Checking Accounts

Front

What is a checking account?

Back

A checking account is a type of bank account that allows for numerous withdrawals and deposits, and is typically used for everyday transactions.

Front

What is the purpose of writing a check?

Back

The purpose of writing a check is to authorize a bank to pay a specific amount of money from your checking account to another person or entity.

Front

What information is required on a check?

Back

A check must include the date, payee's name, amount in numbers and words, signature, and sometimes a memo.

Front

Why is it important to write the dollar amount in both numbers and words?

Back

Writing the dollar amount in both numbers and words helps prevent fraud and ensures clarity in the payment amount.

Front

What does the memo line on a check indicate?

Back

The memo line is used to note the purpose of the payment or any additional information relevant to the transaction.

Front

What happens if a check is written without sufficient funds in the account?

Back

If a check is written without sufficient funds, it may bounce, leading to fees and potential legal issues.

Front

What is a payee?

Back

A payee is the person or entity to whom a check is written and who will receive the payment.

Front

What is the significance of the signature on a check?

Back

The signature on a check serves as authorization for the bank to process the payment.

Front

What does it mean to 'bounce' a check?

Back

A 'bounced' check refers to a check that cannot be processed due to insufficient funds in the account.

Front

What is a check number?

Back

A check number is a unique identifier assigned to each check, used for tracking and record-keeping.