- What is a checking account?
- How to fill out a check
- How to fill out a deposit slip
- How do you maintain your check register?
- How do you balance a checkbook?
- Tips for using a checking account
What is a checking account?
A checking account is the main account that you will use to access money that you need for day to day expenses. While it's called a checking account, there are many ways to access money in this account - a check is just one of them. You can also withdraw money from an ATM machine. You can draw on this account using a CheckCard or you can write a check. In the old days - before ATM machines and check cards were invented - checks were the primary way in which people accessed money in their checking account.
How to fill out a check
- Date line: Record the date that you write the check.
- Payee line: Record the name of the person or business to whom the check is written.
- Amount field: Starting at the far left of the box, write the amount of the check in figures. Placing the figures at the far left will prevent anyone from adding a digit in front of the amount you've indicated.
- Dollars line: Starting at the far left, write the dollar amount of the check in words and the cents as a fraction of 100. Draw a wavy line in the remaining space.
- Signature line: Sign your name as it is printed on your checks. Do not sign a check until it is ready to be used. When you sign a check, you become responsible for paying the amount indicated on the check.
- Memo line: Record what the payment is for.
Note: Don't date a check ahead of the day you wrote it. This is called "post-dating". Even though the date is a future date, the individual or company that you give it to can go ahead and deposit it. If you don't have enough funds in your account, it will result in an overdraft and you will be charged fees.
How to fill out a deposit slip
If you want cash back, you need to sign the deposit slip.
If you are depositing checks, you will need to endorse the back of the check.
How do you maintain your check register?
In the back of your checkbook you will find a check register. You should start with your initial deposit. This is your starting balance. You should record all future withdrawals from and deposits to your account. As you write checks, make other withdrawals, and as you make additional deposits, you should record these transactions and calculate your new balance each time. This will tell you how much you have in your account.
- Number: The number in the upper right corner of the check.
- Date: The date you write the check, use the ATM, or make a Visa CheckCard purchase.
- Description of transaction: The person or business to whom the check is written.
- Payment/Debit: The amount of the check.
- When your processed checks are returned with your monthly statement, record a checkmark here. This means your check has cleared the bank, been paid , and subtracted by the financial institution from your account. It's call a "cancelled check." In some cases, checks are not returned with your monthly statement. Checks are listed on the front of the statement.
- Fee: If your financial institution charges a fee per check, or ATM usage, enter that here.
- Deposit/Credit: When you deposit money in your account, enter that amount.
- Balance: Subtract your check amount from or add your deposit to your previous balance. The result is your current balance.
How do you balance a checkbook?
Once a month you will receive a monthly bank statement. You can also obtain a bank statement from a U.S. Bank ATM machine or from Internet Banking. And you can find out what items have posted to your account by calling 800-USBANKS. At least once a month you should reconcile your register to your U.S. Bank statement.
So what does reconciling your statement mean? It means checking to make sure that the balance you think you have in your account is the same as the balance U.S. Bank is reporting. However, you may have written checks or initiated other transactions that have not posted to your account. The steps to reconciling your account are:
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1. Record the balance in your checkbook | $_____________ |
| 2. Subtract any bank charges | $_____________ |
| 3. This is your register balance | $_____________ |
| 4. Start with the ending balance on your statement | $_____________ |
| 5. Add recent deposits not on the statement | $_____________ |
| 6. Subtract all withdrawals that have not posted on the statement, including all checks that have not posted | $_____________ |
| 7. This is your bank balance. It should match your register balance. | $_____________ |
Tips for using a checking account
Do
- Record every check
- Record every ATM withdrawal
- Record every CheckCard withdrawal
- Record every deposit
- Balance your checkbook register every time you make a deposit or write a check
Don't
- Don't write a check for an amount greater than your balance. This results in a "bounced" check. The check is returned stamped "insufficient funds". U.S. Bank will charge your account for every returned check. And the vendor to whom you wrote the check will also charge you a fee.
- Don't date a check ahead of the day you wrote it. This is called "post-dating". Even though the date is a future date, the individual or company that you give it to can go ahead and deposit it. If you don't have enough funds in your account, it will result in an overdraft and you will be charged fees.
- Don't endorse a check until you are ready to deposit it. Endorsing a check means that you sign your name on the back of a check that is made payable to you. Once you have endorsed the check, you can deposit it in your account or cash it.
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