HUMS 202 Study Guide - Quiz Guide: Money Market Account, Social Security Number, Debit Card
26 Apr 2018
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● Benefits of Checking Accounts:
○ Allows you to write checks or use a debit card to pay bills and make purchases
○ Benefits:
■ Convenience: provide you with quick and easy access to your money;
paychecks, income tax refunds, and public assistance benefits can be
directly deposited into your account
■ Cost: usually less expensive than other services (i.e. check-cashing
services/buying money orders)
■ Better for money management: regularly record or monitor your
transactions-
● Depositing withdrawing money
● Writing a check or using your debit card to pay bills and make
purchases
● Having funds directly deposited into your account
■ Safety: safer to use checks or debit cards than to use large amounts of
cash
● Limit financial loss if you report lost or stolen checks/debit cards to
your bank ASAP
● Types of Checking Accounts:
○ Free/Low-cost Checking: the charge is often no more than $5 per month, fee
may be waived if you use direct deposit or use your ATM or debit card a
minimum number of times a month
○ Electronic Checking: use direct deposit & ATM/Debit card; might be right if you
handle most of your banking transactions online or via an ATM, rather than going
to a bank branch; VERIFY FEES
○ Regular Checking: usually a minimum baslance required to waive the monthly
service fee; usually offers unlimited check-writing privileges
○ Interest-Bearing Checking: usually have to maintain a high minimum balance (at
least $1000) in order to earn interest and avoid fees
■ Negotiable Order of Withdrawal (NOW) account
■ Money Market Deposit Account (MMDA)
● Opening a Checking Account:
○ Need opening deposit and one or more forms of ID:
■ Social Security Number (SSN) if you are a US citizen
■ Individual taxpayer identification number (ITIN) if you are not a US citizen
■ A state-issued driver’s license or other state ID with a photo
■ Other photo IDs such as the Matricula Consular card, resident alien card
(Green Card), or passport or other out-of-country government ID that
shows the issuing country & ID number
○ Different banks require different things: ask first!
● Check Registers:
○ Parts of a check register:
■ Check number
■ Date
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Allows you to write checks or use a debit card to pay bills and make purchases. Convenience: provide you with quick and easy access to your money; paychecks, income tax refunds, and public assistance benefits can be directly deposited into your account. Cost: usually less expensive than other services (i. e. check-cashing services/buying money orders) Better for money management: regularly record or monitor your transactions- Writing a check or using your debit card to pay bills and make purchases. Having funds directly deposited into your account. Safety: safer to use checks or debit cards than to use large amounts of cash. Limit financial loss if you report lost or stolen checks/debit cards to your bank asap. Free/low-cost checking: the charge is often no more than per month, fee may be waived if you use direct deposit or use your atm or debit card a minimum number of times a month.
