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Checking Account Vocab
checking accounts Vocab
Terms in this set (48)
deposit account held at a bank or other financial institution, for the purpose of securely and quickly, providing frequent access to funds on demand, through a varity of different channels, because money is availiable on demend these accounts are also reffered to as demand accounts or demand deposit account.
four benefits to having a checking account
3.Proof of payment
4. record of finances for managing money
document used to verify your signature
* all signers must be on account
two or more people have an account together
Types of checking accounts
Regular Checking account
Interest Earning account
Special Checking accounts
What should you look for when shopping for a checking account?
*Monthly service charge
Take money out of account
put money in account
* sign in ink exact how check is made out.
written evidence you received payment or that you transferred your right of receiving payment to someone else
Person signing check
consists of only endorser's name
Full Endorsement (aka Special Endorsement)
Endorser transfers check to someone else
"Pay to the order of..."
Limits what can be done with it
*" for deposit only"
Two Signatures Required
check made out to two or more poeple
* Jane Doe and John Doe
the word "and" indicates that both payees MUST sign
account owner that wrote check
bank ID code for electronic sorting and routing
Normally 1st number at bottom of check
number to identify the account you own at your bank Normally in the middle of the bottom of the check with the check number at the end.
Seperate book to record transactions that affect your checking account
Checks that have been paid
checks which have NOT been deducted from the bank statement balance
Write Void in big letters across the front of the check
*write viod for the check number in your register
*shred the check and write a new one
copy of the check may also be automatically written created when you wrote the check
* carbon copy
a merchant accepts a debit card to pay for purchases
a bank form you fill out that documents how much money you are adding to your account
Person/company to whom check is written
Name of Bank or other finacial institution that pays a check
Why is it important to maintain the balance on your check book?
to record every deposits, checks, fee,purchases,etc, that affects the balance of your account so you know how much money you have.
a depositer draws a check for more then the amount in the bank
Check card/debit card
is used for atm transactions
paying of checks among different banks and different cities
*Items might not post the same day
continuous,ongoing calculation of the balance
a monthly statement that the bank sends a report on the status of your account
Bank Reconciliation (process)
document created to show how two balances were brought into agreement Your bank account with your check book register
What can cause your check register to be different from your bank statement
Checks may not have cleared, forgettting transactions,service charge,mailed deposit,interest earned
a personal check for which a bank has guaranteed payment
a check that a bank draws on its own funds
special forms designed for making payment when away from home
a form of payment that orders the issuing agency to pay the amount printed on the form to another party
Bank money order
is sold by a bank stating that money is to be paid to a specific person or businesses
Postal Money Order
purchsed from the U.S Post office can be sent safely through the mail
Stop payment order
a written notice that tells the bank not to pay a certain check **Note bank normally charge a fee for this.
Eight items on the bank statement
1. Balance at the beginning of the month
2.the deposits made during the month
3.the checks paid by the bank during the month
4.any automated teller transactions made during the month
5.Any electronic fund transfer or specia payment the bank has made
6.service charges for the month including charges for some special services or stopping payment on a check
7.any interest earned on account
8. The balance at the end of the month
Electronic Funds Transfer
refers to the use of computers and other technology for banking transfer of money
fund s are deposited electronically and available automatically for your use ** You don't receive the check.
Automated Teller Machine (ATM)
commonly called a cash machine, it allows many banking services
Automatic Bill payment
requires a bank customer to authorize preset amounts of monthly expenses
a check that that is dated later than the date on which it is written
THIS SET IS OFTEN IN FOLDERS WITH...
Business Law || Credit Card Vocabulary
Savings, Investing, & Debt/Credit Card
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