banking services. types of financial institutions commercial banks savings and loan associations...

BANKING SERVICES

Types of Financial Institutions

Commercial Banks

Savings and Loan Associations

Credit Unions

Brokerage Firms

Bank ServicesChecking AccountsInterest on checkingAutomatic deposit and paymentStorage of valuables (safe deposit box)Transfer of moneyOverdraft checkingTraveler’s checksFDIC (Federal Deposit Insurance Corporation)Credit CardsDebit cards/ATMS

Choosing a Checking Account

Monthly feesPer-check chargesBalance requirementsInterest rateHow rates are calculatedHow soon you can draw against a depositBounced check charges

On your checkOn a check you deposit

ATM chargesCheck card chargeStop payment feesCharges for printed checksLocations/number of branchesBank hours

Opening a Checking Account

Signature authorization card

The contract and what it means

Initial deposit

Types of Checking Accounts

Individual Account – has only one holderOnly that person can make withdrawals from the account

Joint Account – two or more individualsEach person that signs the signature card can make withdrawals from the account

Making a Deposit

Writing a deposit slipDeposit slip – a form to be completed when you deposit money in your accountEndorsing a check

Blank endorsement (just your signature)

Depositing a checkDirect depositManual deposit

Deposit slip

Steps in preparing

How to Endorse a Check

3 Types of EndorsementsBlank Endorsements – used only with endorser’s signatureSpecial Endorsements – Endorse in full

Pay to the order ofWilliam FurmanBen Furman

Restrictive EndorsementFor Deposit Only toThe account of Rugcare56-48365-12Ben Furman

ChecksCheckbook-contains checks that are used for making payments in cashKeep accurate records of your transactionsInsufficient funds – fee charged to cover your withdrawal if you overdraft your account.Check stub/check register – used to record the balance of the account, the amount of each check written, to whom the check is written, deposits made to the account, the date, and any charges made by the bank.Service charge – is a fee charged by the bank for having a checking account.Canceled checks – Your checks that the bank has processed and deducted from your account.

Check Register

Fill out the check register either before or immediately after writing a check or using your debit card

Balance – the amount of money on deposit in the account at that time

Every time you write a check or use your debit card deduct this amount from the previous balance in order to calculate the new balance

Check Register

3 Types of Check Registers

Regular Check Register

Side Check Stub

Top Check Stub

How to Write a CheckUse a pen, write in the date (Include the month, day, and the year)After Pay to the Order of, write the name of the payee (the person or business being paid)Write the amount of the check in numbers – Cents should be written as a fraction of 100Use the line marked For, to make a note about the purpose of the transactionSign your name as written on your signature card

Check

Completed Check

Benefits of Using a Debit Card

ConvenienceEliminates the need to carry cashDoesn’t deplete the available cash in your walletCan be used out of town or at locations where checks are not acceptedReduces the possibility of loss or theft of cash

Using a Debit Card

Remember your personal identification number (PIN) and keep it confidential

Enter information about your transaction in your check register

Keep a running balance in your check register of your debit card transactions

Reconciling Your Bank Statement

Look over your bank statement

Reconcile your accountCheck the bank statement

Verify checks and debit card transactions in the check register

Verify deposits

Correct any entry or deposit errors in the check register

Correct any omission errors in the check register

Find outstanding transactions

BANK STATEMENT

Bank Reconciliation Form

“Outstanding

Checks”“Outstanding

Checks”

“Outstanding

Deposits”