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Check It Out: Your Guide to Checking Accounts

This comprehensive guide covers the benefits of using a checking account, steps to open an account, adding and withdrawing money, using an ATM, and more. Learn about the convenience, cost, and better money management associated with checking accounts. Discover different types of accounts and their fees. Find out how to open an account and the importance of identity verification. Utilize check registers and deposit slips for accurate record-keeping. Take advantage of direct deposit and learn how to use ATMs for easy access to funds.

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Check It Out: Your Guide to Checking Accounts

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  1. Check It Out

  2. Welcome • Agenda • Ground Rules • Introductions

  3. Objectives: Part 1 • State the benefits of using a checking account • Determine which checking account is best for you • Identify the steps to open a checking account • Add money to a checking account • Withdraw money from a checking account • Use an Automated Teller Machine (ATM)

  4. What Do You Know? What do you know or want to learn about checking accounts?

  5. Your Experience • Have you ever had a checking account? • What comes to mind when you think about checking accounts?

  6. Benefits of Checking Accounts • What are the benefits of having a checking account? • Convenience • Cost • Better money management • Safety

  7. Convenience • Quick and easy access to funds • Immediate access to direct deposit funds • Reduced risk of losing cash with use of checks and debit cards

  8. Cost • Check-cashing and Money Order Fees: • Check-cashing: 4 x $20 = $80 x 12 mo. = $960/year • Money order: 12 x $5 = $60/year + $960 = $1,020/year • Checking Account Costs: • Money order: 12 x $5 = $60/year + $18 = $78/year • Total savings by using a checking account = • $942

  9. Activity 1: Costs of Checking Versus Not Checking Complete Activity 1 in the Participant Guide. • Read each scenario. • Answer the questions provided. • Compare the costs.

  10. Better Money Management • Maintaining a checking account: • Allows you to monitor your spending and make wise spending choices • Gives you a better ability to stick to a spending plan and save money • Helps you build a positive relationship with your bank for future transactions • Provides a record that you pay your bills on time

  11. Safety • Limit your financial loss by reporting lost or stolen checks or debit cards to your bank as soon as possible • Select an FDIC-insured financial institution • Calculate your insurance coverage with the Electronic Deposit Insurance Estimator (EDIE): www.myfdicinsurance.gov

  12. Finding the Right Checking Account • Get recommendations • Determine your checking account needs • Compare accounts and fees charged

  13. Types of Checking Accounts • Free/Low-cost checking • Electronic-only/ ATM checking • Regular checking • Interest-bearing checking

  14. Fee Schedule • A fee schedule may include: • Monthly service fees • Minimum balance fees • ATM user fees • Overdraft or non-sufficient funds (NSF) fees • Stop payment fees

  15. Activity 2: Checking Account Fees Complete Activity 2 in the Participant Guide. • Read each description. • Fill in the matching fee type.

  16. Activity 3: Choosing the Right Checking Account • Complete Activity 3 in the Participant Guide. • Read the scenario and the sample fee schedule. • Answer the questions provided.

  17. Requirements for Opening a Checking Account • To open an account, you will be asked for: • Photo identification (ID) • Your Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) • Your opening deposit

  18. ID Verification and Checking History • Identity verification protects you! • The bank may check your banking and credit histories. • If you are unable to open an account, ask about “second chance” checking programs.

  19. Check Register • Use a check register to keep track of the money you put into and take out of your account.

  20. Check Register • Record: • Date: 3/20/20XX • Description of Transaction: Opening deposit • Deposit/Credit (+): $200.00 • Balance: $200.00 3/20 Opening Deposit 200 00 200 00

  21. Cash Deposit • When making a cash deposit with a deposit slip: • Make sure the deposit slip has your correct account and address information • Write in the transaction date • Write in the total cash amount • Give the teller your deposit slip and cash

  22. Activity 4: Filling Out a Deposit Slip • Complete Activity 4 in the Participant Guide. • Fill out the sample deposit slip. • Record the transaction in your check register.

  23. Activity 4: Filling Out a Deposit Slip

  24. Check Deposit with a Deposit Slip • Sign (endorse) the back of the check to deposit or cash a check • Write “For Deposit Only” if depositing the check • Fill out deposit slip Your Signature FOR DEPOSIT ONLY

  25. Activity 5: Check Deposit with Cash Back • Complete Activity 5 in the Participant Guide. • Fill out the sample deposit slip. • Record the transaction in your check register.

  26. Activity 5: Check Deposit with Cash Back

  27. Direct Deposit • Direct deposit: • Is a safe way to receive money • Is a convenient and cost effective way to deposit and cash checks • Is an easy and convenient way to access your money • Is predictable and dependable

  28. Automated Teller Machine • ATMs allow you to make deposits and withdrawals 24/7. • ATM parts include: • ATM screen • ATM card slot • ATM keypad • Money dispenser • Deposit slot E A B C D

  29. ATM Deposits • Fill out the deposit slip or envelope, if required • Insert your ATM card as directed • Follow the prompts to deposit your money • Do not forget your card!

  30. Writing a Check • Make sure you have enough money in your account • Complete all the blank spaces on the check • Record the transaction in your check register

  31. Step 1: Make Sure You Have Enough Money • Record every deposit and withdrawal in your check register • Verify the account balance is accurate

  32. Step 2: Complete the Check • Date • Pay to the order of • Amount • Signature • Memo

  33. Preprinted Information • Your name and address • Check number and codes • Bank’s name • Routing number • Account number

  34. Activity 6: Writing a Check • Complete Activity 6 in the Participant Guide. • Fill out the sample check. • Record the transaction in your check register.

  35. Activity 6: Writing a Check 03/20/20XX Coffee Mart 19.75 Nineteen Dollars and 75/100---------------- Sign your name here New coffee maker

  36. Step 3: Record the Transaction 3/26 Coffee Mart 19 75 $235 25

  37. Writing a Check for Cash • Write “Cash” or your name on the “Pay to the Order Of” line 03/20/20XX Cash 40.00 Forty Dollars and 00/100-------------------- Sign your name here.

  38. Withdrawing Money from an ATM • Insert your ATM card • Follow the prompts on thescreen • Take your money and ATM card (if applicable) • If using another bank’s ATM, be aware of the fees your bank and the other bank charges.

  39. Summary • What final questions do you have? • What have you learned? • How would you evaluate the training?

  40. Part 1 Conclusion • You learned about: • The benefits of having a checking account instead of using a check-cashing service • The types of checking accounts available • How to open a checking account • How to write checks • How to use ATM and debit cards • How to make deposits and withdrawals • How to keep accurate records

  41. Objectives: Part 2 • List four types of electronic banking services • Explain how debit cards are linked to checking accounts • Record fees and transactions in your check register

  42. Objectives: Part 2 • Explain overdraft fees and how they affect your checking account • Reconcile a check register with a bank statement • Describe how to manage a checking account wisely

  43. What Do You Know? What do you know or want to learn about checking accounts?

  44. Electronic Banking • Electronic banking includes: • ATM and transactions • Automatic bill pay • Online bill pay • Cell phone banking

  45. Debit Cards • With a debit card, you can: • Withdraw cash from an ATM • Make purchases at retail locations • You must have a Personal Identification Number (PIN) to complete electronic debit card transactions.

  46. Automatic and Online Bill Payment • Automatic bill payment transfers money electronically from your account to pay your bills automatically. • Online bill paymentallows you to designate when bills are paid from your account each month.

  47. Cell Phone (Mobile) Banking • Options may include: • Text messaging with your financial institution • Accessing your online bank account from your cell phone • Instantly paying for purchases using your cell phone

  48. Steps to Keeping Accurate Account Records • Record all transactions in your check register or budgeting software • Record maintenance fees, interest, and other bank charges • Review monthly checking account statements • Reconcile your check register with monthly checking account statements

  49. ATM Receipts • Printed receipts may include: • Transaction amount • Any extra fees charged • Transaction date and time • Transaction type • Account or card code and available balance • ATM location, ID, or code • Bank or merchant name

  50. Record All Transactions in Your Check Register

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