BANKING SERVICES. Types of Financial Institutions Commercial Banks Savings and Loan Associations...
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Transcript of BANKING SERVICES. Types of Financial Institutions Commercial Banks Savings and Loan Associations...
BANKING SERVICES
Types of Financial Institutions
Commercial Banks
Savings and Loan Associations
Credit Unions
Brokerage Firms
Bank ServicesChecking AccountsInterest on checkingAutomatic deposit and paymentStorage of valuables (safe deposit box)Transfer of moneyOverdraft checkingTraveler’s checksFDIC (Federal Deposit Insurance Corporation)Credit CardsDebit cards/ATMS
Choosing a Checking Account
Monthly feesPer-check chargesBalance requirementsInterest rateHow rates are calculatedHow soon you can draw against a depositBounced check charges
On your checkOn a check you deposit
ATM chargesCheck card chargeStop payment feesCharges for printed checksLocations/number of branchesBank hours
Opening a Checking Account
Signature authorization card
The contract and what it means
Initial deposit
Types of Checking Accounts
Individual Account – has only one holderOnly that person can make withdrawals from the account
Joint Account – two or more individualsEach person that signs the signature card can make withdrawals from the account
Making a Deposit
Writing a deposit slipDeposit slip – a form to be completed when you deposit money in your accountEndorsing a check
Blank endorsement (just your signature)
Depositing a checkDirect depositManual deposit
Deposit slip
Steps in preparing
How to Endorse a Check
3 Types of EndorsementsBlank Endorsements – used only with endorser’s signatureSpecial Endorsements – Endorse in full
Pay to the order ofWilliam FurmanBen Furman
Restrictive EndorsementFor Deposit Only toThe account of Rugcare56-48365-12Ben Furman
ChecksCheckbook-contains checks that are used for making payments in cashKeep accurate records of your transactionsInsufficient funds – fee charged to cover your withdrawal if you overdraft your account.Check stub/check register – used to record the balance of the account, the amount of each check written, to whom the check is written, deposits made to the account, the date, and any charges made by the bank.Service charge – is a fee charged by the bank for having a checking account.Canceled checks – Your checks that the bank has processed and deducted from your account.
Check Register
Fill out the check register either before or immediately after writing a check or using your debit card
Balance – the amount of money on deposit in the account at that time
Every time you write a check or use your debit card deduct this amount from the previous balance in order to calculate the new balance
Check Register
3 Types of Check Registers
Regular Check Register
Side Check Stub
Top Check Stub
How to Write a CheckUse a pen, write in the date (Include the month, day, and the year)After Pay to the Order of, write the name of the payee (the person or business being paid)Write the amount of the check in numbers – Cents should be written as a fraction of 100Use the line marked For, to make a note about the purpose of the transactionSign your name as written on your signature card
Check
Completed Check
Benefits of Using a Debit Card
ConvenienceEliminates the need to carry cashDoesn’t deplete the available cash in your walletCan be used out of town or at locations where checks are not acceptedReduces the possibility of loss or theft of cash
Using a Debit Card
Remember your personal identification number (PIN) and keep it confidential
Enter information about your transaction in your check register
Keep a running balance in your check register of your debit card transactions
Reconciling Your Bank Statement
Look over your bank statement
Reconcile your accountCheck the bank statement
Verify checks and debit card transactions in the check register
Verify deposits
Correct any entry or deposit errors in the check register
Correct any omission errors in the check register
Find outstanding transactions
BANK STATEMENT
Bank Reconciliation Form
“Outstanding
Checks”“Outstanding
Checks”
“Outstanding
Deposits”