Your Checking Account

Your Checking Account What You Need to Know Getting Started Staying in Balance Practice Examples Provided by Farmers & Merchants Union Bank

Contents Learn About Checking Accounts 1 How to Write a Check 2 Using Your Debit Card 3 How to Record Your Transactions 5 Making a Deposit 6 Endorsing a Check 8 Reviewing Your Monthly Statement 9 Balancing Your Account 11 Checking Do s and Don ts 14 Glossary 15 Practice Exercises 16 Words that you see underlined throughout the guide are explained in the glossary i

Learn About Checking Accounts For thousands of years, people have used some sort of currency or type of money to pay for things they want Different countries and cultures have used everything from seashells to pigs, to purchase goods and services Today, there are four main ways to pay Cash, Credit Cards, Debit Cards and Checks Whether you have just opened a checking account or plan to in the future, this guide will give you the information you need to use a checking account What s so great about a checking account? A checking account is a transaction account that allows you to authorize the transfer of money to another person or business by writing a check It is a deposit account for immediate use, ie paying one s bills Most customers keep money in a checking account for a shorter period than in a savings account, because checking accounts typically don t pay interest If they do it s usually at a lesser rate than a savings account Checking accounts allow you to carry your money without the risk factors of actually carrying cash Money in a checking account is also insured by the Federal Deposit Insurance Corporation (FDIC) 1

How to Write a Check Writing a check is easy, with a little practice When you write checks, always use a blue or black ink pen and write neatly Every time you write a check, you'll fill in the following six spots John C Doe 00-67890000 12345678 1 Today s Date 501 ABC Car Rental 8500 PAY TO THE 2 ORDER OF $ 3 4 Eighty five and no / 100 DOLLARS Farmers & Merchants Union Bank Columbus, Wisconsin (920) 623-4000 wwwfmubcom rental car 5 6 Memo 1 2 3 ı:075902670 1234 567ıı 0501 John C Doe Security features included Details on back SAMPLE-VOID 1 2 3 4 5 Date: Write the date Pay to the Order of: Write the name of the check s recipient $ Amount: Write the check s amount using numerals When you write the number, start at the left and don t leave space People could add in more numbers if you do 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 (See sample) Draw a line through the extra space Memo: Note what the payment is for (See sample) 6 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 It is important to write your check legibly to make sure your check is accurately processed Other important information on your check you should know 1 2 3 Bank Routing Number Account Number Check Number: Should match check number in upper right corner of check 2

Using Your Debit Card You may apply for a debit card with your checking account A debit card looks like a credit card, but works like an electronic check because the payment is deducted directly from your checking account A debit card can offer a quick and convenient alternative to writing a check When using a debit card at a retail store, you or the cashier will run your card through a scanner that enables your financial institution to verify electronically that the funds are available and approve the transaction Most debit cards can also be used to withdraw cash at ATMs and some debit cards even allow you to get cash back at select merchants Your debit card purchases and withdrawals may be harder to keep track of, so make a habit of writing the transaction into your checkbook register when the transaction takes place It is still possible to overdraw your account using a debit card, which may trigger fees You may also incur fees when withdrawing money from an ATM machine that is not operated by or networked with your financial institution Some bank ATMs run on the same operating system and agree to network together to offer a larger range of ATMs for their customer base to use at no charge Check with your financial institution for a list of ATMs you can use at no charge 3

Using Your Debit Card (Continued) There are usually two ways you can complete a transaction using your debit card, although not all merchants may give you an option First, it can be run as a credit Even though it is considered a debit card, you can process the transaction as a credit It will still come directly out of you checking account Most credit transactions will require your signature The second way to complete a transaction is to run your debit card as a debit Again, it comes directly out of your checking account, but instead of a signature, it will usually request your PIN number When you apply for your debit card, your financial institution will either assign you a PIN number or let you choose one This number is usually a four digit number Your PIN number should never be given out to anyone and should always be kept separate from your debit card Also, when you receive your debit card, be sure to sign the back immediately Use a black or blue pen or fine tipped permanent marker If your card is ever lost or stolen, contact your financial institution immediately to cancel the card 4

How to Record Your Transactions 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 So let s take a look at a check register and how it works The columns in your check register are labeled Here s what each column is for: AD-Automatic Deposit AP-Automatic Payment ATM-Teller Machine DC-Debit Card NUMBER OR CODE 501 T-Tax Deductible TT-Telephone Transfer TRANSACTION DESCRIPTION PAYMENT AMOUNT FEE DEPOSIT AMOUNT $ 200 00 5/25 ABC Car Rental 85 00 $ 115 00 5/26 Transfer to Savings $ 100 00 TT 15 00 5/29 Paycheck deposit AD 345 15 360 15 1 2 3 4 5 6 7 8 Codes ATM Automatic Teller Machine D Deposit DC Debit Card E Electronic Check TT Telephone Transfer T Tax Deductible O Other 1 2 3 4 Number: This is the check number You ll find it in the upper right corner of each check Every check has a different sequential number Date: Write the date you wrote the check Description of Transaction: This tells what you did Did you deposit money? Write a check? Use the Automated Teller Machine (ATM) or debit machine? Make a telephone transfer? Describe your transaction here Payment/Debit: Write the check or withdrawal amount 5 Code for Transaction: This is where you fill in a code for transactions you make when you aren t writing a check When you get your statement, every month you ll place a through this box when you see the transaction listed 6 Service Fee: A financial institution may charge you a fee for various reasons depending on the type of account you have or when you withdraw money from the ATM Write that fee in this space 7 Deposit/Credit: Did you deposit money into your account? Write down the amount of the deposit 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 money left is your balance When you write a check, withdraw money from an ATM, or deposit money into your account, write it down right away It s easy to forget if you wait 5

CURRENCY COUNT FOR FINANCIAL INSTITUTION USE ONLY X 100 X 50 X 20 X 10 X 5 X 2 X 1 T O T A L $ CHECKS LIST SINGLY Parker Jones Davis TOTAL MUST BE ENTERED ON FRONT SIDE DOLLARS CENTS 5 0 00 1 5 00 2 0 00 8 5 00 DELUXE H D-101 CHECKS AND OTHER ITEMS ARE RECEIVED FOR DEPOSIT SUBJECT TO THE PROVISIONS OF THE UNIFORM COMMERCIAL CODE OR ANY APPLICABLE COLLECTION AGREEMENT Making a Deposit You can put cash and checks into your account in different ways When you re ready to deposit money at your financial institution, you need to fill out a form called a deposit ticket You ll find your deposit tickets in your checkbook, behind the checks They have printing on both sides Just like with checks and the check register, there are areas you need to complete Use a pen to fill out the form It is very important that you write neatly Here are the spots to fill in on your deposit ticket FRONT DEPOSIT TICKET JOHN C DOE Today s Date DEPOSITS MAY NOT BE AVAILABLE FOR IMMEDIATE WITHDRAWAL SIGN HERE FOR CASH RECEIVED (IF REQUIRED) Farmers & Merchants Union Bank Columbus, Wisconsin (920) 623-4000 wwwfmubcom 1 8 00-6789 0000 CASH Gomez Pratt 9 2 3 5 6 7 $ SUBTOTAL *LESS CASH RECEIVED 1 0 0 0 0 2 5 0 0 8 5 0 0 2 1 0 0 0 2 1 0 0 0 + ı:075902670 1234 567ıı BACK 4 The deposit ticket style for each financial institution may vary slightly 6

Making a Deposit (Continued) 1 2 3 4 Date: The date you are depositing money Cash: The amount of cash you are depositing Add it all together, and write it down here Check Entry Area: This is where you write down each check you re depositing Put each check amount on its own line Additional Check Entry Area: The back also has space for checks, if you run out of room on the front 5 Total From Other Side: If you have more than three checks and wrote them down on the back side, add them up and put the total here If you are depositing three checks, this is the place you write down the third one 6 7 8 Sub Total: Add items 2, 3 and 5 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 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 are receiving cash back, subtract that amount The result is your net deposit Write down that amount here 7

Endorsing a Check If you ve got a job, chances are you get paid with a check To deposit that check, you need to endorse it That means you sign your name in ink on the back of the check Sign your name the same way it s 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 a check BLANK ENDORSEMENT SPECIAL ENDORSEMENT RESTRICTIVE ENDORSEMENT Sign your name the same way it s written on the front of the check Only sign it when you re ready to cash it or deposit the money into your account Once the check is signed on the back (endorsed), someone else could get your money if you lost the check Do this when you want 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 When you want your check to be very safe, such as when you send it to your financial institution in the mail, use this kind of endorsement Write for deposit only and sign underneath Now the check can only be deposited into your account, not cashed ENDORSE HERE ENDORSE HERE John C Doe DO NOT WRITE, STAMP OR SIGN BELOW THIS LINE RESERVED FOR FINANCIAL INSTITUTION USE Pay to the order of Jane Schmidt John C Doe DO NOT WRITE, STAMP OR SIGN BELOW THIS LINE RESERVED FOR FINANCIAL INSTITUTION USE ENDORSE HERE For deposit only John C Doe DO NOT WRITE, STAMP OR SIGN BELOW THIS LINE RESERVED FOR FINANCIAL INSTITUTION USE 8

Reviewing Your Monthly Statement Every month, you ll get a statement from your financial institution This statement tells you: Every check that you wrote (the ones that have been processed physically or electronically see examples on next page) Money you took out of the ATM, transferred by telephone, or any other withdrawals All of your debit card transactions All of your deposits Your ending balance (how much you have in your account on the date the statement was printed) The envelope containing your statement may contain images of the checks you ve written These are the checks you ve already written that have been cleared (paid out of your account) by your financial institution Any checks you ve written that have not cleared 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 2 3 4 Special Note: Your bank may include a special note pertaining to your account or any bank related information Account Information: Here is where you will find your account information, like the type of account you have and the account number Account Transaction Details: This is a detailed list of transactions that have cleared your account during this statement cycle Including checks, debit card purchases, ATM withdrawals, deposits, transfers, and EFT (Electronic Funds Transfer) checks Account Balance: This is your balance at the end of your statement cycle, based on cleared transactions You will need this total to reconcile, or balance your checkbook (Keep in mind this number usually does not match your checkbook balance) 5 Account Summary: Here you will find the total number of credits and debits, the average available balance and average balance for the statement cycle 9

Reviewing Your Monthly Statement (Continued) 6 Checks and Deductions: These are all the checks you wrote for the month (EFT checks do not show here) You ll see the date, the check number, and the amount you wrote the check for If you see dots or asterisks between or next to the check numbers, that means either your check is out of sequence, or that the check is outstanding 7 Customer Service Number: Phone number of bank will be printed either on the front or back of the statement Call if you have any questions about your account or your statement Remember, if there is something you don t understand about your account, call the number you see on your statement to get your questions answered by your financial institution s customer service Web Site: wwwfmubcom E-mail: askfmub@fmubcom ACCOUNT: 1234567 DOCUMENTS: 10 PAGE: 1 10/15/2012 John C Doe Example of EFT check-note that the check number comes after the merchants name 1 3 4 5 6 ==================================================================================== Every Debit Card purchase you make between Nov 1 and Feb 29, 2012, you ll automatically be entered for a chance to win a digital camera package, valued at $50000 If you don t have a Debit Card, apply for one today ============================================================================================= 2 DDA ACCOUNT 1234567 ============================================================================================= DESCRIPTION DEBITS CREDITS BALANCE CHECK # 3882 6000 09/15/12 281104 CHECK # 3884 6360 09/18/12 274744 DEPOSIT 5000 09/19/12 279744 CHECK # 3885 20000 09/26/12 259744 CHECK # 3886 25466 09/26/12 234278 CHECK # 3888 171998 10/03/12 62280 CHECK # 3887 6360 10/03/12 55920 DEPOSIT 94550 10/05/12 150470 PICK N SAVE 3889 2210 10/05/12 148260 BALANCE THIS STATEMENT 148260 ============================================================================================ TOTAL CREDITS (2) 99550 AVG AVAILABLE BALANCE 150369 TOTAL DEBITS (7) 239784 AVERAGE BALANCE 153472 ============================================================================================ YOUR CHECKS IN SEQUENCE ============================================================================================ CHECK#AMOUNT CHECK#AMOUNT CHECK#AMOUNT 9/15 3882 6000 9/26 3885 20000 10/03 3887 6360 9/18 3884* 6360 9/26 3886 25466 10/03 3888 171998 (*) INDICATES A GAP IN CHECK NUMBER SEQUENCE 7 Phone numbers of bank locations are on the back of statement The style of statement for each financial institution may vary slightly 10

Balancing 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 will need to look at your check register and your statement together and compare them Here s how to start 1 Open the envelope with your statement If your financial institution sends your check images to you, they will also be in the envelope 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 (or Code* ) Do this for every check on your statement 4 Complete 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 the financial institution 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, financial institution services, or automatic deductions (ie a car loan) 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 financial institution pays interest on your checking account, add the interest amount to your check register 8 Now your checkbook should be up-to date 11

Balancing Your Account (Continued) 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 (usually on the back) This is a form to help you reconcile your account Just like all the other forms we ve talked about, there are spots for you to fill in Usually, the reconciliation form guides you to: 1 2 List checks and other withdrawals that you have written in your check register, but are not listed on the statement Write in any deposits that you have written in your check register, but are not listed on the statement This Form IS Provided To Help You Balance Your Statement Farmers & Merchants Union Bank will never ask for confidential information through regular e-mail Further, Farmers & Merchants Union Bank will never ask you for your password or PIN through e-mail, via the telephone or in person If someone identifies himself or herself as a Bank employee and asks you for your password or PIN, take caution They do not represent the Bank Do not reveal your information to them 1 Outstanding Transactions Not Charged to Account NO $ Before You Start Please be sure that you have entered in your register all automatic transactions shown on the front of this statement You should have added if any occurred: 1 Loan advances 2 Credit memos 3 Other automatic deposits You should have subtracted if any occurred: 1 Automatic loan payments 2 Automatic savings transfers 3 Service charges 4 Debit memos 5 Other automatic deductions and payments Add 3 2 Balance Shown On This Statement Deposits Not Shown On This Statement (if any) $ $ $ $ 5 Subtract Total $ 4 Withdrawals Outstanding $ TOTAL $ 6 Balance $ Should agree with your register balance after deducting service 12

Balancing Your Account (Continued) 3 Write down the ending balance printed on the front of your statement 4 5 6 Enter the total withdrawals Add your statement balance with the deposits listed, then subtract the outstanding withdrawals The balance of your checkbook should match the ending balance If you have trouble reconciling your account, call the customer service number listed on your statement 13

Checking Do s and Don ts THINGS NOT TO DO THINGS TO DO There are a couple things you need to know about using checks Here is the first one, and it s a big one: Don t write checks for more money than you have in your account You might have heard it called bouncing a check, or writing a bad check The financial institution calls it non-sufficient funds (NSF) You could be charged an overdraft fee by your financial institution The business to which you wrote the bad check could charge you another fee The place to which you wrote the bad check could decide not to take your checks in the future Your name could go on a risk check or risk credit list, and other businesses won t take your checks Your checking account could be closed by your financial institution and you wouldn t be allowed to write any checks at all Your financial institution may report this information to other financial institutions, and they may refuse to open a checking account for you for up to seven years after your account was closed You could get letters and phone calls from the people you owe the money to BUTIt s easy to keep these things from happening Just keep track of how much money you have in your checking account, and don t write checks for more than that amount Don t sign blank checks They can be stolen and used by someone else Don t erase mistakes on a check Either write VOID across the entire check and next to its number in the check register and tear up the check, or fix the check by drawing one line through the mistake and initialing next to it Don t use other people s checks or let them use yours Don t use a pencil, only use a pen Keep all your checks in a safe place Checks are money and can be stolen and used by other people, just like cash If you checks are ever lost or stolen, call your financial institution immediately! Keep track of the money you take out of the ATM and any debit card withdrawals made they add up quickly Put the right date on your checks Sign your name like it s printed on the check Write the check amount as far to the left as you can 14

Glossary Automated Teller Machine (ATM): Also known as the money machine or cash machine Bad Check: A check that is written when there is not enough money in the account Also known as a bounced check Balance: The amount of money you have in your account Cash: Money in the form of bills or coins Check: A document used for payment Check Register: A form to keep track of your checking account transactions Checking Account: A payment method to manage your money efficiently Cleared Check: A check that has gone through the financial institution s processing center, has been deducted from your account, and is listed on your monthly statement Debit Card: A card that can be used at an ATM or merchant Unlike a credit card, the funds are deducted from your checking account Deposit: The money you put into your account Or (verb) to put money into your account Deposit Ticket: The form you use to put money into your account EFT/ Electronic Check: When you write a check to a merchant and the merchant hands the check back to you The check is converted to an automatic deduction to your checking account Endorse: To sign your name on the back of a check in order to cash it or deposit it FDIC: Federal Deposit Insurance Corp-an independent US agency which provides deposit insurance guaranteeing the safety of a depositor s accounts up to $250,000 Financial Institution: A business that deals with money For example, a bank or credit union Less Cash Received: The amount of cash you get back when you make a deposit Memo: The area on a check that notes what the check was written to pay for Non-sufficient Funds: See Bad Checks Non-sufficient Funds Fee: The fee that is charged by a financial institution or business when a check does not clear Outstanding Check: A check that is still going through financial institution processing Overdraft: When your account goes below zero there is not enough money to cover the withdrawal Reconcile: A process to make sure your checkbook balance matches your financial institution s balance for your account Reconciliation: When you have verified that your checkbook balance is the same as your financial institution s balance for your account Reconciliation Form: A form that helps you reconcile your account See Reconcile Recording a Transaction: The act of writing down a transaction in your check register Statement: The documentation you get every month from your financial institution that lists all of the activities in your account for the month Transaction: When money goes into, or out of, your account Can include deposits, withdrawals, payments, fees, ATM transactions or transfers Void: This means that a check is not good or not usable You would write VOID across the check that has a mistake written on it, tear it up, and throw it away Withdrawal: When you take money out of your account This can be by check, ATM, automatic payment or other methods 15

Practice Exercises Writing Checks 1 You need to pay a $7253 cell phone bill to US Cellular Complete the check below John C Doe 00-67890000 12345678 501 PAY TO THE ORDER OF $ Farmers & Merchants Union Bank Columbus, Wisconsin (920) 623-4000 wwwfmubcom DOLLARS Security features included Details on back SAMPLE-VOID Memo ı:075902670 1234 567ıı 0501 2 You need to pay for groceries at Pick-N-Save Your total comes to $2267 Fill out the check below to make the payment John C Doe 00-67890000 12345678 502 PAY TO THE ORDER OF $ Farmers & Merchants Union Bank Columbus, Wisconsin (920) 623-4000 wwwfmubcom DOLLARS Security features included Details on back SAMPLE-VOID Memo ı:075902670 1234 567ıı 0501 16

Practice Exercises Balancing Your Account 3 You have $100 in your account Today you write a check to Kohl s for clothes purchased in the amount of $3675 You also stop at an ATM and withdraw $2000 Fill out the starting balance, write the check, then enter the check and ATM transaction in the register What is your final balance? John C Doe 00-67890000 12345678 503 PAY TO THE ORDER OF $ Farmers & Merchants Union Bank Columbus, Wisconsin (920) 623-4000 wwwfmubcom DOLLARS Security features included Details on back SAMPLE-VOID Memo ı:075902670 1234 567ıı 0501 AD-Automatic Deposit AP-Automatic Payment ATM-Teller Machine DC-Debit Card T-Tax Deductible TT-Telephone Transfer NUMBER OR CODE TRANSACTION DESCRIPTION PAYMENT AMOUNT FEE $ DEPOSIT AMOUNT $ B A L A N C E 17

DELUXE H D-101 CHECKS AND OTHER ITEMS ARE RECEIVED FOR DEPOSIT SUBJECT TO THE PROVISIONS OF THE UNIFORM COMMERCIAL CODE OR ANY APPLICABLE COLLECTION AGREEMENT Practice Exercises Depositing Money 4 You are depositing a check from Mark Bennett for $3500 You do not want cash back How would you complete this sample deposit ticket properly? Next, add it to your checkbook register DEPOSIT TICKET JOHN C DOE DEPOSITS MAY NOT BE AVAILABLE FOR IMMEDIATE WITHDRAWAL SIGN HERE FOR CASH RECEIVED (IF REQUIRED) 00-6789 0000 CASH SUBTOTAL *LESS CASH RECEIVED Farmers & Merchants Union Bank Columbus, Wisconsin (920) 623-4000 wwwfmubcom $ + ı:075902670 1234 567ıı AD-Automatic Deposit AP-Automatic Payment ATM-Teller Machine DC-Debit Card NUMBER OR CODE TRANSACTION DESCRIPTION PAYMENT AMOUNT T-Tax Deductible TT-Telephone Transfer FEE $ DEPOSIT AMOUNT $ 43 25 18

CURRENCY COUNT FOR FINANCIAL INSTITUTION USE ONLY X 100 X 50 X 20 X 10 X 5 X 2 X 1 T O T A L $ CHECKS LIST SINGLY TOTAL MUST BE ENTERED ON FRONT SIDE DOLLARS CENTS DELUXE H D-101 CHECKS AND OTHER ITEMS ARE RECEIVED FOR DEPOSIT SUBJECT TO THE PROVISIONS OF THE UNIFORM COMMERCIAL CODE OR ANY APPLICABLE COLLECTION AGREEMENT Practice Exercises Depositing Money 5 Today, you deposit $165 in cash and four checks: Tom Johnson $13212; John Keller $1400, Mary Blake $2500; a state tax refund check $30000 You would like $5000 cash back How would you complete this sample deposit ticket? DEPOSIT TICKET JOHN C DOE DEPOSITS MAY NOT BE AVAILABLE FOR IMMEDIATE WITHDRAWAL SIGN HERE FOR CASH RECEIVED (IF REQUIRED) 00-6789 0000 CASH SUBTOTAL *LESS CASH RECEIVED Farmers & Merchants Union Bank Columbus, Wisconsin (920) 623-4000 wwwfmubcom $ + ı:075902670 1234 567ıı AD-Automatic Deposit AP-Automatic Payment ATM-Teller Machine DC-Debit Card NUMBER OR CODE TRANSACTION DESCRIPTION PAYMENT AMOUNT T-Tax Deductible TT-Telephone Transfer FEE $ DEPOSIT AMOUNT $ 78 25 19

Practice Exercises Endorsing a Check 6 You have a check you want to deposit by mail How do you endorse the sample properly? ENDORSE HERE DO NOT WRITE, STAMP OR SIGN BELOW THIS LINE RESERVED FOR FINANCIAL INSTITUTION USE 7 You want to give Pat Lind this check to pay for the groceries she bought you How do you endorse the sample properly? ENDORSE HERE DO NOT WRITE, STAMP OR SIGN BELOW THIS LINE RESERVED FOR FINANCIAL INSTITUTION USE Correcting a Mistake 8 You accidentally got distracted and wrote the incorrect date on your check Today is June 17th, not May Indicate on the check below, the proper way to correct the mistake John C Doe 00-67890000 12345678 5/17/12 502 PAY TO THE ORDER OF $ Six and 37 / 100 Memo Subway 637 Farmers & Merchants Union Bank Columbus, Wisconsin (920) 623-4000 wwwfmubcom rental car ı:075902670 1234 567ıı 0501 20 DOLLARS Security features included Details on back SAMPLE-VOID John C Doe

Practice Exercises Balancing Your Account 9 From the check register and monthly financial institution statement below, reconcile your account using the form on the following page AD-Automatic Deposit AP-Automatic Payment ATM-Teller Machine DC-Debit Card T-Tax Deductible TT-Telephone Transfer NUMBER OR CODE TRANSACTION DESCRIPTION 3881 3882 3883 3884 3885 3886 3887 3888 3889 3890 9/9 9/15 9/17 9/18 9/19 9/26 9/26 10/3 10/3 10/5 10/6 10/11 Betty Randall Adams-Columbia Electric BP Pete s Garage Deposit Kohls St Maria Apartments Piggly Wiggly Taylor Car Sales Deposit Monte s Ryan Patrick PAYMENT AMOUNT 35 00 60 00 33 19 63 60 D 200 00 254 66 63 60 1719 98 54 36 D 36 00 FEE $ DEPOSIT AMOUNT $ BAL 50 00 945 50 2871 04 2811 04 2777 85 2714 25 2764 25 2564 25 2309 59 2245 99 526 01 1471 51 1417 15 1381 15 Web Site: wwwfmubcom E-mail: askfmub@fmubcom ACCOUNT: 1234567 DOCUMENTS: 10 PAGE: 1 10/15/2012 John C Doe ==================================================================================== Every Debit Card purchase you make between Nov 1 and Feb 29, 2012, you ll automatically be entered for a chance to win a digital camera package, valued at $50000 If you don t have a Debit Card, apply for one today ============================================================================================= DDA ACCOUNT 1234567 ============================================================================================= DESCRIPTION DEBITS CREDITS BALANCE CHECK # 3882 6000 09/15/12 281104 CHECK # 3884 6360 09/18/12 274744 DEPOSIT 5000 09/19/12 279744 CHECK # 3885 20000 09/26/12 259744 CHECK # 3886 25466 09/26/12 234278 CHECK # 3888 171998 10/03/12 62280 CHECK # 3887 6360 10/03/12 55920 DEPOSIT 94550 10/05/12 150470 BALANCE THIS STATEMENT 150470 ============================================================================================ TOTAL CREDITS (2) 99550 AVG AVAILABLE BALANCE 150369 TOTAL DEBITS (7) 239784 AVERAGE BALANCE 153472 ============================================================================================ YOUR CHECKS IN SEQUENCE ============================================================================================ CHECK#AMOUNT CHECK#AMOUNT CHECK#AMOUNT 9/15 3882 6000 9/26 3885 20000 10/03 3887 6360 9/18 3884* 6360 9/26 3886 25466 10/03 3888 171998 (*) INDICATES A GAP IN CHECK NUMBER SEQUENCE 21

Practice Exercises Balancing Your Account (Continued) This form is usually found on the back side of your statement This Form IS Provided To Help You Balance Your Statement Farmers & Merchants Union Bank will never ask for confidential information through regular e-mail Further, Farmers & Merchants Union Bank will never ask you for your password or PIN through e-mail, via the telephone or in person If someone identifies himself or herself as a Bank employee and asks you for your password or PIN, take caution They do not represent the Bank Do not reveal your information to them Outstanding Transactions Not Charged to Account NO $ Before You Start Please be sure that you have entered in your register all automatic transactions shown on the front of this statement You should have added if any occurred: 1 Loan advances 2 Credit memos 3 Other automatic deposits You should have subtracted if any occurred: 1 Automatic loan payments 2 Automatic savings transfers 3 Service charges 4 Debit memos 5 Other automatic deductions and payments Add Subtract Balance Shown On This Statement Deposits Not Shown On This Statement (if any) Total Withdrawals Outstanding $ $ $ $ $ $ TOTAL $ Balance $ Should agree with your register balance after deducting service charge ( if any ) shown on this statement 22

Answers To Practice Exercises 1 You need to pay a $7253 cell phone bill to US Cellular Complete the check below John C Doe 00-67890000 12345678 Today s Date 501 PAY TO THE Memo US Cellular Seventy two and 53 / 100 Farmers & Merchants Union Bank Cell phone bill ı:075902670 1234 567ıı 0501 $ John C Doe 7253 DOLLARS Security features included Details on back SAMPLE-VOID 2 You need to pay for groceries at Pick-N-Save Your total comes to $2267 Fill out the check below to make the payment John C Doe 00-67890000 12345678 Today s Date 502 PAY TO THE Memo Pick-N-Save Twenty two and 67 / 100 Farmers & Merchants Union Bank Groceries ı:075902670 1234 567ıı 0501 $ John C Doe 2267 DOLLARS Security features included Details on back SAMPLE-VOID 23

Answers To Practice Exercises 3 You have $100 in your account Today you write a check to Kohl s for clothes purchased in the amount of $3675 You also stop at an ATM and withdraw $2000 Fill out the starting balance, write the check, then enter the check and ATM transaction in the register What is your final balance? PAY TO THE Memo John C Doe Kohl s Thirty six and 75 / 100 Farmers & Merchants Union Bank Columbus, Wisconsin (920) 623-4000 wwwfmubcom Clothes ı:075902670 1234 567ıı 0501 00-67890000 12345678 Today s Date $ 3675 John C Doe DOLLARS 503 Security features included Details on back SAMPLE-VOID AD-Automatic Deposit AP-Automatic Payment ATM-Teller Machine DC-Debit Card NUMBER OR CODE TRANSACTION DESCRIPTION PAYMENT AMOUNT T-Tax Deductible TT-Telephone Transfer FEE DEPOSIT AMOUNT $ 100 00 B A L A N C E 503 Date Kohl s $ 36 75 63 25 ATM Date Withdrawal 20 00 43 25 24

DELUXE H D-101 CHECKS AND OTHER ITEMS ARE RECEIVED FOR DEPOSIT SUBJECT TO THE PROVISIONS OF THE UNIFORM COMMERCIAL CODE OR ANY APPLICABLE COLLECTION AGREEMENT Answers To Practice Exercises 4 You are depositing a check from Mark Bennett for $3500 You do not want cash back How would you complete this sample deposit ticket properly? Next, add it to your checkbook register DEPOSIT TICKET JOHN C DOE Today s Date DEPOSITS MAY NOT BE AVAILABLE FOR IMMEDIATE WITHDRAWAL SIGN HERE FOR CASH RECEIVED (IF REQUIRED) Farmers & Merchants Union Bank Columbus, Wisconsin (920) 623-4000 wwwfmubcom CASH 00-6789 0000 Bennett 35 00 SUBTOTAL *LESS CASH RECEIVED 35 00 $ + ı:075902670 1234 567ıı AD-Automatic Deposit AP-Automatic Payment ATM-Teller Machine DC-Debit Card NUMBER OR CODE TRANSACTION DESCRIPTION PAYMENT AMOUNT T-Tax Deductible TT-Telephone Transfer FEE DEPOSIT AMOUNT $ 43 25 date Deposit D $ 35 00 78 25 25

CURRENCY COUNT FOR FINANCIAL INSTITUTION USE ONLY X 100 X 50 X 20 X 10 X 5 X 2 X 1 T O T A L $ CHECKS LIST SINGLY DOLLARS CENTS DELUXE H D-101 CHECKS AND OTHER ITEMS ARE RECEIVED FOR DEPOSIT SUBJECT TO THE PROVISIONS OF THE UNIFORM COMMERCIAL CODE OR ANY APPLICABLE COLLECTION AGREEMENT Answers To Practice Exercises 5 Today, you deposit $165 in cash and four checks: Tom Johnson $13212; John Keller $1400, Mary Blake $2500; a state tax refund check $30000 You would like $5000 cash back How would you complete this sample deposit ticket? DEPOSIT TICKET JOHN C DOE Today s Date John C Doe DEPOSITS MAY NOT BE AVAILABLE FOR IMMEDIATE WITHDRAWAL SIGN HERE FOR CASH RECEIVED (IF REQUIRED) Farmers & Merchants Union Bank Columbus, Wisconsin (920) 623-4000 wwwfmubcom CASH 00-6789 0000 Johnson SUBTOTAL *LESS CASH RECEIVED 1 65 132 1 2 14 00 325 00 472 77 50 00 422 77 $ + ı:075902670 1234 567ıı ON FRONT SIDE 325 00 Blake State Tax TOTAL MUST BE ENTERED 25 00 300 00 Keller AD-Automatic Deposit AP-Automatic Payment ATM-Teller Machine DC-Debit Card NUMBER OR CODE TRANSACTION DESCRIPTION PAYMENT AMOUNT T-Tax Deductible TT-Telephone Transfer FEE DEPOSIT AMOUNT $ Date Deposit $ 422 77 D 78 25 501 02 26

Answers To Practice Exercises 6 You have a check you want to deposit by mail How do you endorse the sample properly? ENDORSE HERE For deposit only John C Doe DO NOT WRITE, STAMP OR SIGN BELOW THIS LINE RESERVED FOR FINANCIAL INSTITUTION USE 7 You want to give Pat Lind this check to pay for the groceries she bought you How do you endorse the sample properly? ENDORSE HERE Pay to the order of Pat Lind John C Doe DO NOT WRITE, STAMP OR SIGN BELOW THIS LINE RESERVED FOR FINANCIAL INSTITUTION USE 8 You accidentally got distracted and wrote the incorrect date on your check Today is June 17th, not May Indicate on the check below, the proper way to correct the mistake John C Doe 00-67890000 12345678 Your initials 6 5/17/12 502 PAY TO THE ORDER OF $ Six and 37 / 100 Memo Food Subway 637 Farmers & Merchants Union Bank Columbus, Wisconsin (920) 623-4000 wwwfmubcom ı:075902670 1234 567ıı 0501 DOLLARS Security features included Details on back SAMPLE-VOID John C Doe 27

Answers To Practice Exercises 9 From the check register and monthly financial institution statement below, reconcile your account using the form on the following page AD-Automatic Deposit AP-Automatic Payment ATM-Teller Machine DC-Debit Card T-Tax Deductible TT-Telephone Transfer NUMBER OR CODE TRANSACTION DESCRIPTION 3881 3882 3883 3884 3885 3886 3887 3888 3889 3890 9/9 9/15 9/17 9/18 9/19 9/26 9/26 10/3 10/3 10/5 10/6 10/11 Betty Randall Adams-Columbia Electric BP Pete s Garage Deposit Kohls St Maria Apartments Piggly Wiggly Taylor Car Sales Deposit Monte s Ryan Patrick PAYMENT AMOUNT 35 00 60 00 33 19 63 60 200 00 254 66 63 60 1719 98 54 36 36 00 FEE $ D D DEPOSIT AMOUNT $ BAL 50 00 945 50 2871 04 2811 04 2777 85 2714 25 2764 25 2564 25 2309 59 2245 99 526 01 1471 51 1417 15 1381 15 3883 33 19 3889 54 36 3890 36 00 150470 000 150470 12355 123 55 138115 28

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