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Chapter 9

Chapter 9. Checking Accounts and Other Banking Services. Purpose of a Checking Account. Checking accounts allow depositors to write checks to make payments. Check – Demand Deposit –. Life of a Check. Cancelled Checks. Cancelled check –

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Chapter 9

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  1. Chapter 9 Checking Accounts and Other Banking Services

  2. Purpose of a Checking Account • Checking accounts allow depositors to write checks to make payments. • Check – • Demand Deposit –

  3. Life of a Check

  4. Cancelled Checks • Cancelled check – • Cancelled checks can be used as proof of purchase or payment in the event of a dispute • Outstanding check –

  5. Advantages of Checking Accts.

  6. Responsibilities of having a checking account • Checks must be written clearly and you are responsible for keeping _______ _______. • Verify accuracy of _____ ________ each month • Keep _________ _______ as part of permanent records.

  7. Maintaining sufficient funds • Overdraft – • Floating check –

  8. Opening a Checking Account Fill out and sign a verification form -Signature card Submit an initial deposit -Amounts required vary by bank

  9. Parts of a Check • Check number (pre-printed) • ABA number • Maker’s pre-printed name and address

  10. Parts of a check cont. • Date • Payee – • Numeric amount

  11. Parts of a check cont. • Written amount • Drawer or maker’s signature

  12. Parts of a check cont. • Account number (pre-printed) • Memo –

  13. Writing a Check • Always use pen • Write legibly • Sign name exactly as it appears on check and signature card • Avoid mistakes (void checks) • Make sure there are adequate funds to cover check.

  14. 1. Insert date 2. In “cash” section fill in total currency 3. In “checks” section list each check with ABA number and amount. 4. Total currency and checks in subtotal 5. If you want cash back fill in “Less cash received.” 6. Subtract cash received from subtotal and enter amt as net deposit. 7. Sign in front of teller if receiving cash. 8. Keep one copy as proof of deposit. Filling out a Deposit Slip

  15. Using a checkbook register • Checkbook register – • Filling out a checkbook register • In-class simulation

  16. Reconciling Your Account • Reconciliation – • Most banks enclose cancelled checks with statement. • Back of bank statement includes a form to help reconcile you account.

  17. Reconciling cont. • Compare monthly statement and checkbook register. • Check off each item that appears on both the statement and register. • Record in register any fees or interest. • Follow statement’s form to reconcile.

  18. Endorsing Checks • Checks cannot be cashed until they are endorsed. • Blank endorsement – • Special endorsement – • Restrictive endorsement –

  19. Types of Checking Accounts • Joint Account – • Special Accounts • Standard Accounts • Interest-bearing Accounts • Share Accounts

  20. Other Banking Services • Full-service banks offer checking accts, savings accts, credit cards, safe deposit boxes, ATM’s, FDIC insurance, loans, etc. • Certified checks – • Cashier’s checks –

  21. More Banking Services • Money orders – • Debit cards – • Credit cards – • ATM –

  22. More Banking Services • Stop payment orders – • Safe deposit boxes – • Loans and trusts – • Financial services –

  23. Bank Fees • Banks charge some fees to cover operating expenses. • Ex: • Under the Truth-in-Savings Act checking advertised as “free” must carry no hidden charges or conditions.

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