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CHECKING TODAY

ADVANTAGES OF REGULAR CHECKING ACCOUNTS

•Safe means of transporting money

•Legal proof of payment

•Form or recordkeeping

ADVANTAGES OF eCHECKING ACCOUNTS

•Convenience 24/7

•Ubiquity-available everywhere

•Transaction speed

•Efficiency

•Effectiveness

Cycle of a check

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It takes three to five days for a paper check to clear the system.

Insufficient Funds

•Fees are charged by the store where check was written.

•Fees charged by the bank.

•Accurate recordkeeping is vital to avoid these charges.

•Also can be avoided by having a OVERDRAFT protection account with the bank.

Lost or Stolen Checks•Must stop payment to the check as soon as possible

•Bank will charge a fee

TYPES OF CHECKING ACCOUNTS

BASIS CHECKING ACCOUNT

•Monthly service charge and must maintain a minimum balance

•You will pay for check

•Unlimited check writing

•No interest paid

•May have a fee for each check written

TYPES OF CHECKING ACCOUNTS

Free Accounts

•No monthly service charge

•You will pay for checks

•Unlimited check writing

•No interest paid

•No minimum balance required

OVERDRAFT PROTECTION

•Is a bank loan

•Money is transferred to your account in increments of $100 to cover overdrafts

•Interest will be charged daily until the loans is repaid.

•Prevents fees from stores and the bank when your account is overdrawn

CAUTION:

Not free money and it is not wise to spend money you do not have

DEBIT CARDS•Attached directly to your account

•When used, the money is deducted immediately

•Are easier to get than credit cards

•No ID or check approval is needed at points of purchase

•You do not have to carry checkbooks or cash

•No interest is charges

•More readily accepted at points of purchase than checks or credit cards

•No product or service protection as with credit cards

•Less protection if lost or stolen

•May have fees associated with use or the account

SIGNATURE CARD when Opening an Account

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WRITING CHECKS REVIEW

How to write a check:

http://www.moneyinstructor.com/in/inwritecheck.asp

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OTHERS NUMBERS ON A CHECK

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OTHERS NUMBERS ON A CHECK

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#9 Bank Transit Fractions number

EXAMPLE:

32-73

1110

32 represents the city

73 is the bank number

1110 is the Federal

Reserve routing number

DEPOSIT SLIPS

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•Date your deposit slip

•When depositing cash, list the total amount in the CASH row and in the TOTAL row.

•When depositing check only, be sure to leave the CASH row blank or draw a line through it. Then list the checks separately in the CHECK column

•When depositing checks and cash together. Put the cash total in the CASH row and list each check separately in the CHECK column. And then put the totals of cash and checks in the TOTAL row.•If you have a check and wish to deposit only a part of the amount, write the amount you wish to deposit in the CASH column.•Money orders are handled like checks.

ENDORSING CHECKS

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If your name is misspelled, sign it that way and then sign it again correctly.

As a general practice, do not endorse your check until you are at the place where you will cash it.

BLANK: This endorsement makes the check negotiable and anyone can cash it.

SPECIAL: You can transfer the right to money to someone else and they may cash the check.

RESTRICTED: This endorsement cancels any further use of the check except for collection purposes between banks. This is a safe way to mail deposits (or use the night deposit box).

CHECK WRITING PROCESS

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CHECK WRITING PROCESS con’t

•Be sure to record you debit card transaction into your register.

•Also record automatic payments, such as car loans and insurances.

•If your direct deposit your paycheck be sure to record the amount.

•If your overdraw your account (bounce your check)

•It is against the law

•You will pay large fees to the bank and point of service

•You may endanger your ability to do business with that particular store or business.

SAMPLE BANK STATEMENT QuickTime™ and a

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RECONCILIATIONWORKSHEET

•You need to reconcile your account each month.

•If there are errors in your check register, make those corrections.

•If the bank has made an error, you must call them.

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