CFL Unit 2 Banking & Checking

What are some Safety tips for an ATM/debit card

-PIN number should be random and not easily guessed -Sign your name on back of card and write see ID -Report it lost or stolen right away in those situations

Checking account

A bank account from which payments can be ordered by a depositor

What is a routing number

A nine-digit code used by financial institutions to identify other financial institutions.

Credit Card

A plastic card used to make purchases now and pay for them later.

Check

A written order for a bank to pay money

Check register

All transactions including deposits, checks, debit card purchases, additional fees, and ATM use should be recorded here immediately after completion

ATM

Automated Teller Machine used to withdraw cash from account

How are funds accessed from a checking account?

Check, ATM, debit card

Reconcile

Comparing the bank statement with the check register

How do you write a check properly

Date the check, who is the check for?, write the payment amount in numbers, write the payment amount in words, write a memo, sign the check

PIN

Debit cards require using this to access the account to perform transactions

What is a check number

Helps identify checks when balancing a checkbook and knowing what payment is what.

Where is the check number located

In the upper right-hand corner is a three or four-digit number

Where is the routing number located

Located on the bottom left of a check.

What is a checking account used for

To keep money in a safe place until you are ready to spend it

Debit Card

a card issued by a bank allowing the holder to transfer money electronically to another bank account when making a purchase.

What does bouncing a check mean

a check that cannot be processed because the account holder has nonsufficient funds

Outstanding check

a check that is not on your bank statement but on your checkbook register regarding money that is going out of your account via check.

What is endorsing

placing the practice name and account number on the back of the check

Outstanding deposit

something that is not on your bank statement but on your checkbook register regarding money that is going into your account