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Check It Out 1
Check It Out 2
Purpose
Check It Out will teach you how to use a checking account responsibly.
Check It Out 3
Objectives
By the end of this course, you will be able to:
• State the benefits of using a checking account.
• Determine which checking account is best for you.
• Identify the steps involved in opening a checking account.
Check It Out 4
Objectives (Continued)
• Add and withdraw money from a checking account.
• Reconcile a check register with a bank statement.
Check It Out 5
Checking Accounts
A checking account lets you write checks and use a debit card to:
• Pay bills.
• Make purchases.
Check It Out 6
Benefits of Checking Accounts
• Convenience
• Cost
• Better money management
• Safety
Check It Out 7
Convenience
Checking accounts:
• Give you quick and easy access to your money.
• Let you “direct-deposit” payroll and other checks.
• Eliminate the need to carry a lot of cash.
Check It Out 8
Cost
Using a checking account is usually less expensive than using other services to cash checks or buy money orders.
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Better Money Management
Having a checking account lets you:
• Keep a record of “transactions.”
• Build a positive relationship with your bank.
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Safety
Having a checking account:
• Is safer than carrying large amounts of cash.
• Protects your checks and check card if they are lost or stolen.
• Means your money is insured up to the maximum amount allowed by law.
Check It Out 11
How to Find the Right Checking Account
• Get recommendations.
• Answer the questions on the Determining Your Checking Account Needs Worksheet.
Check It Out 12
Fee Schedule
Some common bank fees include:
• Monthly service fee
• Minimum balance fee
• Automated Teller Machine (ATM) user fee
• Overdraft fee
• Stop payment fee
Check It Out 13
When a Checking Account Isn’t Right for You
If you:
• Don’t write many checks.
• Tend to “bounce” checks.
• Can’t find a checking account for which you can maintain the minimum balance.
Check It Out 14
Types of Checking Accounts
• Free/low-cost checking
• Electronic/ATM checking
• Regular checking
• Interest checking
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Documents Needed to Open a Checking Account
• Photo ID
• Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN)
• A deposit
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Account Verification
The bank or credit union reviews your checking account history to make sure that:
• You will be a responsible customer.
• No one is trying to steal your identity to open an account.
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Signature Card
The document that identifies and contains the signature of the owner of the account.
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Two Ways to Use Money in Your Checking Account
• Write a check.
• Use electronic banking.
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Steps to Writing a Check
• Make sure you have enough money in your account.
• Complete the blank spaces on the check.
• Record the transaction in your check register.
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Sample Check
YOUR NAMEYOUR ADDRESS
YOUR PHONE NUMBER
PAY TO THE ORDER OF
105
00-6879 770
Dollars
FINANCIAL INSTITUTION Your City, State, Zip Code
:00000000 : 0000 0000 0 000 0 0.:
Memo
$
Date:_______
1 38 9
64 5
11 10
27
Check It Out 21
Back of the Check
ENDORSE HERE
DO NOT WRITE, STAMP OR SIGN BELOW THIS LINERESERVED FOR FINANCIAL INSTITUTION USE *
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Sample Checks
YOUR NAMEYOUR ADDRESS
YOUR PHONE NUMBER
PAY TO THE ORDER OF
105
00-6879 770
Dollars
FINANCIAL INSTITUTION Your City, State, Zip Code
:00000000 : 0000 0000 0 000 0 0.:
Memo
$
Date:_______
YOUR NAMEYOUR ADDRESS
YOUR PHONE NUMBER
PAY TO THE ORDER OF
105
00-6879 770
Dollars
FINANCIAL INSTITUTION Your City, State, Zip Code
:00000000 : 0000 0000 0 000 0 0.:
Memo
$
Date:_______2/26/20XX
Coffee Mart 19.75Nineteen and 75/100
Your signaturecoffeemaker
Check It Out 23
Electronic Banking
Electronic banking uses computers to move money into and from your account. It includes:
• Debit card transactions
• Electronic bill pay
• ATM transactions
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Debit Card
A debit card lets you:
• Deposit cash into and withdraw it from your checking account.
• Make purchases at retail locations. BE CAREFUL!
The money is immediately taken out of your account.
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Electronic Bill Pay
A service that automatically takes money out of your account to pay your bills.
• You don’t have to pay for postage.
• You don’t have to worry about late payments.
You can also use bill pay to make payments to businesses to which you owe money.
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Automated Teller Machine (ATM)
1
3
2
4
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Four Ways to Add Money to Your Checking Account
• Cash or check deposit using the teller service
• ATM deposit
• Deposit by mail
• Direct deposit
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Sample Deposit Slip
Your NameYour Address
Your Phone Number
DE
PO
SIT
TIC
KE
T DATE 3/22/20XX DEPOSITS MAY NOT BE AVAILABLE FOR IMMEDIATE WITHDRAWAL
SIGN HERE IF CASH RECEIVED FROM DEPOSIT
YOUR FINANCIAL INSTITUTION
YOUR CITY, STATE Zip Code
DO NOT USE FOR AUTOMATIC PAYMENT OR CHECK
TRANSACTIONS
:00000000 : 00000 00000.:
CURRENCY
COIN
CHECKS
OR TOTAL FROM REVERSE
SUBTOTAL
LESS CASH RECEIVED
NET DEPOSIT
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Sign the Back of the Check
ENDORSE HERE
DO NOT WRITE, STAMP OR SIGN BELOW THIS LINERESERVED FOR FINANCIAL INSTITUTION USE *
Check It Out 30
Sample Deposit Slip Front and Back
Your NameYour Address
Your Phone NumberD
EP
OS
IT
TIC
KE
T DATE DEPOSITS MAY NOT BE AVAILABLE FOR IMMEDIATE WITHDRAWAL
SIGN HERE IF CASH RECEIVED FROM DEPOSIT
YOUR FINANCIAL INSTITUTION
YOUR CITY, STATE Zip Code
DO NOT USE FOR AUTOMATIC PAYMENT OR CHECK
TRANSACTIONS
:00000000 : 00000 00000.:
CURRENCY
COIN
CHECKS
OR TOTAL FROM REVERSE
SUBTOTAL
LESS CASH RECEIVED
NET DEPOSIT
Check
EN
TE
R T
OT
AL
ON
TH
E F
RO
NT
OF
TH
IS
TIC
KE
T
Cen
tsD
ollars
Ch
ecks
Lis
t si
ng
ly
1 2 3 4 5 6 7 8 9 10
11
12
13
14
15
16
TO
TA
L
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ATM Deposits
• Similar to making an ATM withdrawal.
• Use the special deposit envelope.
• Remember to get a receipt.
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Mail Deposits
Include a deposit slip with the check.
NEVER send cash through the mail.
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Direct Deposit
• Checks are deposited directly into your checking account.
• Your money is available immediately.
• It’s the safest way to receive your money.
• Signing up is easy at your financial institution.
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Keeping an Accurate Record of Checking Account Activity
• Record all transactions.
• Record maintenance fees, interest, and other bank charges.
• Review the monthly checking account statement.
• Reconcile your check register with your monthly checking account statement.
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Checking Account Statement
A record of all transactions made during the preceding month, including:
• Cashed checks
• All withdrawals and deposits
• Debit card purchases
• Fees
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Reconciling Your Checking Account
Finding the reasons for the difference between your checkbook register balance and the checking account statement balance caused by:• Transactions on the bank statement that
weren’t recorded in the check register.• Transactions recorded in your check register that were made too late to appear
on the bank statement.
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Checking Account Reconciliation Form
CHECKS OUTSTANDING - NOT CHARGED TO ACCOUNT
$
Check Number
Check Amount
$
Total $
$
$
$
Balance $
* This balance should agree with balance in your check register.
Total $
Bank balance shown on this statement
Subtract withdrawalsoutstanding
Add deposits outstanding
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“Bad” or NSF Check
A check you write when there isn’t enough money in your checking account to cover it.
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Consequences of Writing Bad Checks
• Bad check fees
• Negative activity reported
• Bank closes your account
• Civil and/or criminal prosecution
• Merchants may not accept your checks
• Your credit may be impacted