Transcription
Chapter 29 Checking AccountsOpening an AccountWriting ChecksKeeping RecordsEndorsing ChecksReconciling21st Century Banking
Chapter 29 Checking AccountsOpening an AccountWriting ChecksKeeping RecordsEndorsing ChecksReconciling21st Century BankingChecking account – transactional depositaccount at a financial institution that allowsfor unlimited withdrawals and deposits Write checksAvoid carrying cashMonthly statementUseful for budgeting
Chapter 29 Checking AccountsOpening an AccountWriting ChecksKeeping RecordsEndorsing ChecksReconciling21st Century BankingSignature card – card signed by individualopening account and kept on file to confirmaccount Always sign the same wayAvoid nicknamesUse ink; pencil can be erasedIndividual or joint account
Chapter 29 Checking AccountsMake a deposit with a deposit slip.Opening an AccountWriting ChecksKeeping RecordsEndorsing ChecksReconciling21st Century BankingAvailability of funds depends on:1. Day of deposit2. Type of deposit
Chapter 29 Checking AccountsDeposit Slip:Opening an AccountWriting ChecksKeeping RecordsEndorsing ChecksReconciling21st Century Banking Date it Enter cash being deposited List checks ( 3, list onback, subtotal and carrysubtotal to front) Subtotal cash and checks Less cash received - sign Net deposit
Chapter 29 Checking AccountsOpening an AccountWriting ChecksKeeping RecordsEndorsing ChecksReconciling21st Century BankingCheck – written order to a bank to pay astated sum from the drawer’s account Write neatly Use ink Sign consistently Use cursive Legible figures Do not erase; VOID
Chapter 29 Checking AccountsOpening an AccountWriting ChecksKeeping RecordsEndorsing ChecksReconciling21st Century Banking
Chapter 29 Checking AccountsOpening an AccountWriting ChecksKeeping RecordsEndorsing ChecksReconciling21st Century BankingCheck register – personal record of yourchecking account; paper or electronic Check numberDateTo whom the check was writtenAmount of the checkNew balance
Chapter 29 Checking AccountsOpening an AccountWriting ChecksKeeping RecordsEndorsing ChecksReconciling21st Century BankingEndorsement – signing of a document thatallows for legal transfer from one party toanother Trailing edge isthe left side ofthe check whenlooking at thefront of it
Chapter 29 Checking Accounts3 Common Endorsements:Opening an AccountWriting ChecksKeeping RecordsEndorsing ChecksReconciling21st Century Banking1. Blank - simplest;signature only2. Restrictive – safer;“For Deposit Only” signature3. Endorsement in Full– used to transfer acheck to anotherperson; “Pay to theorder of ” signature
Chapter 29 Checking AccountsOpening an AccountWriting ChecksKeeping RecordsEndorsing ChecksReconciling21st Century BankingBank Statement/Account Statement –monthly record sent/available to accountholder summarizing all transactions Beginning balance & ending balanceDebits (decreases) & credits (increases)Cleared checks
Chapter 29 Checking AccountsOpening an AccountWriting ChecksKeeping RecordsEndorsing ChecksReconciling21st Century Banking
Chapter 29 Checking AccountsBank statement Vs. Check Register:Opening an AccountWriting ChecksKeeping Records Endorsing ChecksReconciling21stCentury Banking They will probably NOT have same balanceChecks written, but not cleared are calledoutstandingMath errors; forgotten items“Reconciling” or “Balancing” is important! Matching up 2 sources of information Reconcile the differences
Chapter 29 Checking AccountsFirst Step of Reconciliation:Opening an AccountWriting ChecksKeeping RecordsEndorsing ChecksReconciling21st Century Banking Identify transactions where you & bankagree (Register has a column for that)
Chapter 29 Checking AccountsSecond Step of Reconciliation:Opening an AccountWriting ChecksKeeping RecordsEndorsing ChecksReconciling21st Century Banking Add missing transaction from bankstatement to your register Easy to forget to write down a debit cardtransaction Check receipts If you disagree, call the bank
Chapter 29 Checking AccountsThird Step of Reconciliation:Opening an AccountWriting ChecksKeeping Records Some items in your register may not havecleared the bank yetEndorsing ChecksReconciling21st Century Banking3 Possible Reasons for Discrepancy:1. Bank has a transaction you don’t have2. Amount in register does not agree withamount on statement3. Math error in register/reconciliation*RECONCILE MONTHLY!
Chapter 29 Checking AccountsOpening an AccountWriting ChecksKeeping RecordsEndorsing ChecksReconciling21st Century Banking
Chapter 29 Checking AccountsTouch-Tone BankingOpening an AccountWriting ChecksKeeping RecordsEndorsing ChecksReconciling21st Century Banking Banks began offeringaccount services viatouch-tone phone Most have moved tointernet banking
Chapter 29 Checking AccountsOpening an AccountWriting ChecksKeeping RecordsEndorsing ChecksReconciling21st Century BankingDirect Deposit – credit from the sourcestraight to the banking account Start of 20th century –cashCash replaced by checks1970s – direct deposit offeredHighly secure
Chapter 29 Checking AccountsOpening an AccountWriting ChecksKeeping RecordsEndorsing ChecksReconciling21st Century BankingATM (Automated Teller Machine) –electronic banking outlet; lets customerscomplete 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!
Chapter 29 Checking AccountsOpening an AccountWriting ChecksKeeping RecordsEndorsing ChecksReconciling21st Century BankingAutomatic Payee-Initiated Payments– signup to let company pay themselves monthly Avoid missed payments Saves postage Make sure you haveenough money in theaccount!
Chapter 29 Checking AccountsOpening an AccountWriting ChecksKeeping RecordsEndorsing ChecksReconciling21st Century BankingOnline Banking – allows individuals toperform banking activities from home orsmartphone (mobile banking) via Internet View all transactions, statements Transfer funds between accounts Pay bills (repeat pay)
Chapter 29 Checking AccountsOpening an AccountWriting ChecksKeeping RecordsEndorsing ChecksReconciling21st Century BankingDebit Cards – plastic card that provides thecardholder access to his/her bank account AKA: cash card, bank card, ATM card, checkcard deducted from checking accountimmediately Keep PIN a secret Report lost/stolen card immediately
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 .
