using money in your checking account

Posted : February 12, 2018
Last Updated : February 12, 2018
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using money in your checking account

The steps involved in depositing money in and taking money out from a checking account can be confusing for a first-time bank user. Here are detailed steps to follow so you know what to expect with your first checking account.

Depositing Money

Cash Deposit with a Deposit Slip
Deposit slips are included in your checkbook, and have your account number printed on them. When making a cash deposit with a deposit slip:
  • Make sure the deposit slip has your correct account and address information. If not, write it in the spaces provided.
  • Write in the transaction date.
  • Add up the total cash and checks and write the amounts in the correct spaces (e.g., cash in the “Cash” or “Currency” boxes and checks in the “Check” box).
  • Give the teller your deposit slip and your cash. The teller will count the money before depositing it into your account.

Check Deposit with a Deposit Slip
The back of the check has what’s called an endorsement area. Endorsing a check means to sign the back of it so you can deposit or cash the check.

If depositing the check, you should write “For Deposit Only” and sign your name in the endorsement area. “For Deposit Only” prevents others from cashing your check if it is lost or stolen. When you receive a check as payment and want to cash it, you’d only sign your name in the endorsement section.

If you have more checks than will fit on the front of the deposit slip:
  • Use the back of the deposit slip to list them.
  • Add up the amounts of the checks on the back of the deposit slip.
  • Transfer this total to the front.
  • Enter this amount in the box labeled “Or Total From Reverse.”

When you deposit your check(s) you can also receive cash back. Net deposit is the amount that will go into your account after you subtract any cash that you’re receiving.

Direct Deposit
Direct deposit occurs when your employer or a government agency electronically deposits your paycheck or benefits into your checking account. Not all employers offer direct deposit; ask your employer what options are available to you.

ATM Deposits
An ATM allows you to make deposits and withdrawals 24 hours a day, 7 days a week. You can also use an ATM to check your account balance and transfer money between savings and checking accounts. In order to use an ATM you must have a Personal Identification Number (PIN). PINs are a “secret code,” usually 4 digits, which you enter with the keypad on the ATM when you first insert your card into the machine. You should never tell anyone your PIN, or write it down where you keep your ATM/debit card. Otherwise, someone may use your PIN and take all the money from your account.

If someone uses your card without your permission, federal law protects you. However, to be fully protected and to minimize your losses, report lost or stolen ATM/debit cards and/or unauthorized charges to your bank immediately.

With some ATMs you can deposit checks and cash directly into the ATM. Other ATMs require you to put your deposit into a deposit envelope provided in a tray or box near the ATM. Be sure to fill in the information listed on the envelope if your bank requests it. This information may include your name, phone number, account number, and deposit amount. Include a deposit slip in the envelope, and insert the envelope into the ATM when it prompts you to do so.

To make an ATM deposit:
  • Insert your ATM card, using the illustration indicating which end of the card to insert first. On some machines, you’ll insert and remove your card in one motion; other machines will take your card until the end of the transaction.
  • Enter your PIN.
  • Select “Deposit” from the touch screen menu or the appropriate button to the side of the screen.
  • Use the keypad to enter the amount you’re depositing.
  • Insert the cash or checks as directed. Some ATMs now have electronic readers. If you insert your cash or checks, they will automatically count and add the amount for you. For this type of machine, you don’t need a deposit slip.
  • The machine may ask if you want to complete another transaction and if you want a receipt – if you do, press “Yes”; if not, press “No.”
  • After you finish, the ATM will return your ATM card. Don’t forget to take your ATM card if the ATM returns it at the end of a transaction.

Do you expect to make a lot of ATM withdrawals? Consider a bank with conveniently located ATMs and free withdrawals from its own machines. Depending on the bank and the account, your bank may charge a fee for using another bank’s ATM – in addition to the fee the other institution may impose.

Ways to Take Money Out of Your Account

To take money out of your bank account, you can use your debit card, withdraw cash at an ATM or Point of Sale (POS), write a check, use electronic banking, or use the teller service and a withdrawal slip.

How to Withdraw Money from the ATM
To withdraw money using an ATM:
  • Insert your ATM card, using the illustration indicating which end of the card to insert first. On some machines, you’ll insert and remove your card in one motion; other machines will take your card until the end of the transaction.
  • Enter your PIN.
  • Select “Withdrawal” (or “Withdraw”) from the touch screen menu, or the appropriate button to the side of the screen.
  • Use the keypad to enter the desired withdrawal amount. Most ATMs deliver funds in multiples of $10 or $20.
  • Retrieve your money from the cash slot.
  • The machine may ask if you want to complete another transaction or if you’d like a printed receipt – if you do, press “Yes”; if not, press “No.” If you print a receipt, save it so you can accurately enter the transaction in your check register.
  • If you make any mistakes when entering the information, you may be able to press “Clear” to re-enter the information or “Cancel” to cancel the transaction and start over.
  • Don’t forget to take your ATM card if the ATM returns it at the end of a transaction.

A Note About ATM Fees
If you have a limit to the number of ATM transactions you can make per month, be sure to withdraw all you need so you don’t get charged for extra transactions.

Also be aware of the fees your bank charges for using another bank’s ATM – in addition to the fee the other institution may impose. For example, if you withdraw $20 from another bank, your bank may charge you up to $3 for using another bank’s ATM and the other bank may charge you a $3 fee. That means you’ll be withdrawing $20 and paying $6 in fees, which is equivalent to a fee of 30 percent.

In addition, be careful not to overdraw your account, as you may incur NSF/overdraft fees. Remember to keep track of all ATM transactions and fees to avoid overdrawing your account.

Steps to Writing a Check
A check is a written contract between you and your bank. When you write a check, you’re asking the bank to take money from your account and give it to someone else. There are three steps you need to take to write a check:
  1. Make sure you have enough money in your account.
  2. Complete all the blank spaces on the check.
  3. Record the transaction in your check register.

Preprinted Information
When you receive your first box of checks you can expect to find information already printed on the checks including:
  • Your name and address.
  • The check number and codes.
  • Your bank’s name.
  • Routing number.
  • Your account number.

DON’T have your Social Security or driver’s license number preprinted on your checks because it will put you at risk for identity theft.

Writing a Check for Cash
If you want to use a check to take cash out of your account:
  • Write “Cash” or your name in the “Pay to the Order of” area on your check.
  • Don’t write a check for “Cash” until you’re inside the bank.
  • Like writing any other check, remember to record the withdrawal in your check register.

Use the Teller Service and a Withdrawal Slip
Your bank may only require you to sign a receipt printed by the teller when completing a withdrawal. If your bank provides or requires you to use a withdrawal slip, you may need to fill in:
  • The date.
  • Your name, if not preprinted.
  • Account number and account type (e.g., checking or savings), if not preprinted.
  • The amount you wish to withdrawal.
  • Your signature.

Completing a deposit slip in order to receive cash back is another option for withdrawing money from your account.



Source: PlanningYourDreams.org
 

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