| A | B |
|---|
| blank endorsement | payee signs the back of the check |
| canceled check | a check that the bank has paid and deducted from your checking account |
| cashier's check | also called a bank draft--a check that the bank writes from its funds--the bank takes payment out of your account then the teller makes out a cashier's check and the bank officer signs it |
| certified check | a personal check that the bank guarantees is good--the check is written, taken to the bank, and the bank stamps "certified" on the bank--the bank then puts a hold on that amount in your account |
| check | a written order to a bank to pay the stated amount to the person or business (payee) named on it |
| checkbook register | booklet used to record checking account transactions--it helps track payments, fees, interest and deposits |
| demand deposit | funds that can be withdrawn at any time without any advance notice to the financial institution. Demand deposits can be "demanded" by an account holder at any time. |
| floating a check | knowing you don't have enough money in your checking account, but writing a check anyway |
| overdraft | a check written for more money than your account contains |
| reconciliation | Making sure that your checkbook register with the bank statement |
| restrictive endorsement | restricts/limits the use of a check |
| special endorsement | transfer ownership of the check to someone else |
| stop payment order | a request for a bank to not pay a check |
| Reasons for having a checking account | convenient, safer than cash, built in record-keeping system, access to other bank services |
| Responsibilities of having a checking account | write out checks carefully, check and verify bank statement each month, keep cancelled checks or bank statements |
| Why would you be asked your mother's maiden name when opening a bank account? | To verify the identify of the person opening the account |
| Why should you record online bill payments in your checkbook register? | The bank is taken the payment out of your account--so you should keep track of the transaction |
| Why do you need to reconcile your checking account each month? | Because your check register might not match the bank's--there may be outstanding checks, outstanding deposits, bank fees or bank interest |
| How is a debit card different than a credit card? | When using a debit card--the money comes directly out of the checking account--when using a credit card the person pays the bill at the end of the month or at least pays a minimum payment |
| What's the purpose of a PIN number? Personal Identification Number | One more level of defense for someone using your account or accessing your account without your permission |
