Checking
Account
Opening a checking account:
One of the safest and easiest ways to manage your money is through a checking account. When you open a checking account make sure you have the proper forms of identification, such as driver’s license and social security card. By having a checking account you can avoid carrying large amounts of cash by simply writing a check or using your debit card.
Deposits or credits to your account are when you add to the current balance, some examples of deposits are cash, check and direct deposits.
Withdrawals and debits are when you take money out of your account by using an ATM, debit card or writing a check.
Many stores have technology to directly withdrawal funds from your account when you write a check or use your debit card. Some stores send through an authorization which places a hold on the funds until the withdrawal from the account is complete. Most financial institutions are on real time, so there is not a delay but if you mail in a check or use bill pay online to pay bills it might take a few days to be deducted from your account.
Account Types:
Checking accounts, simple right? WRONG, there are so many different types of checking accounts how do you know what type to get? Some things to consider when choosing a checking account:
Minimum Balance
Restricted amount of withdrawals Monthly Service Fees
Dividend or interest rate
Determine how often you will use the account, if you will use online banking, mobile banking, bill pay, debit cards, ATM and direct deposit. Many financial institutions may charge you for these additional services so if you know what products and services you will use it will make choosing a checking account easier.
Gather information from three different financial institutions, including at least one bank and one credit union. Compare and analyze your results.
How does this all work???
Deposit/Credit
Let’s start with how we make a deposit. Now that you have a checking account that fits your needs you need to put money in it. The most common way to deposit money into your
checking account is with cash, checks or direct deposits. Cash is usually the easiest and safest. If you deposit a check the financial institution may need to place a hold on the check depending on the type of check and amount. For example a personal check that is written for a large amount could be placed on a hold by your financial institution for the maximum amount of days allowed by Regulation CC. Placing a hold on the account for the check presented does not guarantee payment of the check. You are responsible for repayment of the item if returned. You can also set up a direct deposit from your employer so your payroll with automatically be deposited into your account. When you make a deposit you should fill out a deposit slip so the person processing your transaction knows exactly what you are expecting them to do.
Checking Account Deposit Ticket
Deposits may not be available for immediate withdrawal.
Date:__________________________
Sign on line above only if cash is received.
275979364 1234567 Dollar Cents Cash Checks Total Deposit Less Cash Net Deposit Endorsing a check
The reason you endorse a check is to either deposit it or to sign it over to someone else. When endorsing a check, you turn the check over, and sign it on the back of the check. You should sign your name exactly the same way it is written on the front of the check.
Once you turn your check over, place it so it faces up, like this: Wait to endorse the check until you get to your financial
Withdrawal/Debits
Now that you have money in your checking account how can you get it out? You can do a withdrawal from the financial institution or Automated Teller Machine (ATM), write a check or use a debit card at a merchant as a Point of Sale Transaction.
ATM’s allows you to do simple transactions such as depositing or withdrawing money from your account. ATM’s are easy to use but you have to be aware of fees. The ATM service provider may charge you a fee along with your financial institution so it’s important to find out how to avoid these fees when choosing a financial institution and type of account. When using an ATM, be aware of your surroundings, make sure no one is watching you put your pin number in and be sure to take your receipts and money. If the ATM looks suspicious or not safe use a different machine.
Writing a check is another way you can get money out of your account. By writing a check you are giving your financial institution a command to pay that amount of money to the person you wrote it to from your account. When writing a check be sure to :
Write clearly and neatly Always use ink
Sign your name consistently the same
Do not use nicknames when writing or signing a check
If you make a mistake VOID the check by writing VOID large on the check and shred Draw a line after the name of the Payee & written amount. This is done to prevent
alterations, such as adding a Payee or an amount. This is a sample of a properly written check:
Steven Jacobson 101
111 E. Main ST Date: September 1, 2011
Stevens Point, WI 54482
Pay to the
Order of __Joe’s Construction Company---_______________ One Hundred Fifty Two and 34/100---Dollars
For:__Work on Roof_____________ ____
Steven Jacobson
________275979364 1234567 101
Debit Card transactions also known as Point of Sale Transactions will come directly out of your checking account unlike credit cards that you get a bill for later. Typically debit card
transactions have a daily limit so if you are making a large purchase, the transaction may not go through when you try to use your card. There are two ways to process a debit card at a
merchant, either as a debit or credit. What is the difference?
A debit card can be processed as a debit, you are required to enter your Personal Identification Number (PIN) for each transaction. You are potentially less protected using a PIN than if you process your debit card as a credit. Processing a debit card as a credit will require you to sign for the transaction.
For the store the difference between debit and credit is typically a fee. Some companies may be charged less by the companies which process their card transactions for running cards as debits, so if you are visiting a small, locally owned business, you may want to consider selecting the debit option as a courtesy. Most large companies do not give you the choice on the screen but ask the cashier and they will help you process the transaction as a credit.
Keeping Record-
You should keep a record of every transaction you make, whether that is a deposit or
withdrawal. Online banking has helped people balance their register but it is important to keep a written record.
Check
Number Date
Description of
transaction Debits(-) Credits (+) Balance
101 9/1 Joe’s Construction Co. $152.34 -152.34
347.66
ATM 9/5 Cash $40.00 -40.00
307.66
Debit card 9/5 Abercrombie- clothes 35.76 -35.76
271.90 9/7 Payday 265.49 265.49 537.39 102 9/9 Element-phone bill 79.55 -79.55 457.84 -403.07
Debit Card 9/10 Best Buy-new ipod 403.07 54.77
Debit Card 9/10 The Store- Gas 40.00 -40.00
14.77
What if Joe doesn’t cash his check until 9/20 and your balance online says you have $167.11? This is why it is important to write down all your transactions!!! Say you looked online and saw you have $167.11 so you pay your car insurance with your billpay online in the amount of $125.90. You balance online now says $41.21 and Joe now cashes the check, your balance now is -111.13.
Balance your monthly statement when you receive it in the mail or online as an E-Statement. Any discrepancy needs to be reported within 60 days of receipt of the statement. If you need assistance contact your financial institution. Charges may apply.
January
10 Jan Open checking account and deposit paycheck of $453.91
16 Jan Write Check 101 for $145.27 to American Family Insurance for Car 17 Jan ATM withdrawal of $40.00 Cash
18 Jan Debit Card $42.00 BP for Gas
19 Jan Debit Card- $17.46 at Hilltop restaurant for Dinner 23 Jan Write Check 102 for $79.14 to Wisconsin Public Services 23 Jan Write check 103 for $65.87 to Charter Communications 25 Jan Debit Card- $22.25 at Target for new shoes
26 Jan Direct Deposit paycheck of $487.36
29 Jan Write Check 104 for $80.67 to Element Mobile
31 Jan Reconcile your account statement for the month of January (total should be $448.61 before any service fees you may inquire due to the account type.) February
1 Feb Debit Card Purchase of $7.54 at Polito’s Pizza 1 Feb Debit Card Purchase of $45.00 at Kwik Trip for Gas
2 Feb Write Check 105 to BEST Apartments, LLC for $250.00 for Rent 5 Feb Debit Card Purchase of $69.12 at Copps Food Center
6 Feb ATM withdrawal $40.00
9 Feb Direct Deposit paycheck of $476.93
10 Feb Online Billpay- $35.00 to Kohl’s Credit Card
10 Feb Online Billpay- $102.50 to Central City for Auto Loan 10 Feb Transfer to Savings $50.00
11 Feb Debit Card Purchase of $6.37 at El Mezcal
12 Feb Debit Card Purchase of $38.00 at Shell Gas Station 13 Feb Debit Card Purchase of $57.92 at Hollister
15 Feb ATM withdrawal $60.00
22 Feb Debit Card Purchase of $47.01 at BP Gas Station 23 Feb Direct Deposit of Paycheck $438.08
25 Feb Debit Card Purchase of $26.83 at Chili’s Restaurant 28 Feb Write Check 108 for $80.67 to Element Mobile
28 Feb Reconcile your account statement for the month of February (total should be $308.89 before any service fees you may inquire due to the account type.) March
1 March Write Check 109 for $250.00 to BEST Apartments, LLC 3 March ATM withdrawal for $40.00
8 March Direct Deposit Paycheck $461.28
8 March Debit Card Purchase of $49.00 at Kwik Trip for Gas 9 March Telephone transfer $50.00 to Savings account 10 March Online Billpay- $102.50 to Central City for Auto Loan 11 March ATM withdrawal for $60
15 March Debit Card Purchase of $54.38 at Festival Foods 16 March Deposit $120.00 Birthday money
20 March Debit Card Purchase of $45.00 Fleet Farm for Gas 22 March Direct Deposit Paycheck $486.03
24 March Write Check 110 for $70.81 to Wisconsin Public Services 24 March Write Check 111 for $65.87 to Charter Communications 26 March Write Check 112 for $80.67 to Element Mobile
28 March Debit Card Purchase of $147.45 at Best Buy for new speakers 28 March Debit Card Purchase of $57.87 at Mickey’s Restaurant
Name:
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Name:
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Member ID: 1234567 1/31/2011 1 of 1
Account Balances at a Glance:
Checking 529.28
Savings 0.00
Used Car Loan 6,497.77
Post Date Amount Balance Description
1-10 453.91 453.91 Deposit- Open Account
1-17 -40.00 413.91 ATM Withdrawal located at 3101 Hoover Rd.
1-18 -42.00 371.91 Point of Sale Withdrawal- BP
1-19 -17.46 354.45 Point of Sale Withdrawal- Hilltop
1-21 -145.27 209.18 Check 101
1-25 -22.25 186.93 Point of Sale Withdrawal- Target
1-26 487.36 674.29 Direct Deposit- payroll
1-27 -65.87 608.42 Check 103
1-28 -79.14 529.28 Check 102
1-31 529.28 Ending Balance
Member ID: 1234567 2/28/2011 1 of 1
Account Balances at a Glance:
Checking 389.56
Savings 50.00
Used Car Loan 6,395.27
Post Date Amount Balance Description
2-1 -7.54 521.74 Point of Sale Withdrawal- Polito's Pizzaria
2-1 -45.00 476.74 Point of Sale Withdrawal- Kwik Trip
2-2 -80.67 396.07 Check 104
2-5 -69.12 326.95 Point of Sale Withdrawal- Copps Food Center
2-6 -250.00 76.95 Check 105
2-6 -40.00 36.95 ATM Withdrawal located at SPASH
2-9 476.93 513.88 Direct Deposit-Payroll
2-10 -35.00 478.88 Online Billpay- Kohls Credit Card
2-10 -102.50 376.38 Online Billpay- Central City Credit Union Auto Loan
2-10 -50.00 326.38 Online Transfer to saving account
2-11 -6.37 320.01 Point of Sale Withdrawal-ElMezcal
2-12 -38.00 282.01 Point of Sale Withdrawal- Shell Gas Station
2-13 -57.92 224.09 Point of Sale Withdrawal- Hollister
2-15 -60.00 164.09 ATM Withdrawal located at SPASH
2-22 -47.01 117.08 Point of Sale Withdrawal- BP
2-23 438.08 555.16 Direct Deposit-Payroll
2-25 -26.83 528.33 Point of Sale Withdrawal- Chili's Restaurant
2-26 -72.90 455.43 Check 106
2-26 -65.87 389.56 Check 107
2-28 389.56 Ending Balance
Member ID: 1234567 3/31/2011 1 of 1
Account Balances at a Glance:
Checking 383.32
Savings 100.00
Used Car Loan 6,292.27
Post Date Amount Balance Description
3-2 -80.67 308.89 Check 108
3-3 -40.00 268.89 ATM-Withdrawal located at Spash
3-5 -250.00 18.89 Check 109
3-8 461.28 480.17 Direct Deposit Payroll
3-8 -49.00 431.17 Point of Sale Withdrawal- Kwik Trip
3-9 -50.00 381.17 Transfer- Telephone to Savings Account
3-10 -102.50 278.67 Online Billpay- Central City for Auto Loan
3-11 -60.00 218.67 ATM-Withdrawal located at Spash
3-15 -54.38 164.29 Point of Sale Withdrawal- Festival Foods
3-16 120.00 284.29 Cash Deposit
3-20 -45.00 239.29 Point of Sale Withdrawal- Fleet Farm
3-22 486.03 725.32 Direct Deposit Payroll
3-27 -70.81 654.51 Check 110
3-28 -65.87 588.64 Check 111
3-28 -147.45 441.19 Point of Sale Withdrawal- Best Buy
3-28 -57.87 383.32 Point of Sale Withdrawal- Mickey's Restaurant
3-31 383.32 Ending Balance