Personal Finance

Checking account

Allows you to write checks or transfer money electronically to make payment

Check

A written order to a bank to pay the amount stated to the person or business named on it

Depositor

AKA the maker; the one who has the checking account

Payee

Person to whom a check is made payable

Endorsement

A signature on the back of the check; necessary to cash or deposit the check

Blank endorsement

The signature of the payee written exactly as it appears on the front

Restrictive endorsement

Restricts or limits the use of the check by writing “for deposit only to the account of…” and signing your name below it

Deposit slip

A form used each time you want to deposit money into your account

Deposit in transit

A deposit that has not reached or been recorded by the bank before the bank statement is prepared

bank statement

 Provided by the bank, listing online payments, checks, ATM withdrawals, deposits, and charges that are processed by the bank

Debit card

Provides immediate deductions from your checking account when you make a purchase or withdrawal

Bank reconciliation

 The process of matching your checkbook with the bank statement balance

Outstanding checks

A check that has not been deducted from the checking account and does not appear on the bank statement

EFT

Electronic funds transfer; using a computer based system to transfer funds from one account to another without using a check; using a phone, computer, or in person

NSF check

Not sufficient funds; when you spend more than you have in your account and you don’t have overdraft protection, you are charged a fee

Cancelled check

A check that has cleared your account; it has been paid and can be used as proof of payment

Checkbook register

A record of checking account transactions including checks, online payments, and deposits that is kept by the depositor 

Service charge

A fee the bank charges for processing transactions