Post on 17-Jan-2016
transcript
Identify and define the types of accounts available.Analyze account management strategiesCorrectly fill out a check, deposit slip, and check registerCorrectly reconcile a bank statement
Banking in the 21st Century
Types of AccountsBasic checkingFree CheckingInterest-bearingJoint CheckingExpressLifelineSenior/studentMoney Market
Basic CheckingUse to pay billsUse a debit card to pay for daily expensesDirect deposit or minimum balance
required to avoid feesLimited # of checks per month
Per item fee for exceeding the limit
Free CheckingNo monthly service charges or per-item
fees regardless of balance or activityFees for overdrafts
Interest-bearingMinimum balance required to openHigher balance required to avoid feesPays a low interest rate
Joint CheckingOwned by two or more people
Both have equal access to the accountGood Bookkeeping essentialHigh fees for overdrawn accounts
Express CheckingBank primarily by ATM, telephone or
personal computerUnlimited check writingLow minimum balanceLow or no monthly feesLimited access to live teller
LifelineNo-frills account for low income peopleLow feesLow or no minimum balanceAllow a # of checks to be written each
monthRequired by law in some states
Senior/Student AccountSpecial deals for seniors or students
Free checksFree ATM useVarious discounts
Money MarketCombines Checking and SavingHigh minimum deposit to openHigher interest rateLimited checks per month (3-5)
Which Account is for Me?How many checks do you write each
month?Do you want to maintain a minimum
balance to avoid fees?Do you bounce checks occasionallyDo you need a mailed statement each
month?Are you comfortable online or do you want
a person to talk to?
Label the parts of a check1.
7.
3.4.
5.
6.2.
Check #
Amount
Signature (Payor)
Account #Routing #
Written Amount
Payee 8. Date
Checking Terms to knowDebitCredit Outstanding Check
or Deposit
Reconcile a statement
Endorsement
Account Balance
item that doesn’t show on your statement or that hasn’t yet been processed by the financial institution
The amount of $ in the account.
amount subtracted signing the back of a
check matching your records to
the financial institution’s records
amount added
Steps to Reconciling Your Account
1. Compare Account Statement to Check Register
Check off the items that match in the register and on the statement
2. Record any outstanding checks , deposits or fees in the register and on the reconciling worksheet.
3. Complete the reconcile worksheetThe balance in your check register should now match the
balance on your statement reconcile worksheet.
If the numbers don’t match up, try again.