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Check in with checking accounts


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Check in with checking accounts

  2. 2.  There are many reasons toopen a checking account,called share draft accountsat credit unions. Like a savings account, yousimply take cash or a checkmade out to the bank toopen an account and makeyour first deposit.OPENING AN ACCOUNT
  3. 3.  And remember to take yourSocial Security number andtwo or more forms ofpicture identification. Once you open the account,you’ll receive a box ofchecks in the mail,preprinted with your nameand address, along with acheck register to recordyour transactions. You’llalso begin getting monthlystatements.OPENING AN ACCOUNT
  4. 4.  Writing a check is likecreating a mini-contractbetween you and theperson or business you’repaying. When you sign at thebottom of the check, you’reagreeing to pay the person,named on the “Pay to theOrder of” line, the amountyou specified, on demand.WRITING THE CHECK
  5. 5.  On demand means that your bankmust honor your check by payingthe specified amount to the payee(the person or business to whomyou wrote to check) when she or hecashes it as long you have enoughmoney in your account to cover it. Get into the habit of recording eachcheck you write into yourcheckbook register, along with yourdeposits and withdrawals. And always write checks in ink.WRITING THE CHECK
  6. 6.  Safety – You don’t have tocarry a big wad of cash whenyou go shopping. Also stolenchecks can be replaced. Lostor stolen cash cannot – it is,simply, gone. Convenience – If you usechecks, you don’t alwayshave to have cash beforemaking a purchase. And youshouldn’t send cash throughthe mail, just checks to paybills.BENEFITS TO USING A CHECKINGACCOUNT
  7. 7.  Easier Budgeting – A checking account can also help youbudget your money. When you use your check register torecord whom you wrote checks to, you’re automaticallykeeping track of where your money is going – making it easierto evaluate your spending habits. Proof of Payment – Checks provide written proof that youmade a payment to someone or a business. Each time thatyou write a check that ultimately clears your account, therewill be several records of it – making it easier to prove thatyou did in fact make a payment, should anyone everychallenge you about it.BENEFITS TO USING A CHECKINGACCOUNT
  8. 8.  Of course, you’re responsiblefor making sure your accountinformation and checks arestored in a safe place. The consequences ofmisusing a checking accountcan be far greater than justpaying fees. If the bank decides you havean excessive number ofoverdrafts, it may close yourchecking account.RESPONSIBILITY
  9. 9.  This could be reported to thecredit bureaus. A history of checking accountabuse can prevent you fromobtaining another checkingaccount and damage yourcredit history. And intentionally writingchecks without enough fundsto cover them is consideredcheck fraud – a seriouscrime.RESPONSIBILITY
  10. 10.  Is it convenient for YOU? Will you beable to get there during the hours it’sopen if need be? Does it have ATMlocations in neighborhoods youfrequent? Does it let you use otherbanks’ ATMs free of charge, severaltimes a month? Does it offer other services you’reinterested in, such as online banking? Do you meet the institution’s agerequirement for a checking account? Ifnot, you’ll need an adult co-signer toopen an account.THINGS TO CONSIDER WHEN OPENINGAN ACCOUNT
  11. 11.  Always write checks in ink. Once you endorse a check(sign the back of it), anyonecan cash it. So don’t endorsechecks you plan ondepositing until you get tothe bank or credit union. Asan added measure ofsecurity, some people like towrite “For Deposit Only” andtheir account numberunderneath theirendorsement.TAKE A FEW PRECAUTIONS
  12. 12.  Keep unused checks in asafe place. Check your statement everymonth to make sure thereare no withdrawals youdidn’t authorize and thatyour activity matches whatyou recorded in yourcheckbook register.TAKE A FEW PRECAUTIONS