Learn about. How to deposit money. How to make withdrawals and write checks. How to keep track of your money

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1 Cumberland Security Bank s Checking School Learn about How to deposit money How to make withdrawals and write checks How to keep track of your money

2 Depositing Money You can deposit cash and/or checks into your account by using deposit slips found in the back of your checkbook behind checks. If you have run out, or do not have your checkbook with you, the bank will have blank slips for you to use. There are a few areas that need to be completed on the deposit ticket before giving the transaction to the teller. Use either a black or blue pen to complete the form and remember to write neatly. Here are the spots that should be filled out on your deposit ticket: 1. Date: The date you are depositing money. 2. Cash: The amount of cash, if any, you are depositing. Add all cash together and write it here. 2

3 3. Check Entry: The amount of any checks you are depositing. If you have more checks than allowed for on the form please refer to number four (4). List each check on its own line. 4. Additional Check Entry Area: The back of the deposit ticket has spaces for additional checks if you run out of room on the front. 5. Total From Other Side: If you had more checks than allowed for on the front of the deposit ticket and had to use the additional check entry area you will need to add the checks that on are the back of the deposit ticket and put the total in this section. 6. Sub Total: Add items 2, 3, and Less Cash Received: If you want to deposit part of the money, and get part of the money in cash, write down how much you want to receive in cash. 8. Sign Here: If you want cash back, sign your name here. 9. Net Deposit: Add all the cash and all the checks together. If you receiving cash back, subtract that amount. The result is you net deposit. Write that amount here. 3

4 Endorse a Check Almost any job pays your wages by a check. To deposit the check, you need to endorse the back of it. This means that you sign your name in either blue or black ink on the back of the check. You should sign your name the way it is written on the check. If your name is spelled wrong, also sign your name the correct way on the next line. There are a few ways to endorse checks as shown: Blank Sign your name the same way it is Endorsement written on the front of the check. Only sign it when you are ready to cash it or deposit the money into your account. Once the check is signed on the back, someone else could get your money if you lose the check. Special You would sign like this if you Endorsement wanted to give someone else the money. Write pay to the order of and that person s name below it. Then sign your name underneath. Now only that person can cash the check. Restrictive When you want your check to be Endorsement very safe, such as when you send it in the mail to Cumberland Security Bank, use this type of endorsement. Write for deposit only and sign the underneath. Now the check can only be deposited into your account, not cashed. 4

5 Writing Checks With a little practice, writing checks is easy. Always use either a blue or black pen, and write neatly, when writing checks. You will always find the following six spots on a check: 1. Date: Write the date. 2. Pay to the Order of: Write the name of the check s recipient. 3. $ Amount: Write the check s amount using numerals. When you write the number, start at the left and don t leave space because people could add more numbers. 4. Dollars: Write, in words, how much the check is for. When you write the words for the dollars, start at the left side. Write any cents as a fraction and draw a line through the extra space. 5. Signature: Sign your name on the signature line, just like it is on the top of the check. Don t sign it until you use it. If you sign it ahead of time, someone else could use the check. 6. Memo: Note what the payment is for. It is important to write your checks legibly to make sure your check is accurately processed. 5

6 Managing Your Money Check Register A check register helps you keep track of the money in your checking account. That s where you write down everything you do with your account. Whenever you deposit money or withdraw money, or use your ATM or debit card, write it in the check register immediately. When you write something in your check register, we call it recording a transaction. Let s look at a register and see how it works. The columns in your check register are labeled. Here is what each column is for: AD AP ATM DC E SC TT TD O Codes Automatic Deposit Automatic Payment Automatic Teller Machine Debit Card Electronic Check Service Charge Telephone Transfer Tax Deductible Other 1. Number or Code: This is the check number. You can find it in the upper right corner of each check. Every check has a different sequential number. You can also use this column to write codes for anything other than a check. The codes are shown on the left and you can also find them listed in your check register. 2. Date: Write the date you wrote the check or did the transaction. 3. Description of Transaction: This tells what you did. Did you deposit money? Write a check? Use the ATM? Describe your transaction here or where you did the transaction or who the check was made payable to. 4. Payment/Debit: Write the check or withdrawal amount here. 5. Item Cleared: When you get your statement, every month you ll place a through this box when you see the transaction listed. 6. Service Fee: If you will receive a charge or fee for the transactions, record that here. Examples of fees would be from an ATM machine or writing too many checks on a Money Market account. 6

7 7. Deposit/Credit: Did you deposit money into your account? Write down any deposits into your account. 8. Balance: To find out how much money you have, add the deposited money to what you had before, or subtract the withdrawal amount from what you had before. The amount left is your balance. Monthly Statement Every month you will receive your statement for your checking account. Savings account statements are mailed every 3 months. Your statement will include all processed checks, ATM withdrawals, telephone transfers, debit card transactions, and all deposits within the statement cycle. Your statement will also show your ending balance which is the balance of your account on the day the statement was printed. You may also receive images of your checks if your account allows for that. The images are of checks that have already been written and have cleared the bank. Any checks you have written that has not cleared the bank are called outstanding checks. The purpose of your monthly statement is to give you information about your account s activity every month. Here are the different sections: 1. Bank Information: Cumberland Security Bank name and logo. 2. Address: This is your personal address where your statements are mailed. 3. Account Information: Here is where you will find the type of account you have, account number and the statement date. 4. Deposits: This is where your deposits are listed. You ll see the date and the amount of money you deposited. 5. Checks and Deductions: These are all the checks you wrote for the month. You ll see dates, check numbers, and the amounts you wrote the checks for. If you see * by check numbers, that means either you are missing a check, or that check is outstanding. You ll also find your ATM withdrawals, Debit card transactions, and other electronic debits. 6. Daily Balances: You ll see dates listed, and how much money was in your account on that day. 7. Ending Balance: Here is a summary of your account for the month. You ll see how much you started with, how many withdrawals you made, how much money you deposited, and how much money you have left in your account on the day the statement was printed. 7

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9 Balance Your Account In this section we ll talk about how to keep records. The first thing we ll cover is how to reconcile your accounts. That just means you ll see how much you deposited into your account, how much you spent, and how much you have left. To reconcile your account you do two things: First, look at your check register and your statement together and compare them. Here s how to start. 1. First open the envelope with your statement. Cumberland Security Bank does not send your canceled checks back to you so they will not be included with your statement. If you have specific accounts, you will receive a picture image of your checks. 2. Look at the statement; find the first check number listed. 3. Look at your check register. Find that same check number and place a check mark in the column labeled. Do this for every check on your statement. 4. Repeat Steps 2 and 3 above for every deposit. Check it off on your statement and check it off on your register. 5. If you see checks in your check register that are not listed on the statement they have not cleared Cumberland Security Bank yet. Don t check them off. They will be listed on a future statement. 6. If you have any other service fees or charges for checks, ATM withdrawals, or automatic deductions (i.e. a car loan or mortgage payment) listed on your statement, write them in your check register. Don t forget to subtract those charges from your balance in your check register. 7. If your account earns interest, add the interest amount to your check register. 8. Now your checkbook should be up-to-date. Most of the time, your checkbook balance and the statement won t match. That is normal. This happens because of those outstanding checks we discussed earlier and any deposits that you made after the statement was printed. Your statement will include a reconciliation form on the back. This is a form to help you reconcile your accounts. Just like all the other forms we ve talked about, there are spots for you to fill in. 9

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11 The reconciliation form guides you to: 1. Write down the ending balancing Cumberland Security Bank has for you on the day the statement was printed, shown on the front of the statement. 2. List and total any deposits that were made after the statement date and that do not show up on the statement. 3. Add together all checks that have listed in your check register but are not listed on the statement in the proper column. 4. Add line 1 with line 2 and then subtract line 3. Now the balance of your checkbook should match the ending balance on your statement. This is your actual balance. 11