Chapter 29 Checking Accounts Opening an Account Writing Checks Keeping Records Endorsing Checks...
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Transcript of Chapter 29 Checking Accounts Opening an Account Writing Checks Keeping Records Endorsing Checks...
![Page 1: Chapter 29 Checking Accounts Opening an Account Writing Checks Keeping Records Endorsing Checks Reconciling 21 st Century Banking.](https://reader035.fdocuments.in/reader035/viewer/2022062409/56649d0d5503460f949e23eb/html5/thumbnails/1.jpg)
Chapter 29 Checking Accounts
Opening an Account
Writing Checks
Keeping Records
Endorsing Checks
Reconciling
21st Century Banking
![Page 2: Chapter 29 Checking Accounts Opening an Account Writing Checks Keeping Records Endorsing Checks Reconciling 21 st Century Banking.](https://reader035.fdocuments.in/reader035/viewer/2022062409/56649d0d5503460f949e23eb/html5/thumbnails/2.jpg)
Chapter 29 Checking Accounts
Opening an Account
Writing Checks
Keeping Records
Endorsing Checks
Reconciling
21st Century Banking
Checking account – transactional deposit account at a financial institution that allows for unlimited withdrawals and deposits• Write checks• Avoid carrying cash• Monthly statement• Useful for budgeting
![Page 3: Chapter 29 Checking Accounts Opening an Account Writing Checks Keeping Records Endorsing Checks Reconciling 21 st Century Banking.](https://reader035.fdocuments.in/reader035/viewer/2022062409/56649d0d5503460f949e23eb/html5/thumbnails/3.jpg)
Chapter 29 Checking Accounts
Opening an Account
Writing Checks
Keeping Records
Endorsing Checks
Reconciling
21st Century Banking
Signature card – card signed by individual opening account and kept on file to confirm account• Always sign the same way• Avoid nicknames• Use ink; pencil can be erased• Individual or joint account
![Page 4: Chapter 29 Checking Accounts Opening an Account Writing Checks Keeping Records Endorsing Checks Reconciling 21 st Century Banking.](https://reader035.fdocuments.in/reader035/viewer/2022062409/56649d0d5503460f949e23eb/html5/thumbnails/4.jpg)
Chapter 29 Checking Accounts
Opening an Account
Writing Checks
Keeping Records
Endorsing Checks
Reconciling
21st Century Banking
Make a deposit with a deposit slip.
Availability of funds depends on:1. Day of deposit2. Type of deposit
![Page 5: Chapter 29 Checking Accounts Opening an Account Writing Checks Keeping Records Endorsing Checks Reconciling 21 st Century Banking.](https://reader035.fdocuments.in/reader035/viewer/2022062409/56649d0d5503460f949e23eb/html5/thumbnails/5.jpg)
Chapter 29 Checking Accounts
Opening an Account
Writing Checks
Keeping Records
Endorsing Checks
Reconciling
21st Century Banking
Deposit Slip:
• Date it• Enter cash being deposited• List checks (>3, list on
back, subtotal and carry subtotal to front)
• Subtotal cash and checks• Less cash received - sign• Net deposit
![Page 6: Chapter 29 Checking Accounts Opening an Account Writing Checks Keeping Records Endorsing Checks Reconciling 21 st Century Banking.](https://reader035.fdocuments.in/reader035/viewer/2022062409/56649d0d5503460f949e23eb/html5/thumbnails/6.jpg)
Chapter 29 Checking Accounts
Opening an Account
Writing Checks
Keeping Records
Endorsing Checks
Reconciling
21st Century Banking
Check – written order to a bank to pay a stated sum from the drawer’s account• Write neatly• Use ink• Sign consistently
• Use cursive• Legible figures• Do not erase; VOID
![Page 7: Chapter 29 Checking Accounts Opening an Account Writing Checks Keeping Records Endorsing Checks Reconciling 21 st Century Banking.](https://reader035.fdocuments.in/reader035/viewer/2022062409/56649d0d5503460f949e23eb/html5/thumbnails/7.jpg)
Chapter 29 Checking Accounts
Opening an Account
Writing Checks
Keeping Records
Endorsing Checks
Reconciling
21st Century Banking
![Page 8: Chapter 29 Checking Accounts Opening an Account Writing Checks Keeping Records Endorsing Checks Reconciling 21 st Century Banking.](https://reader035.fdocuments.in/reader035/viewer/2022062409/56649d0d5503460f949e23eb/html5/thumbnails/8.jpg)
Chapter 29 Checking Accounts
Opening an Account
Writing Checks
Keeping Records
Endorsing Checks
Reconciling
21st Century Banking
Check register – personal record of your checking account; paper or electronic• Check number• Date• To whom the check was written• Amount of the check• New balance
![Page 9: Chapter 29 Checking Accounts Opening an Account Writing Checks Keeping Records Endorsing Checks Reconciling 21 st Century Banking.](https://reader035.fdocuments.in/reader035/viewer/2022062409/56649d0d5503460f949e23eb/html5/thumbnails/9.jpg)
Chapter 29 Checking Accounts
Opening an Account
Writing Checks
Keeping Records
Endorsing Checks
Reconciling
21st Century Banking
Endorsement – signing of a document that allows for legal transfer from one party to another
• Trailing edge is the left side of the check when looking at the front of it
![Page 10: Chapter 29 Checking Accounts Opening an Account Writing Checks Keeping Records Endorsing Checks Reconciling 21 st Century Banking.](https://reader035.fdocuments.in/reader035/viewer/2022062409/56649d0d5503460f949e23eb/html5/thumbnails/10.jpg)
Chapter 29 Checking Accounts
Opening an Account
Writing Checks
Keeping Records
Endorsing Checks
Reconciling
21st Century Banking
3 Common Endorsements:
1. Blank - simplest; signature only
2. Restrictive – safer; “For Deposit Only” + signature
3. Endorsement in Full – used to transfer a check to another person; “Pay to the order of _____” + signature
![Page 11: Chapter 29 Checking Accounts Opening an Account Writing Checks Keeping Records Endorsing Checks Reconciling 21 st Century Banking.](https://reader035.fdocuments.in/reader035/viewer/2022062409/56649d0d5503460f949e23eb/html5/thumbnails/11.jpg)
Chapter 29 Checking Accounts
Opening an Account
Writing Checks
Keeping Records
Endorsing Checks
Reconciling
21st Century Banking
Bank Statement/Account Statement – monthly record sent/available to account holder summarizing all transactions• Beginning balance & ending balance• Debits (decreases) & credits (increases)• Cleared checks
![Page 12: Chapter 29 Checking Accounts Opening an Account Writing Checks Keeping Records Endorsing Checks Reconciling 21 st Century Banking.](https://reader035.fdocuments.in/reader035/viewer/2022062409/56649d0d5503460f949e23eb/html5/thumbnails/12.jpg)
Chapter 29 Checking Accounts
Opening an Account
Writing Checks
Keeping Records
Endorsing Checks
Reconciling
21st Century Banking
![Page 13: Chapter 29 Checking Accounts Opening an Account Writing Checks Keeping Records Endorsing Checks Reconciling 21 st Century Banking.](https://reader035.fdocuments.in/reader035/viewer/2022062409/56649d0d5503460f949e23eb/html5/thumbnails/13.jpg)
Chapter 29 Checking Accounts
Opening an Account
Writing Checks
Keeping Records
Endorsing Checks
Reconciling
21st Century Banking
Bank statement Vs. Check Register:• They will probably NOT have same balance• Checks written, but not cleared are called
outstanding• Math errors; forgotten items
“Reconciling” or “Balancing” is important!• Matching up 2 sources of information• Reconcile the differences
![Page 14: Chapter 29 Checking Accounts Opening an Account Writing Checks Keeping Records Endorsing Checks Reconciling 21 st Century Banking.](https://reader035.fdocuments.in/reader035/viewer/2022062409/56649d0d5503460f949e23eb/html5/thumbnails/14.jpg)
Chapter 29 Checking Accounts
Opening an Account
Writing Checks
Keeping Records
Endorsing Checks
Reconciling
21st Century Banking
First Step of Reconciliation:• Identify transactions where you & bank
agree (Register has a column for that)
![Page 15: Chapter 29 Checking Accounts Opening an Account Writing Checks Keeping Records Endorsing Checks Reconciling 21 st Century Banking.](https://reader035.fdocuments.in/reader035/viewer/2022062409/56649d0d5503460f949e23eb/html5/thumbnails/15.jpg)
Chapter 29 Checking Accounts
Opening an Account
Writing Checks
Keeping Records
Endorsing Checks
Reconciling
21st Century Banking
Second Step of Reconciliation:• Add missing transaction from bank
statement to your register• Easy to forget to write down a debit card
transaction• Check receipts• If you disagree, call the bank
![Page 16: Chapter 29 Checking Accounts Opening an Account Writing Checks Keeping Records Endorsing Checks Reconciling 21 st Century Banking.](https://reader035.fdocuments.in/reader035/viewer/2022062409/56649d0d5503460f949e23eb/html5/thumbnails/16.jpg)
Chapter 29 Checking Accounts
Opening an Account
Writing Checks
Keeping Records
Endorsing Checks
Reconciling
21st Century Banking
Third Step of Reconciliation:• Some items in your register may not have
cleared the bank yet
3 Possible Reasons for Discrepancy:1. Bank has a transaction you don’t have2. Amount in register does not agree with
amount on statement3. Math error in register/reconciliation
*RECONCILE MONTHLY!
![Page 17: Chapter 29 Checking Accounts Opening an Account Writing Checks Keeping Records Endorsing Checks Reconciling 21 st Century Banking.](https://reader035.fdocuments.in/reader035/viewer/2022062409/56649d0d5503460f949e23eb/html5/thumbnails/17.jpg)
Chapter 29 Checking Accounts
Opening an Account
Writing Checks
Keeping Records
Endorsing Checks
Reconciling
21st Century Banking
![Page 18: Chapter 29 Checking Accounts Opening an Account Writing Checks Keeping Records Endorsing Checks Reconciling 21 st Century Banking.](https://reader035.fdocuments.in/reader035/viewer/2022062409/56649d0d5503460f949e23eb/html5/thumbnails/18.jpg)
Chapter 29 Checking Accounts
Opening an Account
Writing Checks
Keeping Records
Endorsing Checks
Reconciling
21st Century Banking
Touch-Tone Banking
• Banks began offering account services via touch-tone phone
• Most have moved to internet banking
![Page 19: Chapter 29 Checking Accounts Opening an Account Writing Checks Keeping Records Endorsing Checks Reconciling 21 st Century Banking.](https://reader035.fdocuments.in/reader035/viewer/2022062409/56649d0d5503460f949e23eb/html5/thumbnails/19.jpg)
Chapter 29 Checking Accounts
Opening an Account
Writing Checks
Keeping Records
Endorsing Checks
Reconciling
21st Century Banking
Direct Deposit – credit from the source straight to the banking account• Start of 20th century –cash• Cash replaced by checks • 1970s – direct deposit offered• Highly secure
![Page 20: Chapter 29 Checking Accounts Opening an Account Writing Checks Keeping Records Endorsing Checks Reconciling 21 st Century Banking.](https://reader035.fdocuments.in/reader035/viewer/2022062409/56649d0d5503460f949e23eb/html5/thumbnails/20.jpg)
Chapter 29 Checking Accounts
Opening an Account
Writing Checks
Keeping Records
Endorsing Checks
Reconciling
21st Century Banking
ATM (Automated Teller Machine) – electronic banking outlet; lets customers complete basic transactions w/o a teller• Deposits, withdrawals, transfers• Insert debit card, enter PIN (24 hrs./days)• Fees for not using your bank’s ATM!
![Page 21: Chapter 29 Checking Accounts Opening an Account Writing Checks Keeping Records Endorsing Checks Reconciling 21 st Century Banking.](https://reader035.fdocuments.in/reader035/viewer/2022062409/56649d0d5503460f949e23eb/html5/thumbnails/21.jpg)
Chapter 29 Checking Accounts
Opening an Account
Writing Checks
Keeping Records
Endorsing Checks
Reconciling
21st Century Banking
Automatic Payee-Initiated Payments– sign up to let company pay themselves monthly• Avoid missed payments• Saves postage• Make sure you have enough money in the account!
![Page 22: Chapter 29 Checking Accounts Opening an Account Writing Checks Keeping Records Endorsing Checks Reconciling 21 st Century Banking.](https://reader035.fdocuments.in/reader035/viewer/2022062409/56649d0d5503460f949e23eb/html5/thumbnails/22.jpg)
Chapter 29 Checking Accounts
Opening an Account
Writing Checks
Keeping Records
Endorsing Checks
Reconciling
21st Century Banking
Online Banking – allows individuals to perform banking activities from home or smartphone (mobile banking) via Internet• View all transactions, statements• Transfer funds between accounts• Pay bills (repeat pay)
![Page 23: Chapter 29 Checking Accounts Opening an Account Writing Checks Keeping Records Endorsing Checks Reconciling 21 st Century Banking.](https://reader035.fdocuments.in/reader035/viewer/2022062409/56649d0d5503460f949e23eb/html5/thumbnails/23.jpg)
Chapter 29 Checking Accounts
Opening an Account
Writing Checks
Keeping Records
Endorsing Checks
Reconciling
21st Century Banking
Debit Cards – plastic card that provides the cardholder access to his/her bank account• AKA: cash card, bank card, ATM card, check
card• $ deducted from checking account
immediately • Keep PIN a secret• Report lost/stolen card immediately
![Page 24: Chapter 29 Checking Accounts Opening an Account Writing Checks Keeping Records Endorsing Checks Reconciling 21 st Century Banking.](https://reader035.fdocuments.in/reader035/viewer/2022062409/56649d0d5503460f949e23eb/html5/thumbnails/24.jpg)
Chapter 29 Checking Accounts
Opening an Account
Writing Checks
Keeping Records
Endorsing Checks
Reconciling
21st Century Banking
What is difference between Debit and Credit Cards?
![Page 25: Chapter 29 Checking Accounts Opening an Account Writing Checks Keeping Records Endorsing Checks Reconciling 21 st Century Banking.](https://reader035.fdocuments.in/reader035/viewer/2022062409/56649d0d5503460f949e23eb/html5/thumbnails/25.jpg)
Chapter 29 Checking Accounts
Opening an Account
Writing Checks
Keeping Records
Endorsing Checks
Reconciling
21st Century Banking
*Joint Account- Two owners, one signiture*Checking accounts are demand deposits because….*Some checking accounts “earn” interest and are interest-bearing”*Service Charges are sometimes charged by the bank to you, to cover the paperwork the bank does to maintain the account
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Chapter 29 Checking Accounts
Opening an Account
Writing Checks
Keeping Records
Endorsing Checks
Reconciling
21st Century Banking
What does it mean to over-draw your account?