Opening a Checking Account
AdvantagesTypes of Checking AccountsOpening an AccountEndorsementsRecording the Deposit
Advantages of a Checking Account
Convenience Write checks and pay
bills by mail Automatic payments
through EFT Safety
Risk of losing cash by fire, theft, or carelessness
Greater temptation of spending cash
Safely send check through mail
Insured by FDIC
Advantages of a Checking Account
Proof of Payment A cancelled check
is legal proof of payment
Record of Finances Record of deposits
and payments will help in managing your money.
Types of Checking Accounts
Regular CheckingNo service charge if you maintain balance
Interest-BearingEarns interest, usually requires a minimum
SpecialCharge per check writtenService chargesStudent Accounts, etc.
Opening a Checking Account
Eligibility requirement – 18 years oldComplete a signature card
Used to compare with those on your checksUse same signature on card as on checksOther person on your account must also
sign (joint account)Make Deposit
Fill out a deposit slip (currency, coins, and checks)
Making Deposits
Making Deposits
To make a deposit, you fill out a deposit slip and endorse, or sign, the back of the check.
Endorsing Checks
Endorse Write name across left
end of check – allowed 1 ½ inch space
Purposes Allows the recipient to
cash, deposit, or transfer it to someone else.
Legal evidence that the receiver cashed or transferred the check
Types of Endorsements
BlankOnly the endorser’s nameMakes a check payable to anyone who has
it.Special
“Pay to the order of ______”, then the signature of the endorser.
Restrictive “For Deposit Only” then sign
Here are some tips for endorsing a check: Don’t endorse a check until you’re ready to cash or
deposit it. Write your signature on the left end of the back of
the check, on the lines printed for endorsement.
Use only a pen so that your signature cannot be erased.
Tips for Endorsing a Check
Here are some tips for endorsing a check: If you are depositing a check by mail, write “For
deposit only” directly above your signature. Sign your name exactly as it is spelled on the front of
the check. If your name has been misspelled on the front, the endorsement should include the incorrect spelling, followed by your correct signature.
Tips for Endorsing a Check
Recording the Deposit
When you make a deposit, get a receipt
Record deposit in your check register (or check stub).
Using the Check Register
Using a Check Register
Before you write a check, write the date, the check number, the name of the party who will receive the payment, and the exact amount in your check register.
Filling Out a Bank Reconciliation Form
Savings Plans and Payment Methods
To reconcile your account is to bring your check register into agreement with the bank statement for your account.