Checking 101
Checking Out Checking
Accounts
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Checking Account Basics
A check is a written order that represents cash
Credit Union checking accounts are also called SHARE DRAFT accounts
A share draft is equivalent to a check, and is accepted almost anywhere
How Does It Work?
•You write out a check to a store for payment
•The store accepts the check as payment, and deposits it into their bank account
•That bank sends the check to the Federal Reserve Bank
•The Federal Reserve Bank cashes the check and pulls the funds from your account
Choosing a Checking Account
When shopping for a checking account, compare the following:
Fees & Fines: Service charges are usually based on the number of checks you write a month, your mini
mum balance, and other accounts you have.
Interest: Some checking accounts pay interest if they maintain a minimum balance. Generally, the
higher your balance, the more interest you’ll earn, and the fewer fees you’ll pay.
Minimum Balances: Many accounts require you to keep a minimum amount of money in your check-
ing account to avoid service fees.
Writing a Check
Although checks and share drafts come in different designs and colors, check writing requirements are all the
same.
1.DATE- must be correct, post-dating a check can’t stop it from being cashed
2.PAY TO THE ORDER OF- must be the exact name of the person or business you are writing the check to
3.DOLLAR AMOUNT BOX- must match the amount on the next line
4.DOLLAR AMOUNT LINE- dollar amount must be written out completely, this amount is the legal amount
of the check
5.MEMO LINE- is not required to be completed for cashing, it’s purpose is for your records
6.SIGNATURE- is required by the person writing the check, who must be on the account where the check is
being written from
Depositing a Check
•Before cashing or depositing a check, it must be endorsed (or signed).
•You must sign the check on the backside and exactly match what’s written on the Pay to the Order line on the
front of the check.
•If yo