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Checking Accounts
How many of you have checking accounts?
How do you use them?
Safety
Why a checking account?
Convenience
Record Keeping
Saving Money $$$$
Date: record the date in which you write the check.
Do not post-date checks.Payee: person or institution to which you write the
check. Numerical amount: 87.50 if under a dollar put a “0” in front of the decimal
point and insert the work cents ie “$0.85 cents” So that the amount cannot be altered, place the figures close to the dollar sign.
Writing a check… Jan 29, 11
US Cellular 87.50
Illiana Financial Credit Union1600 Huntington DriveCalumet City, IL 60409
ICE Student755 Pulaski RoadCalumet City, IL 60409
Eighty-seven and no cents
Written Amount: Write out the dollar amount, place the word
“and” then put in the cent amount 35/100. ◦ If less than a dollar write “Only eighty-five cents” and
draw a line through the word Dollars ◦ The written amount is the legal amount on a check if the
numerical and written amounts differ.Memo Use this to put account number on or what the
check is for
Signature Matchwith yoursignaturecard
Jan 29, 11
US Cellular 87.50
Eighty seven and 50/100
Cell phone Jennifer Donovan
Your Check Register
CheckNumber Date Description
PayMent
Amt (-) TaxDepositAmt (+)
NewBalance
208 1/15 Best Image 57.13 189.31
DEP 1/17 Paycheck 304.50 493.81
209 1/21The Safe and Secure Bank (Car
Loan) 383.33 110.48
210 1/29 US Cellular – Cell phone bill 87.50 22.98
Write the transaction in your check register right away.
You need to deposit the following two checks and get
cash backXYZ Corporation Payroll check number 02470383
1000 Corporation Court Pay Date: 01/26/11
New Town, USA 10000 Social Security No. 123-45-6789
Pay to the Emily Biegel $ 273.85order of
The amount TWO HUNDRED SEVENTY-THREE AND 85/100 DOLLARS
ADP _Scott Bradford_________ AUTHORIZED SIGNATURE
|’02470383”| |:043301627|: 1008448402|’
Endorse Here
___________________________
___________________________
___________________________Do not write or sign below the line Reserved for financial institution use
Emily BiegelBlank Endorsement – most likely to be stolen• Sign your name the same way it's written on the front
of the check. • Make certain to sign it only when you're ready to
cash it or deposit the money into your account. • Once the check is signed on the back (endorsed), if
you lose it, someone else could get your money.
Check #1
Check #2Grandma Pushover Check number 2389
911Emergency Lane Date: 01/26/11
New Town, USA 10000
Pay to the Emily Biegel $ 153.06order of
The amount ONE HUNDRED FIFTY-THREE AND 06/100 DOLLARS
MEMO: Winter Ball Stuff Grandma Pushover_______ AUTHORIZED SIGNATURE
|’2389”| |:043301627|: 1069448401|’
What do your paychecks and Grandma’s check have in common? (look carefully!)
Endorse Here
___________________________
___________________________
___________________________Do not write or sign below the line Reserved for financial institution use
Restrictive Endorsement - Safest• When you want your check to be very safe, like when you send it to your financial institution in the mail, use a restrictive endorsement.
• Write "for deposit only" and sign underneath. Now the check can only be deposited into your account, and not cashed
For Deposit OnlyEmily Biegel
Routing Transit NumberABA number is nine digits, which appears on the bottom of a check …this identifies which financial institution it is drawn upon.
•This code is also used by the Automated Clearing House to process direct deposits and other automated transfers.
Account Number• An individuals specific bank account number unique to that
persons financial institution.
Routing Transit NumberWhy is it important to know these items?
When may you use them?XYZ Corporation Payroll check number 02470383
1000 Corporation Court Pay Date: 01/26/11
New Town, USA 10000 Social Security No. 123-45-6789
Pay to the ICE Student________________________ $ 273.85order of
The amount TWO HUNDRED SEVENTY-THREE AND 85/100 DOLLARS
ADP _Scptt Bradford_________
AUTHORIZED SIGNATURE
|’02470383”| |:043301627|: 1008448402|’
______Deposit Ticket _______Your nameYour AddressHometown, State 12345
Date: ___January 30, 2011_____________________________
Sign here if cash received from deposit
Safe & Secure FinancialInstitution in Your Community05107373 873 9047
Cash
Checks 02470383
273 85
2389 153 06
Total from other side
Total 426 91
Less cash received 0 00Net deposit 426 91
Making a Deposit
Using the example above…
Do I have to sign the DEPOSIT TICKET?
Deposit Slip when money is received from deposit
Cash
Checks 02470383
273 85
2389 153 06
Total from other side
Total 426 91
Less cash received 150 00Net deposit 276 91
______Deposit Ticket _______Your nameYour AddressHometown, State 12345
Date: ___January 30, 2011________Emily Biegel ___________
Sign here if cash received from deposit
Safe & Secure FinancialInstitution in Your Community05107373 873 9047
Your Check Register
CheckNumber Date Description
PayMent
Amt (-)Ta
xDepositAmt (+)
NewBalance
208 1/15 Best Image 57.13 189.31
DEP 1/17 Paycheck 304.50 493.81
209 1/21The Safe and Secure Bank
(Car Loan) 383.33 110.48
201 1/29 US Cellular – Cell phone Bill 87.50 22.98
DEP 1/30 Paycheck & Ck from Grandma 276.91 299.89
ATM 02/02 ATM 120.00 + 2.25 122.25 177.64
IMPORTANT
YOU MUST KEEP A RUNNING BALANCE IN YOUR CHECK REGISTER AT ALL TIMES!
One Last Endorsement you need to know…
Special Endorsement
•Do this when you want to give someone else the money. •Write "pay to the order of" and that person's name below it. •Then sign your name underneath. •Now that person is the only one who can cash the check.
Your Check Register – Keeping a Running Balance
CheckNumber Date Description
PayMent
Amt (-) TaxDepositAmt (+)
NewBalance
May 26th Balance 527.96
107 5/27 Mrs. Wilson – June Rent 226.00 301.96
DBT 5/28 Foodland 22.52 279.44
108 6/1 Bank of IL 156.32 123.12
Void Void of check 108 156.32 279.44
109 6/1 Bank of IL 165.23 114.21
Reconciling
What does reconciling mean?
Why do you want to reconcile?
What errors can be found?
Reconciling – you are comparing what the bank has received at a certain date with what you have in your check register Bank One
Meadow Street Branch
Hometown, State 12333
Your Name Account Number: 999 6584
1515 My Home Avenue Statement Covers: 8/1 - 8/31
Whiting, Indiana 46394
Total Deposit 1,650.00 Beginning Balance 500.00
Total Payments/Withdrawals 1,515.60 Ending Balance 627.96
Date
Deposits 8/3 Customer Deposit 750.00
8/19 Customer Deposit 800.00
8/20 IRS - Tax Return Electronic Dep 100.00
8/31 August Interest Earned 3.56
Payments/Withdrawals 8/11 ATM Withdrawal (Whiting, In) 200.00
8/11 ATM Fee 1.25
8/17 ATM Withdrawal (Hammond, In) 200.00
8/17 ATM Fee 1.00
8/3 Check 301 53.00
8/8 Check 302 70.00
8/8 Check 303 80.00
8/18 Check 304 257.35
8/18 Check 306 65.00
8/18 Check 307 88.00
8/17 Check 309 500.00
8/30 Maintenance Fee 10.00
Reconciling, step #2List Outstanding Checks Outstanding Deposits
Check Date/Number Amt. Date Amt.
Total Total
Balance Your Checkbook
1. Review your statement for service charges
and other transactions not recorded in
your register. Bring your register up to
date and enter your new balance here. $
With the Bank's Records
2. Enter ending balance from your statement $
3. Enter amount of any outstanding deposits. $
4. Add line 2 plus line 3 and enter sum. $
5. Enter the dollar amt of total outstanding checks $
6. Subtract line 5 from 4. This figure should agree
with your new checkbook balance shown on line 1 $
To deposit a check, you need to endorse it. That means you sign your name in ink on the back of the
check. You must sign your name the same way it's written on the check. If your name is spelled wrong, also sign your name the correct way on the next line.
endorsements
1. Blank Endorsement – most likely to be stolen• Sign your name the same way it's written on the
front of the check. • Make certain to sign it only when you're ready to
cash it or deposit the money into your account. • Once the check is signed on the back
(endorsed), if you lose it, someone else could get your money.
3. Restrictive Endorsement - Safest• When you want your check to be very safe, like
when you send it to your financial institution in the mail, use a restrictive endorsement.
• Write "for deposit only" and sign underneath. Now the check can only be deposited into your account, and not cashed
Answers the questions Who is authorized to make transactions on this account?
Opening a Checking Account - Signature Card
Your First Bank18555 Burnham Avenue
Account Number ______________Lansing, Il 60409
Date: _______________________
SIGNATURE AUTHORIZATION CARD
Name: _________________________
Address: _______________________
______________________________
Phone: ________________________
Social Security No. __ __ __ - __ __ - __ __ __ __
Your are hereby authorized to recognize any of the signatures subscribed here in the payment of funds or the transaction of any business for this account. It is agreed that all transactions between the bank and the depositor shall be governed by the contract printed on the reverse side of this card.
___________________________________
AUTHORIZED SIGNATURE w
Type of accountIndividual JointBusinessPartnership
•Always sign your checks the same way you sign the signature card
•Always use ink
Checking AccountsShopping around for a checking account There are many differences between financial institutions and the services they offer, including the specifics of checking accounts.Here are some things to consider when shopping for a checking account: LocationAvailability of ATMsBranch Offices Hours of Operation Fees
Monthly Fees (Balance Requirement) Per Check Fees Balance Inquiry Fees ATM Fees
Other ChargesOverdraft Charges Compounding Method Stop-Payment Fees Certified Check Fees
Interest +Rate Earned Restrictions Minimum Balance, Minimum Deposit Requirement Deposit Insurance Holding Period for Deposited Checks Special Features Direct Deposit Automatic Payments Overdraft Protection Online Banking Discounts or Free Checking for Students, Seniors or Certain Companies
Overdraft: when you write a check for more that you have in your account. It is known as “bouncing” a check. May be charged a NSF fee (non-sufficient funds fee can be charged this by the bank and by the place you wrote the check to)
Stop-payment Fee: when you write a check and decide that you do not want the bank to disburse that money to the recipient
Common Charges
