Banking: 101Banking: 101

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Checking AccountChecking Account What is a Checking Account?What is a Checking Account?

An account where money is deposited and An account where money is deposited and kept for day-to-day expenseskept for day-to-day expenses

Also called demand deposit because the money can be withdrawn on demand.

How can money be withdrawn from a How can money be withdrawn from a checking account?checking account?

In person, at a teller stationIn person, at a teller station Check CardCheck Card ATM CardATM Card Cash back at storesCash back at stores ChecksChecks Direct PaymentDirect Payment

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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 funds” NSF not sufficient funds” 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

Online Bill PayOnline Bill Pay The bank pays your bills for youThe bank pays your bills for you

Anyone, anytime, anywhere in the U.S.Anyone, anytime, anywhere in the U.S. Set up recurring payments to be Set up recurring payments to be

automatically made automatically made Receive email reminders when bills Receive email reminders when bills

are dueare due Sign up for E-Billing to get bills Sign up for E-Billing to get bills

electronically deliveredelectronically delivered Keep all bill payment history in the same Keep all bill payment history in the same

placeplace1212

Online BankingOnline Banking Available 24/7 with an Internet Available 24/7 with an Internet

connectionconnection Access and manage your bank Access and manage your bank

accounts and credit cardsaccounts and credit cards Keep an eye on recent Keep an eye on recent

transactionstransactions Transfer funds between accountsTransfer funds between accounts View current and past statements View current and past statements View check and deposit slip View check and deposit slip

copies copies Download transactions into Download transactions into

money management documentsmoney management documents1111

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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Additional ServicesAdditional ServicesMoney 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 checksA certified check is a personal check that the bank

guarantees or certifies to be good. Sometimes a payee might want you to get your personal check certified to reduce the risk of accepting your check in payment.

A cashier’s check 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 Fees$ Bank 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. 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 number2.2. Today’s dateToday’s date3.3. PayeePayee4.4. Amount of the check in Amount of the check in

numbersnumbers **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. Amount of the check in words5. Amount 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. Your signature6. Your signature

7. Reminder of what the check paid7. Reminder of what the check paid

8. Your account number8. Your account number

**Never use pencil**Never use pencil

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Debit CardsDebit Cards Money comes from checking account Money comes from checking account Also called ATM or Electronic Funds Also called ATM or Electronic Funds

Transfer (ETF)Transfer (ETF) Make purchases anywhere that Make purchases anywhere that

accepts Visaaccepts Visa®® or Mastercard or Mastercard®® Get cash at ATMs all over the worldGet cash at ATMs all over the world Make Internet and telephone Make Internet and telephone

purchasespurchases Get cash back at participating storesGet cash back at participating stores

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Check CardsCheck Cards

1.1. Enter PINEnter PIN Swipe cardSwipe card Choose debitChoose debit Enter your PINEnter your PIN

Sign the ReceiptSign the ReceiptSwipe card Swipe card

Choose creditChoose credit

Sign the receiptSign the receipt

Two ways to make purchases:Two ways to make purchases:

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ATM & PINATM & PIN What is an ATM?What is an ATM?

Automated Teller MachineAutomated Teller Machine Make transactions without human interactionMake transactions without human interaction Withdrawals, deposits, money transfers, balance Withdrawals, deposits, money transfers, balance

inquiries, and check imaginginquiries, and check imaging

What is a PIN?What is a PIN? Personal Identification NumberPersonal Identification Number 4-digit number used to access various accounts4-digit number used to access various accounts Able to change PIN at most ATMsAble to change PIN at most ATMs

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Using the ATMUsing the ATM Available 24/7Available 24/7 ATM transactions are usually free at ATM transactions are usually free at

your bank’s ATMsyour bank’s ATMs Service fees for non-customers at Service fees for non-customers at

most ATMsmost ATMs Watch for higher ATM fees at some Watch for higher ATM fees at some

placesplaces Convenience StoresConvenience Stores CasinosCasinos

ATMs show the available balance ATMs show the available balance which may be different from your which may be different from your actual balanceactual balance

Be sure to record all transactions, Be sure to record all transactions, withdrawals, and fees in account withdrawals, and fees in account registerregister88

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 credit Do not carry extra credit

cards or SSN card in cards or SSN card in walletwallet

Immediately report lost Immediately report lost or stolen cardsor stolen cards

Pin SafetyPin SafetyNever tell anyone your PINNever tell anyone your PINGuard PIN at ATMS and cash Guard PIN at ATMS and cash

registersregistersNever write PIN anywhere in Never write PIN anywhere in

purse or wallet purse or wallet Banks never ask for check card Banks never ask for check card

PINPIN

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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 Transaction

5.5. 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 Savings and Money Market AccountsMarket Accounts

What is a Savings Account?What is a Savings Account? Interest-bearing account Interest-bearing account Used to save moneyUsed to save money Minimum balance required Minimum balance required Limited number of withdrawalsLimited number of withdrawals

What is a Money Market Deposit What is a Money Market Deposit Account?Account? Interest-bearing accountInterest-bearing account Limited check writingLimited check writing Requires a higher minimum balanceRequires a higher minimum balance Most banks charge fees on these Most banks charge fees on these

accounts if the balance goes below a accounts if the balance goes below a specified levelspecified level1313

Sample Bank Service Rates