Checking Accounts
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Presentation Transcript
CheckingAccounts And Banks
Terms to Know • Signature Card – completed when opening an account, so the bank can identify the account with the person the account belongs to. • Bank fee –a small amount of money charged by banks to cover their services.
Terms to Know • Overdraft – writing a check for more than the amount in the bank • Check –a piece of paper written for the amount of a purchase to be paid by your bank from your account. Money is withdrawn when check is cashed. • Debit card – used to pay for items. Money is deducted from the account immediately.
Terms to Know • Overdraft fee – the amount the bank charges the depositor for writing a check for more than the balance in the account. Anywhere between $25 and $35 per check.
Terms to Know • Certified check – a personal check that the financial institution guarantees payment. Amount is immediately withdrawn from your account • Cashier’s check – a check that is drawn from one’s account that a bank officer signs
Terms to Know • Bank statement – an account statement sent to the depositor each month that list the deposits and withdrawals as well as interest earned on the account. • Check register – booklet where one keeps a record of all deposits and withdrawals from the account.
Terms to Know • Balance – amount of money in your checking account. • Deposit – putting money into your account • Insufficient funds – not having enough money in your account to pay for the checks already written.
Financial Services • Checking Accounts – called demand accounts – money is available on demand • Savings Accounts – these accounts pay varying amounts of interest. Some have restrictions on when the money can be withdrawn
Financial Services • Debit Cards – looks like a credit card, but the amount is deducted from the account when you present the card. • ATM’s – Automated Teller Machine allows the depositor to bank any time of day or night. Must have a PIN number. Never give pin number to anyone.
Financial Services • Loans – allows the depositor to borrow funds for long and short term goals. • Safe-Deposit Boxes – these are rented to customers in which they can store valuable items or papers.
Other Financial Services • Credit cards • Drive-up Windows • On-line access to one’s account • Financial counseling • Traveler’s checks
Types of Accounts • Some accounts require a minimum balance and others charge a service fee. Others will pay interest. • Individual Account – you are the only person who can write • checks on that account
Types of Accounts • Joint Account – means that you and someone else can use the account. Both deposit and withdraw money.
