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Open Checking Account

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					                                       Lesson 2
                              Opening a Checking Account

ModuleE: Economics and Personal              Responsibility:
Finance                                      All virtual enterprises employees
Unit 1: Banking in the Real and Virtual
Worlds

Standard:                                    Timeline:
Virtual enterprise students will establish   End of week 5 for 10-hour program
personal financial goals and practice        End of week 8 for 5-hour program
sound financial decision-making.



Lesson           Virtual enterprise employees will:
Objective(s):        1. Define basic banking terms introduced in this lesson.
                     2. Complete an account signature card.
                     3. Endorse checks for deposit.
                     4. Complete a deposit ticket.



                              Instruction and Procedures

What you need to know:

Opening a checking account is easy. The steps are listed below.

1.   When you arrive at the bank, you will need to see a customer service
     representative. The customer service representative will ask you questions
     about how you plan to use the account. Based on your answers, the customer
     service representative will help you choose the type of account to best meet your
     needs.
2.   The customer service representative will ask you to complete a checking account
     agreement form. The agreement will explain how your account will work. You will
     be asked to provide identification for your protection.
3.   Next you must sign a signature card. The signature on your checks must match
     the signature on the card. The signature card provides account security.
                                                                                                                         o
                                              VEC                                    Personal Checking
                                                BANK
                                                                         Account Number ________________
                                                                         Date _________________________

                                                            ACCOUNT SIGNATURE CARD

                       Name(s) ______________________________________              Individual    _____
                         or    ______________________________________              Joint         _____
                       Address ______________________________________
                               ______________________________________
                       Phone   ______________________________________

                       Social Security No.    ________________________   Driver's License No./State __________________
                       Social Security No.    ________________________   Driver's License No./State __________________

                       Authorized Signature                              Authorized Signature

                       _______________________________                   ____________________________________




4.   Choose the style, color, and pattern you want on your checks. The customer
     service representative will have a variety of choices. Keep in mind that you will be
     paying for these checks. A common type of checkbook used today is the
     carbonless check with a check register to keep track of your balance. This form
     of checkbook makes a “carbon copy” of the check as it is written so that you have a
     copy for your records. (You will receive a starter checkbook to use until your
     personalized checks arrive.)
5.   Make your opening deposit by completing a deposit ticket listing all items you are
     depositing, currency, coin, or checks. Most banks require a minimum of $100 to
     open an account. When you have checks to deposit, they must be endorsed.



             ----------DEPOSIT TICKET----------
                                                                                                          DOLLARS            CENTS

                     YOUR NAME                                       CASH
                    YOUR ADDRESS                                     CHECKS
             CITY, SOUTH CAROLINA 12345

          DATE ___________________________
                                                                     SUBTOTAL
          _________________________________
                 Sign here if cash received from deposit.
                                                                     LESS CASH RECEIVED


                                                                     NET DEPOSIT

              ":0246813: 579~1234"


Endorsing Checks

Checks cannot be cashed or deposited until they have been endorsed. To endorse a
check, the payee, person(s) named on the front of the check, must sign the back of the
check. The location for the endorsement is printed on the back of the check.

There are three types of endorsements--blank, restrictive, and special. Each is used for
a different purpose.

A blank endorsement is the signature of the payee exactly as it appears on the front of
the check. If the name is written incorrectly, the check should be endorsed as written
with the error followed by the correct version.

A restrictive endorsement restricts the use of the check. The most common
“restriction” is “For Deposit Only” followed by the signature. This type of endorsement is
safer than the blank endorsement because it limits or restricts the use of the check.
This endorsement is used when a deposit is mailed or dropped in the night deposit box.
If the check is lost or stolen, it cannot be cashed.

A special endorsement is an endorsement that transfers ownership to someone else.
The endorsement contains the words “Pay to the order of (new payee)” and the
signature of the original owner of the check.

   ENDORSE HERE                                          ENDORSE HERE

                                                                    For deposit only
          Amanda Green                                              Account #606673
                                                                   Amanda Green
                                                           DO NOT SIGN/WRITE/STAMP BELOW THIS LINE
    DO NOT SIGN/WRITE/STAMP BELOW THIS LINE



         Blank Endorsement                                   Restrictive Endorsement

                                 ENDORSE HERE


                                         Pay to the order of
                                                John Doe
                                              Amanda Green
                                   DO NOT SIGN/WRITE/STAMP BELOW THIS LINE


                                        Special Endorsement

Simulate opening a checking account by completing the Opening a Checking Account
Task.



Resources:
Eggland Steven S., Les R. Dlabay and James L. Burrow. Intro to Business. 5th ed.
      Cincinnati: South-Western, 2004.

Ryan, Joan S. Managing Your Personal Finances. 4th ed. Cincinnati: South-Western
      2002.
Miller, Roger LeRoy and Alan D. Stafford. Economic Education For Consumers. 2e
        Cincinnati: South-Western 2004

http://www.nefe.org
http://www.ntrbonline.org
http://www.practicalmoneyskills.com
http://www.practicalmoneyskills.ca/moneyskills/consumer/lifeevents
http://www.consumerdebit.com

				
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