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Basic Bank Services

This first section explains basic bank services. We include the bank account, bank deposits, and cheques. Each of these services contributes to either or both the con­trol or safeguarding of cash.

Bank Account

A bank account is a record set up by a bank for a customer, permitting this customer to deposit money for safeguarding and cheque withdrawals. To control access to a bank account, all persons authorized to use a bank account must sign a signature card, A signature card includes the signatures of each person authorized to sign cheques from the account.

Bank employees use signature cards to verify signatures on cheques. This lowers the risk of loss from forgery for both banks and customers. Many companies have more than one bank account. This is for various reasons including serving local needs and for special transactions such as payroll.

Bank Deposit

Each bank deposit is supported by a deposit slip. A deposit slip lists the items such as currency, coins, and cheques deposited along with each of their dollar amounts. The bank gives the customer a copy of the deposit slip or a deposit receipt as proof of the deposit.

Bank Cheque

To withdraw money from an account, a customer uses a cheque. A cheque is a document signed by the depositor instructing the bank to pay a specified amount of money to a designated recipient. A cheque involves three parties: a maker who signs the cheque, a payee who is the recipient, and a bank on which the cheque is drawn. The bank provides a depositor with cheques that are serially-numbered and imprinted with the name and address of both the depositor and bank.