CHECKING ACCOUNTS
VIKING INDEPENDENT BANK
MRS. SORRELL
ARE CHECKING ACCOUNTS OBSOLETE?
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One of the safest and easiest ways to manage your money
A safe place to store your money but the money is still very accessible
Alternatives are more expensive and/or less safe
Mismanaging can be very expensive
Needed to get a credit card
Some bills cannot be paid via credit card
Younger adults incur avoidable bank fees
OPENING A CHECKING ACCOUNT
• Convenient location
• Talk to bank personnel about the various checking account
• Use a bank with FDIC insurance
• If you are under 18, the bank may require the account be jointly
owned with an adult
• Provide your “official” signature (do not use a nickname)
MAKING DEPOSITS
• Cash and checks at bank or ATM machine
• Must complete a “deposit ticket”
• Some banks allow deposit of a check image
• Full amount may not be available for several days
• Bank must determine that there are funds in the account of the person or
company who wrote the check
ENDORSING A CHECK
• Signing on the back of the check
• Sign in ink so it cannot be erased
• Must be within 1.5 inches of the trailing edge of the check
• Must endorse with the same name as on the front of the check
• Deposit checks shortly after you receive it
• Checks will not be accepted after 6 months
TYPES OF ENDORSEMENTS
• Blank endorsement
• Can be cashed by anyone who possesses it; use it when you are in the bank ready to
deposit/cash
• Restrictive endorsement
• States “For deposit only”
• Must be put in your account and no one else can cash it
• Endorsement in full
• Used to transfer the check to another person or company
WRITING CHECKS
• Payee—the person or business to whom the check is written
• Written amount—amount of check written in digits
• Legal amount—amount of check written in words; the legal amount prevails
over the written amount
• Drawer—the person who signs the check
KEEPING CHECKBOOK RECORDS
• Record every transaction
• Payee—to whom payment was made
• Purpose of payment
• Amount
• Date
• Check number, if via check
• Must record deposits
• ATM transactions
• Electronic Funds Transfer
• Most commonly recorded in a check register
• Fill out register before you complete the transaction or write the check
RECONCILING THE STATEMENT
• Bank sends account statements monthly
• Transactions grouped by “Debits” and “Credits”
• Debits—decrease in balance
• Checks you have written
• ATM transactions
• Bank fees
• Credits—increases in cash balance
• Deposits made
• Interest earned
MISCELANEOUS
• Stop payment order
• Cancel a check you have written and given to someone else for payment
• Cannot be issued if check has cleared the bank
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If you checks are lost or stolen, you should close your account
Wired money is available as soon as it is received
Certified check guarantees it will not bounce
Stop payments, Certified checks and Bounced checks all have extra fees
subtracted from your account