Checking Account

1. Checking Accounts
Open, Manage, and Reconcile

2. 1. What is a checking account?
 Having a checking account at a bank or other financial institution allows you
to write checks to pay for goods and services or to get cash.
 A check is a written order instructing your bank to pay money to someone or
an entity.
 To use checks, you need to open a checking account and make regular
deposits into that account. Banks offer several different types of Common
checking options:
 Basic checking account—For someone who primarily wants to use checks to pay
bills or everyday expenses. To avoid fees, some banks require a low minimum
balance.
 Interest-bearing account—Requires a higher balance; interest is usually paid
monthly. A minimum deposit is usually required to open this type of account.
 Joint checking account—For two or more people who are usually in the same
household.

3. To open a checking account
 Visit the financial institution of your choice to speak with a customer service
agent about opening a checking account.
 Bring with you:
 Two forms of Identification (including one with a picture)
 Social Security Number
 Money for your first deposit (cash or check)
 Be prepared to fill out information on a signature card that will remain on file at
the bank. The bank uses the card to verify the signature on checks that bear your
name. Signature cards typically include:
 Your name
 Current address and length of time at the address
 Previous address and length of time at that address
 Type of account (single, joint)
 Your signature
 Once your account is approved, make your first deposit.

4. 2. How do I put money in my account?

5. Deposit Slip
 Deposit slip—A written order instructing your bank to put funds into your
account. You can use a deposit slip to put money into your account.
 Cash
 Checks written to you
 Money orders
 Endorse or sign any check that had been made payable to you before you
deposit it.
 Special section
 On back of check

6. Deposit Slip
 Deposit slips vary from bank to bank. Here's an example:

7. To fill out a deposit slip
 List the amount of money that you want to deposit.
 Most slips have a separate line for cash and checks.
 Cash: $30.00
 Check: $450.55 (Remember to endorse check)
 Enter the subtotal. In this example, $470.55 is the subtotal.
 Enter any amount you want back. In this case, 0.
 Next enter the Total. In this case, $470.55.
 Sign the deposit slip if required. Some require signature only with cash back.
 You give the deposit slip and money to the bank teller.
 Or, you can make deposits using an ATM if you have an ATM card. You'll learn about
using an ATM later in this lesson.

8. Practice
 Use the following information to complete the practice deposit slip on
your Assignment #1: Checking Accounts | Open, Manage, and
Reconcile
$35.00 Cash
$117.00 Check
$20.00 Check
And you want $50.00 cash back from the deposit

9. Online deposit
 Many banks allow online deposits online by uploading a picture of the
check you wish to deposit.
 Mobile deposit is used to describe this type of deposit, which is most
commonly made with a mobile device.
 A special app may be required.
 Check with your bank to see if this is an option.
 The bank may charge an additional fee for mobile deposits. Always
ask before using.

10. 3. How do I get my money out of my
account?

11. Getting checks for a checking account
 When you open a checking account, the bank assigns you a unique account
number.
 The bank will provide temporary checks until you order permanent ones.
 You can order checks from the bank or order from a company.
 Plain checks are usually cheaper than those with fancy designs.
 Checks with carbon copies are usually more expensive than single checks.
 Three sets of numbers will be printed on the bottom of each permanent
check:
Bank’s routing number Your account number Check number
 Your checking account number is important as you make deposits to and
withdrawals from your account.
 The routing number identifies your bank in the world’s banking world.

12. Writing a check
 Checks are convenient when you don't want to carry around a lot of cash or
when you need to pay bills through the mail. Take a few minutes to review
the parts of a check:

13. To write a check
 Enter the date at the top of the check.
 Write the name of the company or person you are paying in the Pay to the order
of line.
 At the end of the Pay to the order of line, write the number amount of the
check. For example, $25.00 or $48.28.
 On the dollars line, write the check amount in words. This confirms the number
amount. For example, Forty-eight and 28/100.
 Write the cents as a fraction.
 “Dollars” is already printed on the check so do not write it.
 If there is any blank space after you write in the amount, draw a line out to the
end (stopping before the word Dollars so no one can add to the amount. For
example, Forty-eight and 28/100-----------------------Dollars.
 Write your signature on the line at the lower right corner of your check.
 In the Memo or For section in the bottom left corner, write what the check is for.
For example, "jeans for John" or “May 2014 rent."

14. Practice
 Using the following information, complete the sample check on your
Assignment#1: Checking accounts | Open, Manage, and Reconcile:
It is July 23rd and you have just bought a new computer from
Computers R Us. You owe Computers R Us $1,489.37

15. Online checking
 Today many banks allow you to write electronic checks to make purchases or
to pay bills.
 Check with your bank to see if this is an option for your checking account and
if there are any fees associated with this service.

16. Withdrawal Slip
 A withdrawal slip is a written order to your bank instructing it to withdraw
funds from your account. Withdrawal slips vary from bank to bank.
 Here's an example:

17. To fill out a withdrawal slip
 List the amount of money that you want to withdraw. For example, $50.00.
 Sign the withdrawal slip.
 Take the slip to a teller at your bank. Or, you may withdraw money using an
ATM.

18. Practice
 Use the following information to complete the practice withdrawal
slip on Assignment #1: Checking Accounts | Open, Manage, and
Reconcile:
Withdraw $115.00 from your account.
Your account number is 12-345-6789.

19. 4. ATM and Debit Cards
 ATM stands for Automated Teller Machine.
 An account, an ATM card, and a Personal Identification Number are required.
 PIN (usually 4 digits).
 PIN and password required for online banking services.
 Safeguard PIN and passwords.
 ATMs are convenient because they are available 24 hours a day at different
locations.
 An ATM card looks like a credit card. Because it is linked to your bank account(s),
you can use it to get cash, deposit funds, and check account balances at an ATM
 A debit card combines the functions of an ATM card and a check. It can be used
like a check to make purchases and pay bills.
 Most banks issue a combination ATM/debit card.
 A credit card linked to your credit card account may be used at an ATM.

20. 5. Balance a checking account
 The most basic and important aspect of checking account management is.
KEEPING enough money in your account to cover ALL your transactions at the
time you make them
 Keeping your account in good standing is your responsibility.
 You will use a checking account ledger to ensure that you do not overdraw
your account.
 The checking account ledger is where you record ALL deposits, record ALL
withdrawals, and keep a running account balance.
 REMEMBER to write down online transactions and debit card transactions.

21. Practice
 Use the following information to complete the practice withdrawal
slip on Assignment #1: Checking Accounts | Open, Manage, and
Reconcile:
 July 23 - Opening deposit $500.00
 July 25 - Deposit birthday money $1,000.00
 July 30 - Check #101 to Computers R Us $1,489.37
 August 2 - Electronic deposit $45.13
 August 7 - Deposit $417.00
 August 8 - Debit card used for gas at convenience store $47.83
 August 9 - ATM withdrawal $25.00

22. Check
Number
Date Description Deposit Amount Withdrawal Amount Balance
Dep 7/23 Opening Dep 500 00 500 00
Dep 7/25 Deposit Birthday Money 1000 00 1500 00
101 7/30 Computer R US 1489 37 10 63
Dep 8/2 Electronic Deposit 45 13 55 76
Dep 8/7 Deposit 417 00 472 76
D/C 8/8 Shell Gas Station 47 83 424 93
ATM 8/9 ATM Withdrawal 25 00 399 93