How to Maintain Your Checking Accounts

Some Checking Account Terms
Account Number - Number that identifies your checking account and should be on all your checks and deposits.
Cancelled Checks - Checks that have been paid by the institution.
Check - The printed form used by the customer ordering the institution to pay a definite sum of money from the customer's checking account to a designated payee.
Deposit Ticket - The printed form upon which the depositor lists all cash and checks to be deposited to his or her account.
Drawer - The person who orders an institution to pay a definite sum of money from his or her checking account.
Endorsement - The signature of the payee on the back of the check. There may be many endorsements on the back of a check.
Payee - The person, firm or organization to whom the check is payable.
Reconcilement of Account - The steps taken for verifying the balance of the checkbook with the institution statement.
Service Charge - A charge made by an institution for servicing the checking account.
Statement - The form issued by an institution to its customer on a regular basis which shows the balance at the beginning of the period, checks paid by the institution, deposits to the account, service charges, if any, and the balance at the end of the period.

The Anatomy of a Check
1. Check number
2. Date of check
3. ABA and Federal Reserve Numbers
4. Payee
5. Amount of check (in figures)
6. Amount of check (in words)
7. Name and location of institution on which check is drawn.
8. Transit field, corresponds to #3. Is magnetically printed for routing by computer.
9. Your account number, magnetically imprinted for computer processing.
10. Check number in magnetic ink for computer processing. Corresponds to #1.
11. Signature of drawer.
12. Amount of check in magnetic ink for computer processing.

How to Write a Check
1. If your checks are not numbered, number them consecutively.
2. Date each check properly. If dated ahead, the institution may return it.
3. Type or write in ink the name of the person or firm to whom the check is payable. Never use pencil.
4. Enter the amount of the check in figures as close to the dollar sign as possible so that additional figures can't be added.
5. Write the amount of the check (in words) starting under the "Pay To The Order Of" line and at the left edge of the line. Draw a heavy or wavy line between the amount and the word "Dollars."
6. Sign your name on bottom line exactly as it appears on the institution signature card.
7. Memo line to record what the check is in payment of.
8. Be sure that the check has your account number on it.

Making a Deposit
The printed form that is used for making a deposit is called the checking account deposit ticket. One of the more commonly used deposit tickets is illustrated below. Deposits after 3:00 pm will be credited on the next business day.

When making a deposit:

1. Be sure that the deposit ticket has your account number on it.
2. Date the deposit ticket.
3. Show total currency and total coin that is to be deposited.
4. List checks separately that are to be deposited. If necessary, use the back side of the deposit ticket for additional checks and enter at 4A. Total the deposit and enter it at 5. If no cash back is desired, enter deposit at 7 again. If cash back is desired, show the amount at 6 with the net deposit shown at 7.

Your Checkbook Register
The checkbook register is that part of your checkbook where all the checks you write and deposits you make are recorded. A typical page from a checkbook register is illustrated here. When writing checks record the:

1. Check number.
2. Date of the check.
3. The payee.
4. The amount of the check. Subtract the amount of the check from the previous balance and write in the new balance. Be sure to record the checks in your checkbook register as they are written.
5. Deposits should be recorded in the deposit column and added to the previous balance.

How to Balance Your Checkbook
Open your statement and look for charges (other than checks) made against your account.

Subtract these charges from your checkbook balance as shown in your checkbook register.

Sort cancelled checks numerically if returned by the institution.

Compare the amounts on your cancelled checks and deposits with the amounts written in your checkbook register. Check off the cancelled checks and deposits in your checkbook register.

This form can be used to assist you in balancing your account.
1.Insert the ending balance on your statement.
2.Add deposits not credited to your account.
3.Deduct all checks outstanding (not checked off in your checkbook register, therefore not yet charged to your account).
4.Your adjusted balance should agree with the balance in your checkbook register.

Helpful Hints
If your adjusted balance does not agree with your checkbook register:

1. Recheck the addition, subtraction and corrections made in your checkbook register and on your reconcilement form.
2. Verify the carryover balance from page to page in your checkbook register.
3. Be sure you have deducted any service charges made by the institution from your checkbook register.
4. Verify the magnetically printed amount located on the bottom right hand corner of the cancelled check or any deposit slip with the amount listed in your checkbook register.