Page 8 - financial-literacy-pamphlets-sample
P. 8
Key Terms You Need to Know: Exercise - Checking Account Checklist
Check: written paper showing the amount of Using an ATM Machine Most banks and credit unions have several options for checking accounts. Choosing the right type depends
money to be paid and the name of the person or Insert your card, and enter on what’s important to you and how you plan to use the checking account. Answer these questions to
company who should receive the money. your PIN number. Follow the determine your priorities. Then, take the list with you when you go shopping for a checking account.
Debit card: a card that allows the user to withdraw instructions on the screen:
money from a bank account to obtain cash or make Most ATMs allow you to: Institution #1 #2
a purchase like a credit card.
Get a balance inquiry How I’ll make payments:
Automated Teller Machine (ATM): a machine that Get cash (no bills smaller than a $20) How will you pay most of your bills and make purchases?
allows you to use your debit card to perform basic Will you write a lot of paper checks or hardly any? How
banking functions without the help of a teller. Deposit cash and checks many per month?
Transfer funds between accounts Will you pay bills online?
Online banking: access your account information,
view transaction history, and perform banking View previous transactions Will you make most purchase with a debit card?
Will you do most banking in person, at an ATM, by phone,
transactions via the Internet. (may charge a fee)
or online?
Direct deposit: your paycheck is automatically Overdraft Protection Services Convenience:
deposited into your account. You don’t receive a Do you want to have an ATM nearby where you live?
physical check, just a statement. Ask your bank if they offer overdraft Is there a branch close to your home or work?
protection. If you write a check and there
Minimum account balance: the amount of money aren’t enough funds in your account to pay Do they offer other services you need?
you must keep in the account to avoid service it, the bank will pay it. You will be charged What fees are associated with the account?
charges, qualify for special services, or earn an overdraft fee, and need to replace the Is there a monthly fee? Is there a way to have this waived?
interest on the checking account. funds as soon as possible. Is there a limit to the number of free checks I can write per
month? – Can I live with that?
Do I get balance requirements or fees waived if I do direct
Writing a Check deposit with my paycheck?
Is there a fee for teller services?
A. Your Name/Address Information which should appear on a check:
B. Name of person receiving ATM-Checking:
payment Is there a monthly fee for ATM use?
C. Name of your bank Is there a fee for debit transactions vs. credit?
D. A note to record the Do they offer reimbursement for non-bank ATM’s?
purpose of check
E. Routing number of the Interest checking account:
bank Is an interest checking account right for me?
F. Checking Account # What are the minimum balances or monthly fee?
G. Check number What is the amount of interest?
H. Date check is written
I. Dollar amount What to Take With You When You Open a Checking Account:
written as a number
J. Dollar amount 1. Picture identification.
written out in words Always write checks in ink to protect yourself from people who might 2. Taxpayer identification number (usually a Social Security number).
K. Your signature. change the details. 3. Money to put in the account.
