Checking Account Unit

Mrs. Lewis

Kentucky Core Content

Financial Management practices (e.g. maintaining bank accounts,

budgeting, saving, using credit cards wisely, financing large purchases) are methods of achieving short and long-

term goals.

Checking Account Definition:

An account that allows depositors to write checks to

make payments.

CHECK

Written order to a bank to pay the stated amount to the person or business (payee) named on it.

Benefits of a Checking Account

Provides a Convenient way to pay your bills.

Safer than using Cash and handling your money.

Built-in Proof of Payment system that you can use to track your expenses.

Opening a Checking Account:

Provide the Bank with Appropriate Info Fill out and sign a Signature Card

– Purpose of a Signature Card Provides an official signature that the bank can compare to the signature you write on your checks.

– Use your full name (nicknames should be avoided)

Make a deposit– You need money in the bank to spend it!!

Parts of a Check

Kris Garza

541 Crestwood Avenue

Norman, Oklahoma 73070-5549

555-1212

April 13, 20- 101

86-171

1031

Pay to the Order of

Jeans and Me, Ltd. $15.95

DOLLARSSecond National Bank

Norman, Oklahoma

:103101712: 101 “16487214:”

FORKris Garza

Fifteen and 95/100

Jeans

Drawer Date Check Number

Payee Amount in Figures

ABA No.

Drawer’s SignatureAccount NumberCheck

NumberRouting Number

Drawee

Memo

LineAmount in Words

Deposit Ticket/Slip Definition:

Forms in the back of your checkbook that allows you to

put money into your checking account.

Making a Deposit

Fill in the Current Date In the Cash Section: Write the total amount

of Currency (paper money) and coins you are depositing

In the Checks Section: List any checks you are depositing with ABA number and Amount of each check individually.

Total Deposit (Cash + Checks)

Continued…..

If you would like cash at the time of the deposit, fill in the desired amount on the “Less Cash Received” line

Sign name on Line if you are receiving cash back from deposit.

Subtract Total Deposit and Less Cash Received to determine NET DEPOSIT

Always keep a receipt of Deposit

Check Writing Tips:

Fill out ALL parts of the check completely. Always use a Pen!! Write legibly! Sign your name same as the signature card. Never Post Date a check. Always have funds in the account before

you write a check!

Checking Account Tips:

Always record every check you write and deposit you make in the Check Register!

When you make a mistake, write VOID in large letters across the check & write a new one (keep VOIDED Check for Records)

Always keep track of your checkbook and secure your checking account number!!

Check Register Definition:

A booklet provided by your bank for recording your

checking account transactions.

Guidelines for a Check Register Record the Current Amount in your Account at the

top of the “Balance Column” As soon as you write a check or make a deposit,

record it in the register. Checks:

• Write Check number• Write Date• Enter the Payee• Write the amount of Check in the Debit Column• Subtract from Previous Balance

Check Registers:

Deposits• Put a Slash or Mark through the Number Line

• Write the Date

• Write “Deposit” with Detail on the Description Line

• Enter the amount of Net Deposit in Credit Column

• Add to Previous Balance

Checkmark Column will be used for Bank Reconciliation later…..

Endorsing Checks:

Blank Endorsement Restrictive Endorsement Special Endorsement

– Also called an Endorsement-in-Full

– **Never sign a check until you are at the Bank*

Blank Endorsement

Endorsement that only has the Payee’s name

Sign your name on the top of the back of the check.

Do not write below this line

Susan K. Williams

Restrictive Endorsement

Endorsement that restricts the check “FOR DEPOSIT ONLY”

Check can only be deposited into your account, makes it very safe.

Do not write below this line

For Deposit Only

Susan K. Williams

Endorsement in Full (Special)

Endorsement used to transfer a check from one person to another.

Both names must be on the back.

Do not write below this line

Pay to the Order of

Susan K. Williams

Mary Griffen

Other Banking Services

Debit Card Purchases/Credit ATM Cash Withdrawals Pay by Phone or Internet Payments Transfers: Wire or ATM Pre-Authorized Payments Stop Payment Orders Check Returned for Insufficient Funds

The End…..For Now…