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The Checking Account

• Checking Account A banking service where money
  is
• deposited into an account and checks can be
  written
• to withdraw money from the account. AKA Demand
  Deposit
• Other ways to withdraw money from a checking
  account
• ATM withdrawals
• Debit card transactions
• On-line banking transactions
• A check is a substitute for money.
• Writing checks is safer than carrying cash!

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The Checking Account

• Opening Your Checking Account
• Complete application
• Complete Signature Card
• Make Deposit!

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The Checking Account
Making Deposits If you are depositing checks
into your checking account, the checks must be
endorsed. To endorse means to transfer
ownership. To endorse a check, you must sign the
back of the check.
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The Checking Account
Three types of endorsements 1. Blank
endorsement Simple signature on back.
Sign check as it is written on check. 2.
Restrictive endorsement Restricts further
transfers. A typical endorsement will read For
Deposit Only.
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The Checking Account

• Three types of endorsements
• Special Endorsement. Transfer ownership to
  another
• person. A typical special endorsement will
  read
• Pay to the order of

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The Checking Account

• Using Your Checking Account
• Making Deposits
• Complete deposit slip
• Date
• List cash/currency
• List checks separately
• Indicate cash received back (if desiring cash
  back)
• Indicate total deposit

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The Checking Account

• Using Your Checking Account
• Parts of a check
• Check Number
• ABA Number (American Bankers Association)
• Preprinted Name and Address
• Date
• Payee
• Numeric Amount
• Written Amount Legal amount

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The Checking Account

• Using Your Checking Account
• Parts of a check contd.
• Drawer/Maker
• Account Number
• Memo line

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The Checking Account

• Using Your Checking Account
• Writing Checks
• Use permanent ink
• Write clearly
• Sign name as it appears on signature card
• Avoid mistakes. If you make a mistake write
  VOID
• on the check and start over.
• Make sure funds are available

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The Checking Account
Using a Checkbook Register Checkbook Register
A record keeping system used to keep track of
checks that you have written, debit
card transactions, ATM (Automatic Teller Machine)
trans- actions (deposits and withdrawals), and
on-line banking Transactions. Any transactions
that has affected your account should be Recorded
in the checkbook register.
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The Checking Account

• Using a Checkbook Register, contd.
• What should be included in your check register
• Check Number
• Date
• Description of transaction (I.e., to whom check
  was
• written, debit card transaction, etc.)
• Amount
• Balance A MUST!

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The Checking Account
Debit Card Transactions Debit cards allow you to
make payments for items at any place that a
VISA/Mastercard is accepted. Payments are
deducted directly from your checking
account. Debit Cards are a faster safer way
of writing a check Debit Cards are NOT credit
cards. Payment is deducted immediately. (Credit
cards allow for extra time to pay and incur
finance charges (interest).
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The Checking Account
Checking Account Vocabulary Outstanding Check -
A check that has been written but Has not been
processed (paid) by the bank Cancelled Check A
check that the bank has processed and
paid. Overdraft A check that cannot be
processed and paid by the bank because of
insufficient funds. (AKA Bouncing a check)
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The Checking Account
Checking Account Vocabulary
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The Checking Account
The Bank Reconciliation Process Reconciliation
Bringing into agreement the check register
balance with the bank balance. The banks
balance and your checkbook register balance will
usually NOT agree because of OUTSTANDING CHECKS
and DEPOSITS. You must reconcile your checkbook
register with the Bank statement to prove your
balance and make sure that they are in agreement.