Banking Objectives Identify types of accounts Evaluate banking transactions for accuracy and completeness Determine uses for online banking Checking Accounts Easy access to your funds Write checks or use debit cards ID: 1029611
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1. Lesson 2:Introduction to Banking
2. Objectives: Identify types of accounts Evaluate banking transactions for accuracy and completeness Determine uses for online banking
3. Checking Accounts Easy access to your funds. Write checks or use debit cards. Different types of accounts with different options or packages. Evaluate the different accounts’ terms and benefits before deciding. Many banks will require a minimum deposit of $50 - $100 to open a checking account.
4. Savings Accounts• A place for you to save money.• You can make deposits and withdrawals.• Banks typically pay interest on money in savings accounts.• Interest is calculated as a percentage of what you have saved.• Minimum deposit required to open account.• May charge fee if balance falls below specified minimum.
5. Money Market Accounts• Similar to a savings account.• Requires a higher balance to avoid monthly fees.• Interest rates vary regularly based on money markets.• Limited check writing privileges.Banks offer customers money market accounts in order to have the funds to insure money market transactions.
6. Certificate of Deposit (CD)• Allows you to invest your money with a set interest rate for a pre-set period of time.• Higher interest rate, as money is inaccessible.• Life of a certificate ranges from a few months to several years.• Early withdrawal carries substantial penalty.
7. Writing a CheckName must be displayed.Address and telephone numbers are optional.You must write the date in this field.Each check has a unique number. They will all be in chronological order.The name of the person or company to whom the check is being written.The amount of the check, written in currency format.The amount of the check, written in words.The name of the bank on which the check is drawn.A description of the nature of the payment. This field is optional.Your signature.The nine-digit routing number.The unique account number.The check number, displayed again in 4 digit format.
8. Cashing a CheckIf a check is written to you, it must be signed, or endorsed, before you are able to cash it.
9. Check Your UnderstandingWhat is missing from these checks?
10. Check Your UnderstandingWhat is missing from these checks?
11. Check Your UnderstandingWhat is missing from these checks?
12. Check Your UnderstandingWhat is missing from these checks?
13. Check RegisterA check register is extremely important for you to be able to balance your account.In order to balance your account, you must record transactions in the register and then check your register against your account statement.Being overdrawn means that you have spent more money than you have available in your account.The bank and anyone to whom you have submitted payment is able to charge you NSF, or non-sufficient funds, fees. These are also known as overdraft fees.++
14. Check Register++
15. 200.00Micah wrote a check (#1034) today for $132.50 to B&T Wireless for his monthly services. 1034XX/XXB&TPhone bill132 50-132.5067.50Check Your Understanding
16. Account StatementsYour account statement allows you to view how you have managed your money for the month. The statement will reflect a summary of all transactions, and a breakdown of every transaction within the period.You can use this statement to balance your account against the information you have in your register. This is the easiest way to detect any errors that may occur.When you set up a bank account,you will receive an account statement every month.
17. Deposit SlipsDepositing money means you are adding money to your bank account. Even though many transactions can be handled electronically, such as depositing a check, you still have to physically deposit cash.
18. Deposit SlipsPre-printed deposit slip:• Usually comes with checks and check register when opening an account.Blank deposit slip:• All information must be added manually.• All account information is pre-printed.• You must enter the date and all cash and checks being deposited.
19. Check Your UnderstandingWanda is depositing a check for $400, but she would like $100 back in cash.Wanda L. Hess789461024573/6/20XX400 00400 00100 00300 00Wanda L Hess
20. Check Your UnderstandingJerry is depositing $150 in cash, a check for $75, and a check for $300.Jerry Detweiler79346187458/7/20XX150 0075 00300 00525 00
21. Withdrawal SlipsWhen visiting a bank, you need to complete a withdrawal slip in order to withdraw funds from your account.
22. Check Your UnderstandingAre these withdrawal slips complete?63185679541,000.00One thousand and ------------------------------------ 00/100John Delgado9/12/20XXJohn Delgado6318567954Five hundred and ------------------------------------ 00/100John Delgado9/12/20XXJohn DelgadoYESNO
23. Online BankingHere are some of the tasks you can complete either online or through mobile banking:• Check account balances• View transactions• Transfer money• Deposit checks• Pay bills• Manage account information• Manage account preferences• Contact the bank
24. Summary: Identified types of accounts Evaluated banking transactions for accuracy and completeness Determined uses for online banking