Page 32 - Book4E

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• Accounts that pay interest: Some checking accounts pay interest on the money you leave in the account. The interest rate is usually very low as the bank knows the money will only be deposited for a short time.
When choosing a place to open your checking account, there are several things you should take into consideration:
• Will any fees be charged and how much will they be? Is there a minimum balance requirement? Do I have to wait after I deposit the money before it is available? Is there a limit to
how many checks I can write?
• How convenient is the location for me? What hours are the institution open? Are there any weekend hours? Will I be able to get to the institution to make my deposits when they are open?
• Does the institution offer any other services I need? Can I get overdraft protection? Can I have an ATM or debit card? Is online or telephone financial service available?
The Check Register
When you pay your bills with checks, your financial institution takes the money out of your account. A check that has been paid is called a cancelled check and serves as proof that you have paid the bill. The insti- tution will notify you that the check has been paid by sending you the paid checks or sending you a monthly statement of your account. Some institutions do both, but you also need to keep a record of the checks you have written.
An important part of maintaining your checking account records is the check register. Every time you receive new checks, you should also receive a check register. It is usually a simple format that allows you to record the date the check was written, who the check was written to, the check number, and the amount of the check. In addition to recording your checks, it is also important to record any ATM withdrawals and debit card purchases you make.
Checking Accounts