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
 ________ writes a check to a ________
 ________ cashes the check at his/her bank
 Bank that cashed the check returns it to the
_________ bank
 ________ bank withdraws $ from _______ account to reimburse the other bank
 Check is then cleared and becomes a
___________ __________

Check Clearing
 Cancelled check –


Cancelled checks can be used as proof of purchase or payment in the event of a dispute
Outstanding check –

Advantages of Checking Accts.
 _____________ way to pay bills
 Checks are often _______________
 Checking accts have a built in ___ _____
__________ system
 Checking acct customers often have access to other bank services (online banking, ATMs, loans, etc.)

Responsibilities of having a checking account
 Checks must be ______ ______ and you are responsible for keeping _________ _______
 ____________________ in your account to cover all purchases.
 ________ _______ of bank statement each month

Maintaining sufficient funds
 Overdraft –
 Floating a check –
 Postdating –

Opening a Checking Account
Bank will require __ and _________________
Fill out and sign a verification form
-
Submit an ________ ________
-Amounts required vary by bank

Parts of a Check
 Check number:
 ABA number (American Banker’s Assoc.)
–
–

Maker’s pre-printed name and address:

Parts of a check cont.


Date :
Payee –
–
–
 Numeric amount
–
–

Parts of a check cont.
 Written amount:
–
–
Write dollar amount in _______
Use “and” to separate dollars and cents
– Express cents in a _______ (over 100)
– Start at the far _____ of the line
– Draw a line to the end to fill in any extra space
– Do not write _________

Parts of a check cont.

Maker’s signature:
 Account number:
–
 Memo :
–

Writing a Check
1.
2.
3.
4.
5.
Always use _____
Write _______
Sign your name exactly as it appears on
_________ _______
Avoid mistakes (void checks)
Make sure there are adequate funds to cover check.

Paying Bills Online
 Bills can be paid electronically using one of two options:
1.
Register your bank’s routing number and your account number with the vendor and pay your bill through the __________ _________ .
2.
Register payee’s (vendors) with your own bank and pay bills using ____________________ .
 Online bill pay is _______ and convenient.
 Online bill pay eliminates the need for ______ and ________.

Filling out a Deposit Slip

1.
2.
3.
Complete a deposit slip anytime you add money to your account at the bank.
Insert the ______
In “cash” section fill in total __________
In “checks” section ______________ with ABA number and amount.
4.
5.
6.
____ currency and checks and record as _______
If you want _____ ____ fill in “less cash received.”
__________ cash received from subtotal and enter total amount as net deposit.

Using a checkbook register
 Checkbook register –
 Used for your ___________ record keeping.
 Record transactions as they happen.
 Add or subtract amounts appropriately and maintain an accurate balance.
 Use the register to reconcile your account with the _____ ________at the end of each month.

Reconciling Your Account
 Reconciliation –
 Most banks enclose cancelled checks with the statement.
 The back of bank statement includes a form to help reconcile your account.
 The goal is get your ________ balance and the
______ __________ balance to ______ .

2.
3.
4.
Reconciling
1.

Endorsing Checks
 Checks cannot be cashed until they are endorsed on the _____ by the ______ .
 Blank endorsement –
 Special endorsement –
 Restrictive endorsement –

Types of Checking Accounts
 Joint Account –
 Special Accounts
 Standard Accounts
 Interest-bearing Accounts
 Share Accounts

Other Banking Services
 ___________ banks offer checking accts, savings accts, credit cards, safe deposit boxes, ATM’s, online banking, loans, etc.
 Guaranteed payments:
– Certified checks –
–
Cashier’s checks –
– Money orders –

More Banking Services
 Debit card –
 Credit card –
 ATM –
 Overdraft protection –

More Banking Services
 Stop payment orders –
 Safe deposit boxes –
 Loans and trusts –
 Financial services –

Bank Fees
 Banks charge ______ to cover their operating expenses.
 Common fees include:
–
–
–
–