BANKING

For your Green backs

U. S. Federal Mint

U.S. Federal Mint operating bureau of the Department of the Treasury makes new coins.

U.S. Bureau of Engraving and Printing prints new currency. New coins and currency are sent to

the Federal Reserve Banks which distributes as needed.

Federal Reserve

The FED uses monetary policy to regulate the nation’s money supply.

Provides banking services to depository institutions.

Supervises and regulates most large banks. Formulates and implements money

policy.

Cash cards

Consumers purchase cash cards for a specific amount of money. Money is loaded and stored on the card’s memory.

Money can be spent. Some merchants allow customers to reloaded money on the cash cards.

Depositing large amounts of money

If a person makes a deposit of $10,000 or more into a bank account, the bank must notify the U.S. Treasury Department.

What is a Series EE savings bond?

Series EE savings bonds are issued by the U.S. Treasury.

They can be purchased for one-half of the face value.

Earn interest monthly Buy a $50 Series EE bond for $25 Within 17 years is guaranteed to

reach face value of $50.00!

How can you earn interest on your money?

Certificates of deposit “CD” – less liquid Earns higher interest rate than Money

Market or Savings accounts. Larger amounts of money deposited

for a period of time for a fixed interest rate. Cannot be withdrawn without penalty!31 days to 8 yearsCan be rolled over into another CDMust pay taxes on interest earned

How can you earn interest on your money?

Money market account – less liquid Earns higher interest rate than

Savings accounts Large amount of money deposited

for a fixed period of time for a fixed interest rate.

Must pay taxes on interest earned.

How can you earn interest on your money?

Savings account – most liquid Earns lower interest than

Certificates of deposit and Money market with no fixed period of time.

Must pay taxes on interest earned.

Safe-Deposit Box

Safe-Deposit box is a metal box in a bank’s vault Requires 2 keys

1 required by bank1 required by customer/owner

Only owner can access box Pay a fee to rent Store important papers – Mortgage Loan Papers

Automated Teller Machine

No fees if you use your own bank

Personal Identification Number “PIN” Keep it safe!

Checking Accounts

Types of Checking Accounts

Regular Checking Designed for

people who write a few checks each month and do not keep a minimum amount of money in the account

Interest-Bearing Account that

earns interest on the balance

Requires a minimum amount in the account at all times

Tools forChecking Accounts Check / Debit

Card Can be used

anywhere Visa & Mastercard are accepted

Instantly drafts payment from your account

Always sign or write “Check ID” on the back!

Check Book Official check forms

from the bank

Check Register Used to record all

checking transactions (debits, checks, deposits, transfers,, etc.)

Bank Statement Official bank

document listing all checking transactions

Emailed or mailed every month

Types of Checks

Personal

Travelers

Cashier

Certified

Click here to learn

about the difference between

each type of check.

Certified Check

Certified Check is a check for which the bank guarantees payment. It is stamped by the bank Funds to cover are immediately withdrawn from depositor’s account.

Elements of a Check

Drawer: the owner of the account & the person who signs the check

Payee: the person to whom the check is written

Drawee: the bank or financial institution that pays the check

Cashing Checks

Endorsing a check is signing off that you are the payee listed.

Sign the line on the back of the check when you cash or deposit it.

You can also sign over a check to another payee.

ENDORSE CHECK HERE

X_________________________________________________________________________________________________________________________________________________________DO NOT SIGN / WRITE / STAMP BELOW THIS LINE

-------------------------------------------------------------------

Parts of a Check

Today’s DateName of

PayeeAmount

Amount Spelled Out In Words

Purpose Signature

Name & Address of Bank

Writing Personal Checks

1. Use checks in order by number

2. Always use the current date3. Write the payee’s name

clearly on the line labeled Pay to the Order Of

4. Write the amount to be paid in numeric figures after the printed dollar sign $

Writing Personal Checks

5. Spell out in words the amount to be paid clearly on the line below the payees name

6. Indicate the purpose of the check on the line labeled For

7. Sign your check

Tips for Writing Checks

Write checks in inkOnly write checks if you have enough $$$ in your account to cover it

Use the current date

Tips for Writing Checks

Always fill in the amountVoid checks on which you make an error

Record every payment in your check register, including EFT

Caution!

If you are not careful with your checking account, you might incur service charges from the bank!

Overdraft – using more debits or writing more checks than the money available in your account

Stop Payment- an order for a bank not to cash a particular check or set of checks

Reconciliation

Process of comparing your check register to your monthly bank statement

Verify that starting and ending balances match

THEMINT.ORGFollow the directions to practice writing checks and learn how to track your checking account!

http://www.themint.org/teens/writing-a-check.html

http://www.themint.org/teens/balance-your-checking-account.html

HOW TO COMPLETE A DEPOSIT SLIPWatch the video on how to complete a deposit slip and then practice!