Banking

Math 10 Essentials

Banking Transactions

A bank is an financial institution which deals with cash, domestic and foreign, receives and stores deposits of money, and to loan those monies to third-parties.

What are some of the banks found in Canada?

Deposits

A deposit is an amount of money placed into an account at a bank.

The bank may pay you interest, or a percent of the amount deposited, for keeping your money there.

Transactions

A bank charges fees for transactions, such as depositing, transferring, and withdrawing money.

Fees may also be charged for writing cheques, and paying bills.

Cheques

What is a cheque?– A cheque is a slip of paper that provides written

instructions to a bank to pay an amount to a person or organization named.

How do we write cheques?

Writing a Cheque

Pay to the order of: the person or organization being paid Date: you can post date for the future or use the current date Amount line: write the amount you are paying in words and

then use a line to fill the rest of the line (this prevent someone from tampering with your cheque.

Signature line: Sign the cheque authorizes that you have filled it out and are authorizing the amount to be withdrawn.

Memo: used to note what the amount is for

Chequing Accounts

Banks offer a variety of account types. Most people use chequing accounts for transactions associated with depositing income and paying expenses.

Your cheques will be used to take money from your chequing account.

Banking Types

Banks encourage us to use self-service or automated banking rather than full-service banking at tellers.

Automated Teller Machines (ATMs) are one type of self service banking.

ATMs may also be called ABMs – what do you think ABM stands for?

ATMs

ATMs offer a variety of services once you insert your card and put in your pin number. Some of these services include:– Withdrawing money (Withdrawals)– Depositing money (cheques and cash)– Paying bills– Transferring money between accounts– Checking the balance in your account

Self-Service Banking

Other than ATMs, banks also offer other self-service banking options such as:– Telephone banking – automated service via

telephone allow you to manage your account

– On-line banking – using the internet, you can manage your money, pay bills, check balances all from your home computer.

Electronic Funds Transfer

Another type of automated banking is Electronic funds transfer.

These are direct deposits of income from employers, governments, and from investments made directly to your account (no cheque need be issued)

Electronic Funds Transfers

Automatic withdrawals from your account can be made for payments on their due dates as well.

Many stores and businesses allow you to pay electronically using your bank card or debit card. The funds are electronically transferred from your account to theirs.

Automated Self-Service Banking

List all of the banking transactions: