resource management lesson 3 & 4

what are the different banking services

-debit card

atm

online banking

automatic bill pay

phone transfer

types of checking accounts

minimum balance: required to avoid fees

budget/cost per check: pay small fee for easy check written

NOW accounts: earn interest on deposited finds

Free checking: no monthly fees, no minimum balance

minimum balance checking accounts

your account balance cannot drop below the specified amount

budget/economy cost per check: where every check that is written you have to pay a fee

Negotiable order of withdrawal

bank accounts and services earn intest on money you have deposited

the bank or credit union has the right to require at least 7 days written notice of a withdrawal

larger minimum balance

Free checking

offer free checking as a way to get attention and Dave you money

require a small deposit in order to open the account

offer free checks for life with free checking

variation in checking account

checking acc. / open line of credit

actually a loan

write checks up to loan limit

must pay back everything with interest

money market account

interest bearing account

rate little less than CD

write 3 checks

minimum of 250.00

money market mutual fund

same as money market but written on mutal fund

not insured

types of checks

money order

cashier’s check

certified check

travel ors check

certified check

personal check on your account

bank certifies that the check will be apid

funds are immediately subtracted from the account to cover the check

used to make payment to someone who doesn’t want a personal check

can be used when putting down payment on car or home

money order

purchased and written to payee

can be purchased at gas stations, post office, financial instituion

used when don’t have a checking account and need to make payment by mail or personal check is not accepted

travelors checks

used when don’t want to carry a lot of cash

purchase through financial institutions

get checks and a booklet of # check stubs

if they are lost or stolen- report # and they can be replaced

bank endorsement

signature only

goes of check

used when chasing or depositing your check

restrictive endorsements

safer method if mailing or having another making a deposit for you

write the deposit and you name

can add account #

can not be taken in form of cash

special (full) endorsements

allows you to sign over to someone else

write “pay to the order of” with other persons name and your signature

1

bank name

2

bank #

3

account #

4

written number amount

5

payee (who to)

6

account name/ address

7

date

8

check #

9

bank transit routing symbol

10

dollar amount

11

signature

12

check #