Opening a Checking Account

Transcription

1 Opening a Checking Account Follow these instructions when opening an account: 1. Most account applications are completed on a computer to process the application quickly. The customer may complete a brief hand-written application to be entered into the computer by new accounts personnel. Picture identification is required along with an address, phone number, social security number, and name. 2. If the customer is approved, he/she completes a signature card. This card contains account information for the new account. The new customer signs this card. It is used to verify the signature for each transaction. To complete a transaction, the account holder endorses each item. Each endorsed item is compared to the signature card to prevent checking account fraud. 3. This signature means the customer agrees to all terms and conditions of the account. 4. If offered, customers may choose to get an ATM or debit card for the account. A request form may have to be completed. 5. An initial deposit must be made at the time the account is opened. Signature Card Acct. # Account Holder Name: Smith, Sally S. Social Security Number: Mailing Address: Telephone Number: (406) Number of Signatures Required: 1 Sally S. Smith Signatures of Authorized Individual(s) Family Economics & Financial Education Revised October 2004 Financial Institutions Unit Checking Account Simulation Page 1

2 Endorsing a Check Blank Endorsement Endorse Here DO NOT WRITE, STAMP OR SIGN BELOW THIS LINE RESERVED FOR FINANCIAL INSTITUTION USE Restrictive Endorsement Endorse Here For Deposit Only Acct. # DO NOT WRITE, STAMP OR SIGN BELOW THIS LINE RESERVED FOR FINANCIAL INSTITUTION USE Special Endorsement Endorse Here Pay to the Order of Mike Smith DO NOT WRITE, STAMP OR SIGN BELOW THIS LINE RESERVED FOR FINANCIAL INSTITUTION USE Family Economics & Financial Education Revised October 2004 Financial Institutions Unit Checking Account Simulation Page 2

3 Making a Deposit Deposit Ticket CASH CHECKS LIST SINGLY 50 Cents /2/03 DEPOSITS MAY NOT BE AVAILABLE FOR IMMEDIATE WITHDRAWAL SIGN HERE FOR CASH RECEIVED Piggly Wiggly TOTAL FROM OTHER SIDE SUBTOTAL * Less Cash Received NET DEPOSIT $ : " 1. The date the deposit is being made. 2. Signature Line Sign this line to receive cash back. 3. Cash The total amount of cash being deposited. 4. Checks List each check being deposited individually. If more checks are being deposited than number of spaces on the front, use the back of the deposit slip. Identify each check on the deposit slip by abbreviating the name of the check writer. 5. Total from Other Side The total amount from all checks listed on the back. 6. Subtotal The total amount of cash and checks. 7. Less Cash Received The amount of cash back being received. 8. Net Deposit The amount being deposited into the account. To calculate the amount, subtract the cash received from the subtotal. Family Economics & Financial Education Revised October 2004 Financial Institutions Unit Checking Account Simulation Page 3

4 Deposit Slips Front Deposit Ticket CASH Cents CHECKS LIST SINGLY DEPOSITS MAY NOT BE AVAILABLE FOR IMMEDIATE WITHDRAWAL SIGN HERE FOR CASH RECEIVED : " TOTAL FROM OTHER SIDE SUBTOTAL * Less Cash Received NET DEPOSIT $ Back CHECKS LIST SINGLY TOTAL ENTER ON FRONT $ Cents Family Economics & Financial Education Revised October 2004 Financial Institutions Unit Checking Account Simulation Page 4

5 Checks Side A Piggly Wiggly Main Street September 16, Pay to the Order Of: Memo September Paycheck Piggly Wiggly : : 1244 Piggly Wiggly Pay Period 9/1/2003-9/15/2003 Employee Smith, Sally Employee Address Hours Worked Hourly Rate $6.00 One Hundred Fifty-Four and 01/100 SSN Check # 1244 Check Amount $ Pay Type- Deductions Current Year-to-date Gross Pay $ Federal Withholding $7.50 $ State Withholding $4.72 $80.24 Social Security $11.16 $ Medicare $2.61 $44.37 Totals $25.99 $ $ Piggly Wiggly Main Street October 1, Pay to the Order Of: $ One Hundred Fifty-Four and 01/100 Memo October Paycheck Piggly Wiggly : : 1264 Piggly Wiggly Pay Period 9/16/2003-9/30/2003 Employee Smith, Sally Employee Address Hours Worked Hourly Rate $6.00 SSN Check # 1264 Check Amount $ Pay Type- Deductions Current Year-to-date Gross Pay $ Federal Withholding $7.50 $ State Withholding $4.72 $84.96 Social Security $11.16 $ Medicare $2.61 $46.98 Totals $25.99 $ Family Economics & Financial Education Revised October 2004 Financial Institutions Unit Checking Account Simulation Page 5

6 Checks Side B Endorse Here DO NOT WRITE, STAMP OR SIGN BELOW THIS LINE RESERVED FOR FINANCIAL INSTITUTION USE Endorse Here DO NOT WRITE, STAMP OR SIGN BELOW THIS LINE RESERVED FOR FINANCIAL INSTITUTION USE Family Economics & Financial Education Revised October 2004 Financial Institutions Unit Checking Account Simulation Page 6

7 Check Side A Seth & Amy Greene 305 N Elm St. October 1, Pay to the Order Of: $ Seventy Five and 70/100 Memo Garage Painting Job : : 1254 Seth Greene Family Economics & Financial Education Revised October 2004 Financial Institutions Unit Checking Account Simulation Page 7

8 Check Side B Endorse Here DO NOT WRITE, STAMP OR SIGN BELOW THIS LINE RESERVED FOR FINANCIAL INSTITUTION USE Family Economics & Financial Education Revised October 2004 Financial Institutions Unit Checking Account Simulation Page 8

9 Writing a Check September 2, Pay to the Gas N Go 4 5 Order Of 6 7 Memo Gas 8 9 Fifteen and 78/ : : 301 $ Personal Information The check holder s name and address; may include a phone number, but not required. DO NOT list a social security number on a printed check for safety reasons. 2. Check Number Numbers used to identify checks. The check numbers are printed chronologically and should be used in this order. 3. The date the check is being written. 4. Pay to the Order of The name of the person or business to whom the check is being written. 5. Amount of the Check in Numerals The amount of the check written numerically; write the cents smaller and underline them. Write the number directly next to the dollar sign to prevent someone else from adding numbers to change the amount of the check. 6. Amount of the Check in Words The amount of the check written in words. Start at the far left of the line. Write down the dollar amount in words first, then write and after the words, and finish by writing the amount of cents over the number 100. Draw a line from the end of the writing to the end of the line. 7. Memo Space to identify the reason for writing the check. It is a good place to write information requested by a company when paying a bill, generally the account number. 8. Signature The account holder s signature agreeing to the transaction. 9. Identification Numbers The first set of numbers is the routing numbers to identify the account s financial institution, the second set is the account number, and the third set is the check number. Family Economics & Financial Education Revised October 2004 Financial Institutions Unit Checking Account Simulation Page 9

10 Practice Checks 1254 Pay to the Order Of: $ Memo : : 1254 Check # 1254 written to Aspen Properties for rent in the amount of $ on October 5, Pay to the Order Of: Memo $ : : 1264 Check # 1264 written to the Hungry Man for food in the amount of $27.32 on October 6, Family Economics & Financial Education Revised October 2004 Financial Institutions Unit Checking Account Simulation Page 10

11 Check Register RECORD ALL CHARGES OR CREDITS THAT AFFECT YOUR ACCOUNT DATE NUMBER DESCRIPTION OF TRANSAC- TION PAYMENT/DEBIT (-) DEPOSIT/CREDIT (+) FEE (IF ANY) BALANCE T $ / Gas N Go $15.78 $ $ Gas The date the check was written or the day the transaction was made. 2. Number The number of the written check. If a debit card or ATM was used, write DC or ATM. 3. Description of Transaction The person/business the check was written to or where the ATM/debit card was used. The gray line can be used to write the memo for budgeting purposes. 4. Payment/Debit(-) The amount of the transaction; deducted from the balance. 5. Deposit/Credit(+) The amount of the transaction; added to the balance. 6. T A box used to track whether the check has cleared on the monthly bank statement when reconciling at the end of each month. 7. Fee (if any) Any extra fees charged to the account; listed on the bank statement. 8. Balance The balance, which is a running total, calculated by adding or subtracting each transaction; keep this updated. ***REMEMBER*** Every time a check is written or a transaction is made, enter it into the check register! Family Economics & Financial Education Revised October 2004 Financial Institutions Unit Checking Account Simulation Page 11

12 September Statement GUARDIAN ANGEL BANKING 423 SOUTH 15TH YOURTOWN, MT STATEMENT FOR: SALLY SMITH 500 GREAT STREET YOURTOWN, MT THIS STATEMENT COVERS: 9/1/03 THROUGH 9/30/03 CHECKING ACCOUNT # Previous Statement Balance on 8/31 $ Total Deposits $ Total Withdrawals $ New Balance $ DEPOSITS AND OTHER CREDITS Posted Transaction Amount 9/2 Deposit at South 15th Branch $ /17 Deposit at South 15th Branch $ Total Deposits $ WITHDRAWALS Posted Check # Amount 9/2 301 $ /3 302 $ /9 303 $ /9 Debit Card The Electronic Store $ / $ / $ / $ /16 ATM #125 Cash Withdrawal $ / $ /23 Debit Card Theater Square $ / $ / $ /30 ATM #125 Cash Withdrawal $60.00 Total Withdrawals $ Family Economics & Financial Education Revised October 2004 Financial Institutions Unit Checking Account Simulation Page 12

13 Reconciling a Checking Account Instructions on Reconciling Checking Accounts: 1. Find the current checking account balance on the statement. 2. Add any outstanding deposits. 3. Subtract any outstanding withdrawals. 4. Compare this result with the current balance in the check register. They should be the same. 5. If not, double-check the math and make sure all service fees and charges have been added to the check register. *Note: Below is ONLY an example to practice reconciling a checkbook. It does NOT pertain to example bank statements. Deposits Outstanding Amount 8/ Use the information below and to the left to practice reconciling: Bank Statement Balance $ Checkbook Register Balance??? ENTER Bank Statement Balance $ Total Withdrawals Outstanding Number Amount ADD (+) Outstanding Deposits $ SUBTOTAL (=) $ SUBTRACT (-) Outstanding Withdrawals $ CALCULATE (=) Total should be the same as the checkbook register $ Total Family Economics & Financial Education Revised October 2004 Financial Institutions Unit Checking Account Simulation Page 13