Savings & Checking Accounts<br />Chapter 3 Part 1<br />Opening a Checking Account<br />
Learn to open a bank checking account.<br />Learn what is a signature card.<br />Learn the benefits and fees of the accoun...
Terms to know<br />Signature card – a form utilized by a bank to indicate the authorized signature(s) for them to accept o...
ABA Number –The bank Identification Number or Routing Number provided to the bank by the Federal Government.<br />Account ...
Basic Checking MathDo on your own.<br />1. $4,200.00 + $620.00 = <br />2. $342.20 + 0.86 =<br />3. $0.83 + 0.78 =<br />4. ...
1. $4,200.00 + $620.00 =$4,820 <br />2. $342.20 + 0.86 =$343.06<br />3. $0.83 + 0.78 =$1.61<br />4. $162.58 - $16.90 - $0....
Are my deposits safe?<br />FDIC = The Federal Depository Insurance Corporation – Insures your deposits up to $250,000 in e...
Shop for the best checking features & services before opening an account such as:<br />Minimum Balance Requirements<br />I...
Complete the Signature Card<br />SAMPLE Signature Card<br />Include:<br />Your full name<br />Address<br />Home Phone<br /...
Sample Deposit Slip<br />Insert the following information on to the slip:<br />Bills = $121<br />Coins = 15.75<br />Check ...
Savings & Checking Accounts<br />Chapter 3 Part 2<br />Writing Checks<br />
Learn to write checks.<br />Learn to record checks in the check register.<br />Learn the legal issues.<br />Lesson Goals<b...
Check – A legal tender document utilized by a bank depositor to pay for goods or services to a third party utilizing funds...
Postdate –A future date written on a check making the check payable (cashable) to a person or business on or after that fu...
Legal Consequences<br />Writing a check while knowing there are not sufficient funds to cover the written check.<br />If y...
Sample Check Register<br />Sample Register<br />Complete the sample Check Register.<br />Enter an opening deposit of Sept....
Sample Check<br />Complete the check with the following data.<br />Date – Today’s Date<br />Payee – Southern California Ed...
Complete Checks 0002 – 0004 with the following information.<br />0002 – Date – November 10, 2009, Payee – Wal-mart, Amount...
Register Entries<br />Complete the check register with the following entries.<br />Date – November 5, 2009, Description – ...
More Check Register Entries<br />Date – November 20, 2009, Description – Allowance, Amount - $40.00<br />Date – November 2...
Savings & Checking Accounts<br />Chapter 3 Part 3<br />Savings Accounts <br />& Other Bank Services<br />
Learn the Types of Savings Accounts<br />Learn how to Open a Savings Account<br />Learn about other services banks provide...
Terms to Know<br />Savings Account = A bank account that pays interest.<br />ATM = Automated Teller Machine<br />ETF = Ele...
Cashier’s Check = A check guaranteed by the bank generally made out to one payee.<br />Traveler’s Check = A document simil...
Basic Savings Math<br />1.  $   73.00<br />            8.21<br />        426.52<br />            4.28<br />            6.7...
Regular Savings: <br />Generally low or no minimum balance.<br />Lowest interest rate.<br />May provide Checking Overdraft...
Tiered Savings Account:<br />Similar to regular Savings Account.<br />Generally low or no minimum balance.<br />Interest r...
Types of Savings Accounts<br />Money Market Account:<br />May have to maintain a minimum balance.<br />Interest rate varie...
CD (Certificate of Deposit):<br />Deposit cannot be accessed for a specified period of time (without penalty).<br />Must m...
Bank of America: DocumentsB of A Rates.docx<br />Wells Fargo: DocumentsWells Fargo Rates.docx<br />San Diego County credit...
Other Banking Services<br />Loans two basic types:<br />Unsecured – not tied to an asset:<br />Credit Card<br />Personal<b...
Other Services Continued<br />Insurance –<br />Life Insurance<br />Liability Insurance<br />AD&D (Accidental Death and Dis...
Savings & Checking Accounts<br />Chapter 3 Part 4<br />Bank Statements<br />
Learn How to Read a Bank Statement<br />Learn How to Find which checks are outstanding.<br />Learn how to reconcile the ba...
Bank Statement – Detailed record of your accounts for a specified period of time from your bank.<br />Bank Statement Recon...
Checkbook Balance – Money left in the bank’s account per the depositor’s records (Usually their check register).<br />Outs...
Bank Statement<br />Reconciliation Worksheet<br />Let’s Reconcile <br />
Balance	$621.43<br />Deposit   +	$180.27<br />New Bal.<br />Check #1 -	$224.86<br />New Bal.<br />Check #2 - $  12.15<br /...
Checking Math <br />Balance  	$1,323.82<br />Check #1   - $  571.13<br />New Bal.       $  752.69<br />Check #2   - $    7...
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Lesson Plan 3 Savings &amp; Checking Accounts

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Lesson Plan 3 Savings &amp; Checking Accounts

  1. 1. Savings & Checking Accounts<br />Chapter 3 Part 1<br />Opening a Checking Account<br />
  2. 2. Learn to open a bank checking account.<br />Learn what is a signature card.<br />Learn the benefits and fees of the account.<br />Learn how to complete a deposit slip.<br />Lesson Goals<br />
  3. 3. Terms to know<br />Signature card – a form utilized by a bank to indicate the authorized signature(s) for them to accept on signed checks.<br />Forged Signature – A name illegally signed to a check by someone else.<br />Individual Account – an account having one owner authorized to sign a check.<br />Joint Account – an account having a least 2 persons authorized to sign a check.<br />
  4. 4. ABA Number –The bank Identification Number or Routing Number provided to the bank by the Federal Government.<br />Account Number – the number assigned by the bank to your account. <br />More Terms to know<br />
  5. 5. Basic Checking MathDo on your own.<br />1. $4,200.00 + $620.00 = <br />2. $342.20 + 0.86 =<br />3. $0.83 + 0.78 =<br />4. $162.58 - $16.90 - $0.63 = <br />5. $3,148.56 + $841.50 - $100.02 =<br />
  6. 6. 1. $4,200.00 + $620.00 =$4,820 <br />2. $342.20 + 0.86 =$343.06<br />3. $0.83 + 0.78 =$1.61<br />4. $162.58 - $16.90 - $0.63 = $145.05<br />5. $3,148.56 + $841.50 - $100.02 =$3,890.04<br />Solutions<br />
  7. 7. Are my deposits safe?<br />FDIC = The Federal Depository Insurance Corporation – Insures your deposits up to $250,000 in each institution.<br />So if you have more than $250,000 in savings of checking move any amount over to another institution.<br />Things to Know<br />
  8. 8. Shop for the best checking features & services before opening an account such as:<br />Minimum Balance Requirements<br />Interest Rates<br />Check Writing Fees<br />Overdraft protection<br />Annual Fee<br />Debt card fees<br />Internet access<br />Choosing Wisely<br />
  9. 9. Complete the Signature Card<br />SAMPLE Signature Card<br />Include:<br />Your full name<br />Address<br />Home Phone<br />Cell Phone<br />E-mail<br />Signature (how you will sign your checks)<br />Date<br />
  10. 10. Sample Deposit Slip<br />Insert the following information on to the slip:<br />Bills = $121<br />Coins = 15.75<br />Check 1 = 37-502-------$23.37<br />Check 2 = 14-208-------$114.76<br />Check 3 = 17-73--------$264.88<br />Check 4 = 21-706-------$9.52<br />Check 5 = 12- 1430 -----$87.43<br />Total – Bills, Coins & Checks = ?<br />Complete the Deposit Slip<br />
  11. 11. Savings & Checking Accounts<br />Chapter 3 Part 2<br />Writing Checks<br />
  12. 12. Learn to write checks.<br />Learn to record checks in the check register.<br />Learn the legal issues.<br />Lesson Goals<br />
  13. 13. Check – A legal tender document utilized by a bank depositor to pay for goods or services to a third party utilizing funds held by the bank on behalf of the depositor.<br />Payee – the person or business to whom the check was written.<br />Void – The method of canceling a check prior to its use or being settled by the depositors bank.<br />Terms to Know<br />
  14. 14. Postdate –A future date written on a check making the check payable (cashable) to a person or business on or after that future date.<br />Check Register – A tracking document usually located in a check book to log the writing of checks and bank deposits into the affected account.<br />Insufficient Funds- Writing a check with less funds in the depositor’s account than the amount of the check written.<br />More Terms<br />
  15. 15. Legal Consequences<br />Writing a check while knowing there are not sufficient funds to cover the written check.<br />If your checking account does not have overdraft protection your check may not be cashed.<br />Consequences could include:<br />Bank Fee - $15 to $50<br />Returned Check Fee from the business - $25+<br />Collections Fees - $100+<br />Small Claims Court Fees – cost of suit plus 3 times the amount of the check and collections.<br />Bank or pay garnishment.<br />Criminal Action by the District Attorney<br />
  16. 16. Sample Check Register<br />Sample Register<br />Complete the sample Check Register.<br />Enter an opening deposit of Sept. 15, 2009 in the amount of: $300.00<br />Enter interest received on Sept. 30, 2009 in the amount of: $3.56<br />Enter a deposit with yesterday’s date in the amount of: $154.00<br />Enter the sample from the previous slide. “Southern California Edison in the amount of: $235.47<br />What is the balance? $222.09<br />
  17. 17. Sample Check<br />Complete the check with the following data.<br />Date – Today’s Date<br />Payee – Southern California Edison<br />Amount - $235.47<br />Sign Check – using same a on signature card<br />Sample Check<br />
  18. 18. Complete Checks 0002 – 0004 with the following information.<br />0002 – Date – November 10, 2009, Payee – Wal-mart, Amount - $38.67, Memo – Shirt and Pants<br />0003 – Date - November 15, 2009,Payee – Albertson’s, Amount – $25.16, Memo – Food<br />0004 – Date – November 30, 2009, Payee – Toyota Credit – Amount - $225.76, - Memo – car payment<br />Check Writing<br />
  19. 19. Register Entries<br />Complete the check register with the following entries.<br />Date – November 5, 2009, Description – ATM Withdrawal, Payment - $40.00<br />Check #0002<br />Date – November 12, 2009, Description – Debit Starbucks, Amount - $4.75<br />Date – November 14, 2009, Description – Paycheck Amount – 154.00<br />Check #0003<br />Date – November 17, 2009, Description – Debit AM/PM gasoline , Amount - $45.00<br />
  20. 20. More Check Register Entries<br />Date – November 20, 2009, Description – Allowance, Amount - $40.00<br />Date – November 20, 2009, Description – Transfer to savings, Amount - $50.00<br />Date – November 25, 2009, Description – Debit Edwards, Amount – $18.75<br />Date – November 28, 2009, Description – Debit Panda Express, Amount – $6.37<br />Check 0004<br />Date – November 30, 2009, Description – Paycheck, Amount $154.00<br />
  21. 21. Savings & Checking Accounts<br />Chapter 3 Part 3<br />Savings Accounts <br />& Other Bank Services<br />
  22. 22. Learn the Types of Savings Accounts<br />Learn how to Open a Savings Account<br />Learn about other services banks provide to their customers.<br />Lesson Goals<br />
  23. 23. Terms to Know<br />Savings Account = A bank account that pays interest.<br />ATM = Automated Teller Machine<br />ETF = Electronic Transfer of Funds<br />PIN = Personal Identification Number<br />Service Charge = A fee charge by the bank generally for not maintaining the required minimum balance.<br />Withdrawal = The removal of monies from an account.<br />
  24. 24. Cashier’s Check = A check guaranteed by the bank generally made out to one payee.<br />Traveler’s Check = A document similar to a cashier’s check carried on vacations instead of cash guaranteed by a 3rd party which can be canceled if stolen.<br />Stop payment order = a method used by banks to stop payments on a written check (lost, stolen or disputed).<br />More Term to Know<br />
  25. 25. Basic Savings Math<br />1. $ 73.00<br /> 8.21<br /> 426.52<br /> 4.28<br /> 6.76<br /> 172.80<br />2. $2,180.04<br /> 22.62<br /> 7.18<br /> 330.30<br /> .81<br /> 53.12<br />3. $ 214.92<br /> 6.71<br /> 21.18<br /> + 200.00<br />$442.81<br />- $80.00<br />$691.57<br />$2,594.07<br />$362.81<br />
  26. 26. Regular Savings: <br />Generally low or no minimum balance.<br />Lowest interest rate.<br />May provide Checking Overdraft Protection.<br />ATM access – may charge fee or limit # of transactions.<br />May have fees for low balance. <br />Types of Savings Accounts<br />
  27. 27. Tiered Savings Account:<br />Similar to regular Savings Account.<br />Generally low or no minimum balance.<br />Interest rate adjusts to the average daily balance computed over a months period of time.<br />May provide Checking Overdraft Protection<br />ATM access – may charge fee or limit # of transactions depending upon monthly average balance.<br />May or may not have fees for keeping a low balance. <br />Types of Savings Accounts<br />
  28. 28. Types of Savings Accounts<br />Money Market Account:<br />May have to maintain a minimum balance.<br />Interest rate varies based upon maintaining a certain balance. E.g. $1,000, $2,500, $5,000, $10,000, 25,000, $100,000, etc…<br />Money readily available at anytime for any reason.<br />May provide Checking Overdraft Protection.<br />ATM access – generally no fees because of the amount held in the account but could change if balance falls below a defined minimum.<br />May have Credit Card or equity loan tied to it.<br />
  29. 29. CD (Certificate of Deposit):<br />Deposit cannot be accessed for a specified period of time (without penalty).<br />Must meet a minimum deposit amount.<br />Interest rate tiered based upon amount and time (duration).<br />Time (duration) generally 3-months to 3 years.<br />No ATM access<br />No Overdraft Protection<br />Types of Savings Accounts<br />
  30. 30. Bank of America: DocumentsB of A Rates.docx<br />Wells Fargo: DocumentsWells Fargo Rates.docx<br />San Diego County credit Union: DocumentsSDCCU RAtes.pdf<br />Navy Federal Credit Union: DocumentsNavy Federal FCU Rates.docx<br />Internet bank Rates: DocumentsInternet Bank Rates.docx<br />Current Savings Rates<br />
  31. 31. Other Banking Services<br />Loans two basic types:<br />Unsecured – not tied to an asset:<br />Credit Card<br />Personal<br />Student<br />Secured – Generally tied to an asset:<br />Credit Card<br />Personal<br />Equity<br />Auto, Boat, RV, Motorcycle, Etc…<br />Home<br />Business – SBA (Small Business Administration)<br />
  32. 32. Other Services Continued<br />Insurance –<br />Life Insurance<br />Liability Insurance<br />AD&D (Accidental Death and Dismemberment) Insurance<br />Retirement Investments:<br />Regular IRA (Individual Retirement Account)<br />Roth IRA<br />Investment Counseling and Opportunities:<br />Stock Trading<br />Mutual Funds<br />
  33. 33. Savings & Checking Accounts<br />Chapter 3 Part 4<br />Bank Statements<br />
  34. 34. Learn How to Read a Bank Statement<br />Learn How to Find which checks are outstanding.<br />Learn how to reconcile the bank statement.<br />Lesson Goals<br />
  35. 35. Bank Statement – Detailed record of your accounts for a specified period of time from your bank.<br />Bank Statement Reconciliation – The bringing of the banks records into agreement with your records.<br />Reconciled – Means brought into agreement.<br />Terms to Know<br />
  36. 36. Checkbook Balance – Money left in the bank’s account per the depositor’s records (Usually their check register).<br />Outstanding Checks – Checks issued by the drawer (you) but not yet received and paid by your bank.<br />More Terms to Know<br />
  37. 37. Bank Statement<br />Reconciliation Worksheet<br />Let’s Reconcile <br />
  38. 38. Balance $621.43<br />Deposit + $180.27<br />New Bal.<br />Check #1 - $224.86<br />New Bal.<br />Check #2 - $ 12.15<br />Balance =<br />Checking Math <br />Balance $1,323.82<br />Check #1 - $ 571.13<br />New Bal.<br />Check #2 - $ 78.42<br />New Bal.<br />Deposit +$ 306.74<br />Balance<br />Balance $ 83.50<br />Check #1 - $ 6.48<br />New Bal.<br />Deposit + $812.25<br />New Bal.<br />Check #2 - $456.44<br />Balance <br />
  39. 39. Checking Math <br />Balance $1,323.82<br />Check #1 - $ 571.13<br />New Bal. $ 752.69<br />Check #2 - $ 78.42<br />New Bal. $ 674.27<br />Deposit +$ 306.74<br />Balance $ 981.01<br />Balance $621.43<br />Deposit + $180.27<br />New Bal. $801.70<br />Check #1 - $224.86<br />New Bal. $577.14<br />Check #2 - $ 12.15<br />Balance = $589.29<br />Balance $ 83.50<br />Check #1 - $ 6.48<br />New Bal. $ 77.02<br />Deposit + $812.25<br />New Bal. $ 889.27<br />Check #2 - $456.44<br />Balance $432.83<br />

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