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