Problem Solving Bellringer• Objective: Understand Personal

Banking

• Problem: Solve for the variable x

3x + 2 = 11

Introduction to Personal Banking

3.1 Checking Accounts

Types of Checking Accounts

1. Basic checking – Make deposits or write checks. Usually no interest is paid

2. Interest-bearing – Same as basic but with interest. Minimum balance required.

3. Free/NOW/Lifeline – Free checking accounts with no fees or minimum balance requirements

4. Joint – All owners have access to money

More about single accounts

Single accounts allow only one person to access the money. Only the account owner may deposit money, write checks, and perform account maintenance

Joint accounts

Joint accounts allow multiple people to own the account. Each person has full access to all money in the account.

When would it be beneficial to use a joint account?

Moving money into and out of a checking account

Out: Write a check, make a purchase with a debit card, auto bill pay, withdraw money

In: Electronics Fund Transfer (EFT), deposit a check (single or deposit slip w/ cash)

For check deposits a hold is usually placed on the money.

Example 1

If Ashley has a balance of $3,000 before filling out this deposit slip, what will her new balance be?

Dollars Cents

Cash

List Checks 425 33

20 00

550 00

Subtotal 995 33

Less Cash 200 00

Total

Check for understanding

Ashley has x dollars in her account. She deposits d dollars, two checks each worth c dollars, and takes out b dollars in cash. What is her new balance?

Solution: x + d + 2c - b

Determine the ending balance