 Hello and welcome to the session. In this session we will discuss the concept of checking account and its types, deposit slip and credit cards. Now we are going to see what is a checking account. It is an account opened at our bank by a person for the purpose of making payments from funds on deposit in that account. The account holder can use the money in the account by writing a check, using a debit card, making a withdrawal or transferring funds. In general, a checking account holder can use personal checks in place of cash to pay debts. In easy language we can say that a check is a piece of paper that stands in for cash. Suppose Jane buys a TV from a store. Instead of making cash payment, she writes a check from her checking account bearing amount of money and her signature and gives it to the store owner. This check will be considered as a payment for the TV purchased. As soon as the check is deposited in the bank, the money from Jane's account will be transferred to the store owner's account. Next we are going to study about monthly service charges. Banks often charge a fee or service charge for the use of checking account. There are number of factors on which the banks base their service charge. They can be the minimum balance requirement, which means when a person opens a checking account in a bank, then according to the terms and conditions of the bank, the account holder has to keep a minimum balance in his account. If the balance in his account is lower than the required amount, then the bank charges a monthly fee. The second factor is number of checks drawn. It means whenever a transaction is made through a check, then the bank charges a fee on each transaction. The bank also charges monthly maintenance fee for various services like providing up-to-date information regarding our account, use of ATM, etc. The monthly service charges vary from one financial institution to another. Different account types have different monthly charges. Now we are going to discuss types of checking accounts. There are three types of checking account. One is regular checking account. Second, interest bearing checking account and third is activity account. In regular checking account, we can deposit and withdraw the money and write checks. It usually requires a minimum balance to avoid service charges. There may be a monthly service charge or fee for handling checking account. The fee varies from one financial institution to another. Next we have interest bearing checking account. This is a combination of saving and checking account. The financial institution pays interest on the money, captain account. Also, we can write checks on the account. The financial institutions offer this account with varying interest rates, minimum balance requirement and service charges. Next is activity account. In this account, a fee is charged by the bank for each check written. There may be a monthly service charge for handling the account. Now we are going to discuss about deposit slip. Sometimes when we have to deposit money in our account, we have to fill a form which is called deposit slip. This deposit slip acts as a record of the transaction. A deposit slip states what is being deposited, currency, coin or check and the amount of each item. Let us see a sample deposit slip. In this deposit slip, we fill the date on which we deposit the amount. In the next line, we will write the name of the account holder. In third line, we will write the account number. Now suppose the account holder wants to deposit $100, then he will write $100.00 in cash. Now if he wants to deposit check also, then he will write the check number, say 123 and the amount written on the check. If the check is of $250.35, then he will write $250.35 on the slip, then write the subtotal that is $100 plus $250.35 that is equal to $350.35 on the slip. Now if the account holder wants to receive cash back from the deposit, say $50, then we write $50.00 in less cash column on the slip. Lastly, we write total money deposited in the bank which is given by subtotal minus less cash and will be equal to $350.35 minus $50.00 and it is given by $300.35 and it is written on the deposit slip. Thus we fill the deposit slip and give it to the teller in bank. Next we are going to discuss about credit cards. Credit card is called plastic money. It is used as a payment device which gives access to the account holder's account. These are issued by financial institutions like banks as a system of payment. It is used to purchase all kinds of goods and services. Credit card permits consumers to make purchase or to obtain cash advance. When we buy a commodity using credit card, the card issuer is loaning us the amount of purchase up to our credit limit. Thus it is a pre-approved credit which can be used for the purchase of items now and its payment is made later. The bank censors the credit card statement each month and we have to make the payment of the credit given within a specified period. If the person is unable to pay its credit card bills within the given time period, then the bank levies interest on the credit amount to be paid. Thus in this session we have learnt the concept of checking account and its types, deposit slip and credit cards. This completes our session. Hope you enjoyed this session.