Learn to Manage Your Checking Account and Protect Your Money

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1 Managing Your Checking Account Learn to Manage Your Checking Account and Protect Your Money Benefits of Your Checking Account Maintaining your TFCU share draft (checking) account responsibly and accurately is a great way to accomplish five important things: Safety: Checks are safer to carry around and mail than cash. Budgeting: Keeping records of checking activity helps you better budget your expenses and income. Convenience: Electronic services such as Home Branch (Internet account access), MoneyPlus TM Visa check card or ATM card and Command Center (telephone account access) give you easy access to your account 24 hours a day. Establish Credit: A well-maintained checking account can serve as a good reference when you begin to establish credit. Overdraft Protection: Your checking account at TFCU is automatically protected by Overdraft Coverage (see current rate sheet for NSF fee). You may also choose to sign up for optional overdraft transfer and have funds pulled from your savings account or one of your other designated accounts to cover a submitted check, in case of an overdraft, without a fee. How to Write a Check Handle your checks as carefully as you do your cash. It is important to complete each check correctly. 1. Write the date. 2. Write the name of the person or company you are paying. Draw

2 a line after the name. 3. Write the amount in figures directly next to the dollar sign. 4. Write out the amount on the next line, beginning at the extreme left. Write in amounts of dollars and fractions of dollars. 5. Draw a line through any unused space to the right of the amount. 6. Write what the check was for. 7. Sign your name consistently on all checks. Avoid using illegible writing or a hand-printed signature that can be easily copied. How to Endorse Your Checks Before you can cash or deposit a check made out to you, you must sign, or endorse, it. Most checks have a designated line for your signature. If not, endorsements should be made within 1 and 1/2 inch from the left edge on the back of the check. There are three types of endorsements: 1. Blank endorsement is the signature of the person to whom the check is written. Put your checking account number on the back, under your signature. Once endorsed, anyone can cash it. To be safe, endorse your checks only when you are ready to cash or deposit them. 2. Restrictive endorsement states that the check is for deposit only, which you write on the back of the check. Put your checking account number on the back, under the notation for deposit only. No signature is required. Use this endorsement when mailing a deposit to your credit union. 3. Special endorsement makes a check payable to a third party and prevents anyone else from cashing it. Sign your name, then write pay to the order of (name) below your signature. Other Helpful Hints Never use pencil or erasable pen when writing a check. Don t make a check out to cash. Instead, write your own name

3 on the payee line. Never sign your checks before you are ready to use them. Flip through your checks from time to time. Forgers sometimes steal checks from the back to postpone detection. If you make a mistake, write VOID in big letters across the check and in your register. Then destroy the check and write another. Destroy all old checks if you change your name and address. How to Make a Deposit to Your Account Use the deposit slips that come with your checks for making deposits into your account. In the designated areas, you will write: 1. The date of the deposit 2. The amount of currency (paper money) and coin deposits 3. All checks, with each amount listed separately 4. The subtotal of the checks, currency and coins 5. The amount of cash you want back 6. The total, minus cash received 7. Your signature, if you wish to receive cash back Endorse all checks properly before making your deposit. Direct Deposit Your Pay Have your net pay, retirement, Social Security or other recurring payments directly deposited to your TFCU checking account for time-saving convenience. Duplicate Checks TFCU offers checkbooks that create a carbon copy of each check you write. These are called duplicate checks. When all your checks are used up, you are left with a book of duplicates for your records. It is still important to keep your check register up-to-date, so you will know at all times what your balance is. (See more information about maintaining a register below.)

4 Balancing Your Checkbook Steps for Balancing: 1. Verify and check off in your check register each deposit, check or other transaction shown on your statement. 2. Enter in your register and SUBTRACT: Any checks or other deductions (automatic or electronic payments, ATM withdrawals, MoneyPlus purchases) on your statement that you have not already entered Any service charge on your statement 3. Enter in your checkbook and ADD: Any deposits or other credits on your statement you have not already entered Any dividends on your statement 4. List from your check register any checks or other deductions not on your statement: NUMBER TOTAL CHECKS: AMOUNT $ 5. List any deposits from your register not on your statement: DATE AMOUNT

5 TOTAL DEPOSITS: $ 6. Enter ENDING BALANCE shown on your statement: $ 7. Add totals from #5 and #6 and enter total here: $ 8. Enter total from #4: $ 9. Subtract #8 from #7 and enter difference here: *$ *This amount should agree with your check register balance. Using a MoneyPlus TM Card or ATM Card A MoneyPlus TM Visa check card gives you 24-hour access to the funds in your checking account. All you need to access your account from any ATM is your card and your Personal Identification Number (PIN). Instead of writing checks, use your MoneyPlus card anywhere Visa is accepted to pay for purchases. The money is debited from your checking account. Just remember, with any type of electronic transaction, be sure to write it in your check register for an accurate balance. How to Keep a Check Register It s important to keep a record of all transactions in your checking account including deposits, withdrawals, fees and dividends.

6 That s what your check register is for. Even though your TFCU checks have carbon copies, keeping the register current is important and lets you know how much money you have in your account at all times. You will receive a check register when you order checks. There are two lines for every transaction. On the top line, record: The number of the check or another transaction type (see abbreviations for various transaction types on the form below) The date you write the check, withdraw funds or make a deposit The name of the person or company the check was written to (if it was a deposit, dividend, ATM cash withdrawal, transfer of funds from another account, or service charge, record that instead) The amount of the payment or debit Any fees charged If the transaction was a deposit, credit or dividend, write the amount under the section deposit/credit The amount to be added to or subtracted from your balance On the second line, write: The reason for the check (lunch, tires, clothes, etc.) The new balance after adding or subtracting the entry TRANSACTION TYPES: D - Deposit, ATM - ATM Withdrawal, CC - Check/Debit Card, ET - Electronic Payment, AD - Automatic Deposit, T - Tax Deduction, O - Other TRANS. TYPE OR CHECK NO. DATE DESCRIPTION OF TRANSACTION /31 Sam s Discount Grocery Store groceries for dinner party CC D ATM 2/4 MoneyPlus purchase (Bubba s Gas Stop) tank of gas PAYMENT/ DEBIT (-) /6 deposit insurance refund check 2/8 ATM withdrawal FEE IF ANY (-) ( ) DEPOSIT/ CREDIT (+) BALANCE $ Federally insured by NCUA RV