Just like any other business, a financial service provider sells products to earn money so that it can run its operations and provide services. To understand how financial service providers operate, know that when you deposit money with them, it gets pooled into a shared fund along with everyone else's.
What are the benefits of banking?
Keeping your money in cash puts it at greater risk for theft or loss. The U.S. government protects money you deposit in the bank. A single fund account is insured for up to $250,000 by the Federal Deposit Insurance Corporation (FDIC), which will typically reimburse your insured deposits the next business day. That means you're able to keep your funds safe without having to worry about them being at risk.
Money in the bank can be accessed from anywhere, whether it's online, through an ATM, or just a call to your bank's customer service department. With a bank account, you can arrange for your employer to directly deposit your paycheck automatically into your account, so it's easier and faster for you to get paid.
Reviewing a bank statement — a record of the balance in your bank account and the amounts that have been paid into it and withdrawn from it — makes it easier to manage your finances and stick to a budget. With bank statements, you'll know exactly where your money is going, whether it is toward a car payment or your night out with friends.
Making More Money
Banking allows you to make money with your money. It may sound too good to be true, but with interest, you can earn simply by depositing funds into an account. The bank pays you a percentage of interest on your balance, which is added directly to your account on a monthly basis.
In order to manage your money wisely, you'll need to know how to read and fill out the relevant paperwork. These brief tutorials will guide you through a few of the most frequently used items.
Credit Card Statement
Making a Deposit
You have to deposit money in your bank account if you want to take it out. This tutorial will show you how to fill out a deposit slip.
Write the date you are making the deposit in this field.
If you are depositing currency (paper bills), write the total amount here.
If you are depositing coins, write the total amount here.
If you are depositing a check, write the check number for the top right corner of the check.
Write the amount of the check here.
Total From Other Side
If you are depositing more checks than can be listed on the front, continue to list them on the back and write the total amount of the checks from the back side here.
Write the total amount you are depositing here.
Less Cash Received
If you would like the bank teller to give you cash back from your deposit, insert that amount in this field.
Write the total amount of your deposit (less cash back) in this field.
Writing a Check
Writing checks correctly is essential to preventing misuse by others.
Your personal information is printed here. Never list your social security number on your printed checks.
Write the date in this field.
Write the name of the check's recipient in this field.
Check Amount in Numbers
Write the amount of the check numerically. Do not leave any space before the check amount where extra digits could be inserted.
Check Amount in Words
Starting at the far left side of this field, write the check amount in words. follow the dollar amount with the word "and" before writing the amount of cents over 100 in the form of a fraction. Draw a line from there to the end of the field.
Use this space to note the purpose of the check. If you are paying a bill, you might wish to put your account number here.
Sign your check the way you signed you name when you opened your bank account.
These numbers are used to identify the bank, your account number and the check number. They are printed in special magnetic ink that machines can read.
Endorsing a Check
Signing the back of a check is called "endorsing" the check. There are three ways to endorse a check.
Anyone can cash the check.
More secure than blank endorsement
Special (or Full) Endorsement
Transfer check to another party.
Use a transaction register to keep track of payments (by check or debit card) or deposits you make in your account.
Name or Code
Write the check number or code here.
Write the date of the transaction here.
Write a short description of the transaction.
Payment, Fee Withdrawal (-)
Write the amount of the payment or withdrawal here.
Deposit Credit (+)
Write the amount of the deposit here.
Record your starting account balance here. When the page is full, carry the bottom balance oer to the starting balance on the next page.
Recording a Check
Record the check number, date, to whom the check was written, the amount of the check and the reason the cehck was written. Subtract the amount of the check from your balance and write in the new balance.
Recording a Deposit
Record the code, date, description and the amount of the deposit. Add the amount of the deposit to your balance and write in the new balance.
Reading a Bank Statement
To keep track of where your money goes and how much you have, it's important to know how to read a bank statement. This explains the information it contains.
This statement covers all transactions between these two dates.
This is the number that uniquely identifies your account.
This area displays your previous balance, total deposits, total withdrawals and your new balance.
Checks and Other Debits
This section lists all transactions in which money was withdrawn from your account.
Each withdrawal is listed with the location, date and the amount of the withdrawal.
Deposit and Other Credits
This section lists all transactions in which money has been deposited in your account.
ATM Locations Used
Any ATM used during the statement period is listed here.
Reading a Credit Card Statement
Learning how to read your credit card statement will help you to effectively manage your credit usage.
This is the number that uniquely identifies your account.
This is the name that appears on your credit card.
All transactions occurring between the last statement date and this date appear on this statement.
Payment Due Date
The credit card compnay must receive your payment on or before this date.
This is the total amount you can charge on this credit card.
This is the amount you can charge minus the amount you currently have on the card.
This is the current balance you owe on the card. You can pay the full amount and pay no interest. You can also pay a lesser amount and pay interest.
Minimum Payment Due
This is the minimum amount you can pay on this card this month.
This area lists all the transactions you've made during the statement period. It includes perchases, returns, payments and interest charges.
This section shows how the credit card company calculated your current balance.
This section shows your current balance, if there is any remaining balance from past statements, if you've spent past your credit limit and the minimum amount you must pay.
Finance Charge Summary
These numbers show how much interest you will pay if you choose to pay an amount less than your total balance.