chapter 9 checking accounts and other banking services
Post on 27-Dec-2015
228 Views
Preview:
TRANSCRIPT
Purpose of a Checking Account
Checking accounts allow depositors to write checks to make payments.
Check –
Demand Deposit -
Life of a Check
________ writes a check to a ________ ________ cashes the check at his/her bank Bank that cashed the check returns it to the
_________bank ________bank withdraws $ from _______account to reimburse the other bank Check is then cleared and becomes a
___________ __________
Check Clearing
Cancelled check –
Cancelled checks can be used as proof of purchase or payment in the event of a dispute
Outstanding check –
Advantages of Checking Accts.
_____________way to pay bills Checks are often _______________ Checking accts have a built in ________
__________system Checking acct customers often have access to
other bank services (online banking, ATMs, loans, etc.)
Responsibilities of having a checking account
Checks must be ______ ______ and you are responsible for keeping _________ _______
____________________in your account to cover all purchases.
________ _______ of bank statement each month
Opening a Checking Account
Bank will require __ and _________________
Fill out and sign a verification form
-
Submit an ________ ________
-Amounts required vary by bank
Parts of a Check
Check number:
ABA number (American Banker’s Assoc.)– –
Maker’s pre-printed name and address:
Parts of a check cont.
Written amount:
– Write dollar amount in _______– Use “and” to separate dollars and cents– Express cents in a _______ (over 100)– Start at the far _____ of the line– Draw a line to the end to fill in any extra space– Do not write _________
Writing a Check
1. Always use _____
2. Write _______
3. Sign your name exactly as it appears on _________ _______
4. Avoid mistakes (void checks)
5. Make sure there are adequate funds to cover check.
Paying Bills Online
Bills can be paid electronically using one of two options:1. Register your bank’s routing number and your
account number with the vendor and pay your bill through the __________ _________.
2. Register payee’s (vendors) with your own bank and pay bills using ____________________.
Online bill pay is _______ and convenient. Online bill pay eliminates the need for ______
and ________.
Filling out a Deposit Slip
Complete a deposit slip anytime you add money to your account at the bank.
1. Insert the ______
2. In “cash” section fill in total __________
3. In “checks” section ______________with ABA number and amount.
4. ____ currency and checks and record as _______
5. If you want _____ ____ fill in “less cash received.”
6. __________ cash received from subtotal and enter total amount as net deposit.
Using a checkbook register
Checkbook register –
Used for your ___________ record keeping. Record transactions as they happen. Add or subtract amounts appropriately and
maintain an accurate balance. Use the register to reconcile your account with
the _____ ________at the end of each month.
Reconciling Your Account
Reconciliation –
Most banks enclose cancelled checks with the statement.
The back of bank statement includes a form to help reconcile your account.
The goal is get your ________ balance and the ______ __________ balance to ______.
Endorsing Checks
Checks cannot be cashed until they are endorsed on the _____ by the ______.
Blank endorsement –
Special endorsement –
Restrictive endorsement –
Types of Checking Accounts
Joint Account –
Special Accounts Standard Accounts Interest-bearing Accounts
Share Accounts
Other Banking Services
___________ banks offer checking accts, savings accts, credit cards, safe deposit boxes, ATM’s, online banking, loans, etc.
Guaranteed payments:– Certified checks –
– Cashier’s checks –
– Money orders –
More Banking Services
Stop payment orders –
Safe deposit boxes –
Loans and trusts –
Financial services –
top related