Introduction
By the end of this lesson, learners should be able to:
- Explain how to open a checking account
- Demonstrate how to write a check
- Demonstrate how to fill out checking account deposit and withdrawal slips
- Demonstrate how to use an ATM (Automated Teller Machine)
Opening a Checking Account
To open a checking account:
- Visit the financial institution of your choice and speak to a customer service agent about opening a checking account.
- Bring with you:
- two forms of Identification (including one with a picture
- Social Security number
- money for your first deposit (cash or check
- Be prepared to fill out information on a signature card that will remain on file at the bank. The bank uses the card to verify the signature on checks that bear your name. Signature cards typically include:
- Your name
- Current address and length of time at the address
- Previous address and length of time at that address
- Type of account (single, joint)
- Your signature
- Once your account is approved, make your first deposit.
Getting Your Checks
When you open a checking account, the bank will provide temporary checks until you order permanent ones. You can order checks from the bank or order from a company. Plain checks are usually cheaper than those with fancy designs.
You may have various styles of checks from which to choose. For example, some checkbooks come with a duplicate feature. This allows you to keep a carbon copy of the checks you write for your records.
The box(es) of checks you order will be sent to you in the mail. Several checkbooks, or groups of checks, are in each box.
Your checking account number (the number your bank assigns to your checking account) and your bank's routing number appear on your checks. Your checking account number is important as you make deposits to and withdrawals from your account. The routing number simply identifies your bank.
You may have various styles of checks from which to choose. For example, some checkbooks come with a duplicate feature. This allows you to keep a carbon copy of the checks you write for your records.
The box(es) of checks you order will be sent to you in the mail. Several checkbooks, or groups of checks, are in each box.
Your checking account number (the number your bank assigns to your checking account) and your bank's routing number appear on your checks. Your checking account number is important as you make deposits to and withdrawals from your account. The routing number simply identifies your bank.
Writing a Check
Checks are convenient when you don't want to carry around a lot of cash or when you need to pay bills through the mail. Take a few minutes to review the parts of a check:
To write a check:
To write a check:
- Enter the date at the top of the check
- Write the name of the company or person you are paying money to in the Pay to the order of line.
- At the end of the Pay to the order of line, write the number amount of the check. For example, $25 or $48.28.
- Next, on the dollars line write the check amount in words. This confirms the number amount. For example, forty eight dollars and 28/100. (Note that you can write the cents as a fraction).
- If there is any blank space after you write in the amount, draw a line out to the end (stopping before the word 'dollars') so no one can add to the amount. For example, forty eight dollars and 28/100-----------------------dollars.
- Write your signature on the line at the lower right corner of your check.
- In the Memo or For section in the bottom left corner, write what the check is for. For example, "jeans for John" or "rent."
Interactive Practice
Using your mouse, drag and drop the parts of the check to the proper places. You may also print out a blank check and practice filling it out. Printable check (opens in a new browser window)
Deposit Slip
Deposit Slip A deposit slip is a written order to your bank instructing it to put funds into your account. You can use a deposit slip to put money - cash, checks or money orders - into your account.
Be sure to endorse or sign any check that had been made payable to you before you deposit it. On the back of the check, there is a place for your endorsement (signature).
Deposit slips vary from bank to bank. Here's an example:
Be sure to endorse or sign any check that had been made payable to you before you deposit it. On the back of the check, there is a place for your endorsement (signature).
Deposit slips vary from bank to bank. Here's an example:
To fill out a deposit slip:
- List the amount of money that you want to deposit. Most slips have a separate line for cash, checks etc.
- For example, $30 (cash), $450.55 (check.
- Enter the subtotal. In this case, $470.55
- Enter any amount you want back. In this case, 0.
- Next enter the Total. In this case, $470.55.
- Sign the deposit slip.
- Take the slip and the money you want to deposit to a teller at your bank. Or, you can make deposits using an ATM if you have an ATM card. You'll learn about using an ATM later in this lesson.
**If you want to cash a check and not deposit it, remember that you need to sign the back of the check.
Deposit Practice
Visit Deposit in our Everyday Life project to practice endorsing a check and filling out a deposit slip.
Withdrawal Slip
A withdrawal slip is a written order to your bank instructing it to withdraw funds from your account. Withdrawal slips vary from bank to bank.
Here's an example:
Here's an example:
To fill out a withdrawal slip:
- List the amount of money that you want to withdraw. For example, $50.
- Sign the withdrawal slip.
- Take the slip a teller at your bank. Or, you may withdraw money using an ATM.
Keeping Track of Your Account
As you write checks or make deposits, keep track of the amount of money remaining in your account. Your bank or financial institution will send you a monthly statement or list of the various withdrawals and deposits made on your account. If you have an ATM card, you can also access this type of information at an ATM. You can also access your account status at any time if you bank online.
To keep a current record of your checking account, use your check register. This tool usually comes with your checkbook.
When your bank statement arrives, compare it with your check register. Balance or reconcile your account by figuring out the amount of money you deposited, the amount you spent and the amount you have left. Basic accounting software such as Microsoft Money or Quicken can also help you balance your checkbook.
Avoid Writing Bad Checks Don't write checks if you don't have enough money in your account because the consequences can be damaging:
To keep a current record of your checking account, use your check register. This tool usually comes with your checkbook.
When your bank statement arrives, compare it with your check register. Balance or reconcile your account by figuring out the amount of money you deposited, the amount you spent and the amount you have left. Basic accounting software such as Microsoft Money or Quicken can also help you balance your checkbook.
Avoid Writing Bad Checks Don't write checks if you don't have enough money in your account because the consequences can be damaging:
- Your bank and the business you wrote the check to may each charge you a fee of about $25.
- You may be placed on a bad check list and businesses may refuse to accept your checks.
- Your bank may close your account and other banks may be alerted.
- You could face criminal charges if authorities can prove criminal intent.
Automated Teller Machine and ATM Card
An ATM card looks like a credit card. Because it is linked to your bank account(s), you can use it to get cash, deposit funds, and check account balances at an ATM (Automated Teller Machine.) ATMs are convenient because they are available 24 hours a day at different locations.
A debit card combines the functions of an ATM card and a check. It can be used like a check. Most banks issue a combinationATM/debit card. Besides an ATM card or debit card, you may also use a credit card, which is linked to your credit card account, at an ATM.
To use an ATM, you need a PIN (Personal Identification Number). A bank or financial institution issues this four-digit number to you to protect against anyone else using your card. You must have a PIN and password to access online banking services. Always safeguard such information.
A debit card combines the functions of an ATM card and a check. It can be used like a check. Most banks issue a combinationATM/debit card. Besides an ATM card or debit card, you may also use a credit card, which is linked to your credit card account, at an ATM.
To use an ATM, you need a PIN (Personal Identification Number). A bank or financial institution issues this four-digit number to you to protect against anyone else using your card. You must have a PIN and password to access online banking services. Always safeguard such information.
Operating an ATM
ATM machines may differ in appearance. However, they operate in the same basic way.
To use an ATM
To use an ATM
- Insert your ATM, debit or credit card into a slot on the machine.
- You may be asked to select English or Spanish.
- Using the machine's number keypad, Enter your PIN (Personal Identification Number.)
- Press E or Enter.
- Select your transaction. For example, Withdrawal, Deposit, Transfer Funds, Account Balance.
- Another list of choices appears based on your transaction. For example, you may need to select which account you want to with or deposit funds to or which account you want to transfer money from and which one you want to transfer money to.
- You will also need to select or enter the amount of money you want to withdraw, deposit etc. (If you are making a deposit, you will have to put the amount into a deposit envelope and insert it into a slot on the machine.)
- Your transaction will be processed. For example, if you made a withdrawal the machine will issue you cash.
- Your card will be returned to you, and a receipt will be printed if you requested one. Don't forget your card!