checking accounts
DESCRIPTION
TRANSCRIPT
CHECKING ACCOUNTS
Objectives
Checking accounts Checkbook Other debits Protecting Your Data Endorsements
Checking account
Demand deposit Check
Written order to bank to pay the stated amount to the person
Benefits: Easier than carrying money Cancel checks – proof of payment
FDIC – insures up to $100,000
Opening a checking account
Little money Given blank checks Monthly fee Signature card
Compares signature
Checkbook
Checkbook register Tool used to track checking
account transactions Deposits
Money added to the checking or saving account
Running balance Shows amount of money in account
Other debits
Automatic withdrawals Money deducted from account and
transferred to another party ATM Fees
Writing checks
Check Legal document used to transfer
money Payee
Who check is to
Rules for Writing checks
Current date Post-dated checks – future date
Never leave anything blank Fill in extra spaces with lines or
zeroes Sign name exactly as signature
card Memo line is optional VOID – if mistake
Protecting Your Data
Check fraud Someone alters check to get data
or money Forgery
Signs another’s name
How to keep safe?
Keep checks in safe place Protect pin number Never give out bank account
number Use credit card over Internet
Instead of debit card
Making Deposits
Endorsements Signature on back to
authorize bank to cash or deposit check
Types of Endorsements
Blank Just a signature
Restrictive Purpose of transfer “For deposit only”
Special Being transferred to someone else “Pay to the order of”
Extras
Automatic Deposits Money electronically placed in
account
Bank Services
Safety Deposit Box Important documents Safe from fire or theft
Bounced check NSF – Non sufficient funds Over draft protection sometimes
Stop Payment Banks told not to honor check
More Bank Services
Cashier’s Checks Check issued against bank funds
Money Order Type of check used to make a
payment
End