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