BANKING
AND YOUR
CHECKING
ACCOUNT
For your Green backs
U. S. Federal Mint
U.S. Federal _____ operating
bureau of the Department of the
Treasury makes ________.
 U.S. Bureau of Engraving and
Printing prints new currency.

 New
coins and currency are sent to the
_________________ which distributes
as needed.
Federal Reserve
The FED uses _________ to regulate
the nation’s money supply.
 Provides __________ to depository
institutions.
 ________ and _______ most large
banks.

 Formulates
policy.
and implements money
Cash cards

Consumers purchase cash cards
for a ______________.
Money
is _____ and _______ on
the card’s memory.
Money can be spent.
Some merchants allow customers
to reloaded money on the cash
cards.
Depositing large
amounts of money

If a person makes a deposit of
_______ or more into a bank
account, the bank must notify
the ____________________.
What is a Series EE
savings bond?
Series ___________ are issued by
the ____________.
 They can be purchased for one-half
of the face value.
 Earn interest monthly

 Buy
a $50 Series EE bond for $25
 Within 17 years is guaranteed to reach
face value of ______!
How can you earn
interest on your money?

Certificates of deposit “CD” – ____
liquid
 Earns
higher _______ ____ than Money
Market or Savings accounts.
 Larger amounts of money deposited for a
period of time for a fixed interest rate.
Cannot be withdrawn without penalty!
 31
days to 8 years
 Can be rolled over into another CD
 Must pay ______ on interest earned
How can you earn
interest on your money?

Money market account – ____
liquid
 Earns
______ interest rate than Savings
accounts
 ____ amount of money deposited for a
____ period of time for a ____ interest
rate.
 Must pay _____ on interest earned.
How can you earn
interest on your money?

Savings account – _________
 Earns
____ interest than Certificates of
deposit and Money market with ___
fixed period of time.
 Must pay ____ on interest earned.
Safe-Deposit Box

Safe-Deposit box is a metal box in a
bank’s vault
Requires _ keys
1
required by bank
1 required by customer/owner
Only
owner can access box
Pay a ___ to rent
Store _______ papers – Mortgage
Loan Papers
Automated Teller Machine
No fees if you use ____
own bank
Personal Identification
Number “___”

Keep
it ____!
Checking Accounts
Why use a Financial Institution
• Money deposited is insured
– Banks: ____ insured
– Credit Unions: _____
• Savings will earn interest while the depository
institution “uses” the money to make _____
• Most funds are “____” – you can convert
them to cash _____ and ______. CDs are less
liquid than savings and checking.
Services Offered at Financial
Institutions
• Savings accounts – _____ interest
• Certificate of Deposit (CD)
• Checking accounts – may or may not earn
interest
• Debit Card / ATM Card
• Bill Payment
• ____ (Individual Retirement Account) – _____
• Credit Cards (discussed later)
• Loans – Mortgage, Personal, Automobile
(discussed later)
• Other services such as safe deposit boxes,
financial advice, etc.
Savings Accounts
• Compound interest: interest _____ on interest
• Rate of Return: the APR (______________) received
on money saved
– $1000 earning $20 a year in interest has a 2% rate of return ($20 is
2% of $1000).
• Most savings accounts pay interest ________ (4 times a
year). Interest is __________.
• __________________: money received today is worth more
today than the same amount of money received sometime in
the future
– To determine the time value of depositing money in a savings
account, you need to know the ________ and _________. If the
inflation rate is higher than the interest rate, the money will be
worth ____ at the end of the year than at the beginning.
• Savings Bonds – Series EE – purchase at ½ the face value and
when they mature, they are worth the entire face value. Pay
interest for 30 years.
Rule of 72
• Easy way to calculate how fast your savings will
____________ at given interest rates
• The formula is ___ divided by the _____ rate
earned. For example, at 10%, $100 will double in
a little over 7 years (72/10 = 7.2 years).
– How long would it take $100 to double at a rate of
2%?
– http://www.investopedia.com/video/play/rule-of-72/
Certificate of Deposit (CD)
• ____ are savings instruments that require a
deposit for a period of time during which there is
a penalty for withdrawals.
• Issued with an interest rate that is fixed for the
term of the deposit. This makes them the most
predictable.
• Typically pays the ______ rate of interest because
it is “_________” for a specified time.
• If interest rates are predicted to ____ in the
future, you may want to invest in a _______,
fixed rate CD.
• CD terms range from days to months to years.
Checking Accounts
• Some accounts pay interest (________________) but they
may require a _________ balance and/or limit the amount of
checks written
• Most banks do not _____ the checks written to you but they
must maintain a copy (this saves them money)
• When making a deposit, list the checks and cash separately
on the deposit slip. Checks are normally “_____” (not
available as funds) for ____ days. Cash is immediately
available for use.
• Checks are proof of payment so make sure you ____ them!
• Personal checks will be paid by the bank as long as there is
money in the _____ (if not, you are ______ an insufficient
funds fee ($35.00) and the check is not honored)
• If your balance does not match the bank’s balance, determine
that checks already written have ______. If there is still an
error, let the bank know so they can investigate.
Checks
• Checks are the method in which you make _________
to your checking account
• ______ endorsements (you sign the back of the check
with just your signature) can be cashed by anyone.
• _________ and _________ checks are bank checks and
the funds are _______. Personal checks are not
guaranteed (may not have the money in the account).
• _________ are purchased to pay a specified amount to
a specific person. They are sold for a fee.
• Paychecks are normally ______ deposit – money is
available sooner than if you had to deposit it in person.
• Cashing a check somewhere other than your bank may
incur _____.
Debit/ATM Cards
• Using an electronic device (such as an ___) to make debits
(withdrawals) or credits (deposits) is a form of electronic
funds transfer (___).
• Purchases made with your debit card are _______
immediately from your checking account.
• Debit cards expose you to a greater likelihood of
_____________.
• If you lose your debit or ATM card, notify the bank
________. If reported within __ business days, you are
only liable for up to ____ in unauthorized purchases. After
___ days, you may be liable for the ___________!
• Using an ATM requires a PIN (personal identification
number). Your pin should be a random selection of letters
and numbers but something you can remember (never
write it down and carry it with you). _____________ your
PIN!
• Using another bank’s ATM or store ATM will result in ____.
Cash/Gift Cards
• Cash cards can be _________ or ________
with money to be used to pay for goods and
services.
• Examples of cash cards are _________
(reloadable), _________ (reloadable),
___________ (disposable), etc.
• Cash cards are not the same as debit cards
since they are not ____ to a bank account.
Bill Payment / Funds Transfer
• Bill Payment or funds transfer is a form of EFT.
• Setting up _______________ is a good way to
pay fixed amount bills such as mortgage
payments, car payments, tuition payments,
etc.
• Setting up an automated transfer from
checking to savings each month is a good way
to establish a __________.
Individual Retirement Accounts
• You can set up an IRA at a bank or credit union in addition to
brokerages.
• IRAs are intended to be used at _________. There is a ____
_______ on any money ________ before the age of ___.
• Roth IRAs have the __________ when the money is deposited;
Traditional IRAs have the taxes paid when the money is
________ (at retirement). Both earn interest / dividends.
• The amount you contribute to a traditional IRA reduces your
taxable income by the amount you __________.
• ____ accounts are usually retirement accounts at your job
which you can contribute to as either pre-tax or after-tax
income. Sometimes the employer will ________ up to a
certain %.
Types of Checking Accounts

______________
Checking
 Designed
for
people who write a
____ checks each
month and do not
keep a minimum
amount of money
in the account

_______________
 Account
that earns
interest on the
balance
 Requires
a
________ amount
in the account at
all times
Tools for
Checking Accounts

Check / Debit Card
Can be used _______ Visa
& Mastercard are accepted
 Instantly drafts payment
from your account
 Always sign or write
“________” on the ____!



Check Book

Official check forms from
the bank
Check Register


Used to ______ all
checking transactions
(debits, checks,
deposits, transfers,,
etc.)
Bank Statement
 Official
bank
document listing all
checking ________
 Emailed or mailed
every month
Types of Checks

Personal

________

_________

__________
Click here to
learn about
the difference
between
each type of
check.
Certified Check

Certified Check is a check for
which the bank ________
__________.
It
is ______ by the bank
Funds to cover are immediately
_______ from depositor’s account.
Elements of a Check

_________: the owner of the
account & the person who signs
the check

_________: the person to whom
the check is written

_________: the bank or
financial institution that pays the
check
Cashing Checks



Endorsing a check is
________ that you are
the _______ listed.
_____ the line on the
back of the check
when you cash or
deposit it.
You can also _____
_______a check to
another payee.
ENDORSE CHECK HERE
X_____________________
______________________
______________________
______________________
______________________
______________________
______________________
DO NOT SIGN / WRITE / STAMP BELOW THIS LINE
-------------------------------------------------------------------
Parts of a Check
Today’s Date
Name of Payee
Amount Spelled Out In Words
Amount
Name & Address of Bank
Purpose
Signature
Writing Personal Checks
1.
2.
3.
4.
Use checks in _____ by ______
Always use the ______ date
Write the payee’s name ______
on the line labeled
_________________
Write the amount to be paid in
_______ figures after the printed
dollar sign ___
Writing Personal Checks
5.
6.
7.
______ out in _____ the
amount to be paid clearly on
the line below the payees
name
Indicate the _______ of the
check on the line labeled For
____ your check
Tips for Writing Checks
Write checks in ____
 Only write checks if you have
________ ____ in your account
to cover it
 Use the _______ date

Tips for Writing Checks
Always fill in the _________
 ____ checks on which you
make an ______
 Record _____ payment in your
__________, including _____

Caution!
If you are not careful with your checking
account, you might incur service
charges from the bank!

________ – using more debits or writing more
checks than the money available in your
account

__________ - an order for a bank not to cash
a particular check or set of checks
Reconciliation

Process of
______ your
check ______ to
your _______
bank ________

Verify that _____
and ______
balances ______
http://www.themint.org/teens/writinga-check.html
http://www.themint.org/teens/balanc
e-your-checking-account.html
THEMINT.ORG
Follow the directions to practice writing checks
and learn how to track your checking account!
HOW TO
COMPLETE A
DEPOSIT SLIP
Watch the video on how to complete a deposit
slip and then practice!