11 SENIOR HIGH SCHOOL

FABM 2
Quarter 3 – Module 7
Types of Bank Accounts Normally
Maintained by a Business & Preparing
Bank Deposits and Withdrawal Slips

NegOr_Q3_FABM211_Module7_V2

NegOr_Q3_FABM211_Module7_V2
FABM 2 – Grade 11
Alternative Delivery Mode
Quarter 3 – Module 7: Types of Bank Accounts Normally Maintained by a
Business & Preparing Bank Deposits and Withdrawal Slips
Second Edition, 2021

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Published by the Department of Education

Secretary: Leonor Magtolis Briones
Undersecretary: Diosdado M. San Antonio

Development Team of the Module

Writer: Mark Anthony T. Lumagas
Editor: Maria Soledad M. Dayupay
Reviewer: Salvador G. Aguilar Jr
Layout Artist: Bb. Boy Jonnel C. Diaz
Management Team: Senen Priscillo P. Paulin, CESO V Elisa L. Baguio, EdD
Joelyza M. Arcilla EdD, CESE Rosela R. Abiera
Marcelo K. Palispis, JD, EdD Maricel S. Rasid
Nilita L. Ragay, EdD Elmar L. Cabrera

Printed in the Philippines by ________________________

Department of Education –Region VII Schools Division of Negros Oriental

Office Address: Kagawasan, Ave., Daro, Dumaguete City, Negros Oriental

Tele #: (035) 225 2376 / 541 1117
E-mail Address: [Link]@[Link]

NegOr_Q3_FABM211_Module7_V2
Introductory Message

This Self-Learning Module (SLM) is prepared so that you, our dear

learners, can continue your studies and learn while at home. Activities,
questions, directions, exercises, and discussions are carefully stated for you
to understand each lesson.

Each SLM is composed of different parts. Each part shall guide you
step-by-step as you discover and understand the lesson prepared for you.

Pre-tests are provided to measure your prior knowledge on lessons in

each SLM. This will tell you if you need to proceed on completing this module
or if you need to ask your facilitator or your teacher’s assistance for better
understanding of the lesson. At the end of each module, you need to answer
the post-test to self-check your learning. Answer keys are provided for each
activity and test. We trust that you will be honest in using these.

In addition to the material in the main text, Notes to the Teacher are
also provided to our facilitators and parents for strategies and reminders on
how they can best help you on your home-based learning.

Please use this module with care. Do not put unnecessary marks on
any part of this SLM. Use a separate sheet of paper in answering the exercises
and tests. And read the instructions carefully before performing each task.

If you have any questions in using this SLM or any difficulty in

answering the tasks in this module, do not hesitate to consult your teacher
or facilitator.

Thank you.

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 I

This module was designed to provide you with fun and meaningful
opportunities for guided and independent learning at our own pace and time. You will be
enabled to process the contents of the learning resource while being an active learner.

This lesson will give you an overview of the different types of bank accounts normally
maintained by a business and prepare bank deposit and withdrawal slips .

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 I

Pre-assessment
Directions: Identify what is asked in each item. Write the letter of the correct answer on any
sheet of paper, then verify your answer through the answer key at the end of the module.

1. Which of the following statements about check-cashing companies is FALSE?

A. They offer bad deals where you will owe a lot more than you borrowed.
B. They can take a percentage of your check on top of fees.
C. They charge low fees.
D. They make it easy to fall into a loan cycle that is hard to get out of.
2. Which type of bank account typically offers the least (if any) interest?
A. Checking account C. Savings account
B. Money market account D. Certificate of deposit

3. Which type of bank account is best for everyday transactions?

A. Checking account C. Savings account
B. Money market account D. Certificate of deposit
4. Savings account that compounds interest daily will earn a higher return than a savings
account that pays simple interest daily.
A. True B. False
5. What should you do before you withdraw money from the ATM?
A. Ask someone nearby for help using the ATM.
B. Inspect the ATM to make sure it wasn’t tampered with.
C. Find a hidden ATM so no one will see you withdraw money.
D. Share your PIN with trusted friends so you don’t forget it.
6. Which of the following statements about a savings account is FALSE?
A. Savings accounts pay interest on the money you deposit.
B. Savings accounts may require you to maintain a minimum balance to avoid paying
a fee.
C. Savings accounts allow an unlimited amount of withdrawals each month.
D. Savings accounts are best used to store money for longer-term goals.
7. Which of the following statements is TRUE?
A. If there is a mistake on one of your bank accounts, there is nothing you can do about
it.
B. If there is a mistake in your bank account, you should contact your financial
institution immediately.
C. If there is a mistake on one of your bank accounts, you should wait 30 days as these
issues tend to resolve themselves.
D. None of the above.

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8. If there is a mistake with one of your bank accounts, who should you contact to resolve the
issue?
A. The NBI
B. The local police station
C. Your financial institution
D. No one, you can’t resolve the issue
9. Which of the following is NOT a common feature of a financial institution?
A. Direct deposit
B. Access to investment advice
C. Paper checks
D. Checking and savings account
10. Which of the following is another NOT common feature of a financial institution?
A. Access to ATMs C. Investment trading
B. Direct deposit D. Debit cards

’s In

Task 1
Copy the form on your activity notebook then ask your parents or relatives, who have a bank
account, to fill out the form shown below.

Name of Bank:

Account #:

Amount (in figures):

Amount in words:

Type of Account (check one): Checking  Savings

Employee Signature:

Date:

Adapted from Printable Bank Deposit Slip Templates and Example

([Link]

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 ’s New

Task 2
What kind of form did you fill out in the previous activity? Let us leave that question for now.
Next, same with Task 1, copy and fill out the form below:

Image adapted from [Link]

(Source: [Link]

The form is labeled “Client Information Form”, but what is the purpose of this form?

4 NegOr_Q3_FABM211_Module7_V2
 is It

The form you filled out in Task 1 is a simple example of a deposit slip, while the form
in Task 2 is a form given to an individual who would want to open an account in Philippine
National Bank (PNB). This module will give you insights into the different types of accounts
common for personal and business purposes.

Types of Bank Accounts Normally Maintained By a Business

Different types of bank accounts serve different needs. It is wise to put money into the
best account type for your financial goals, so you get access to the right tools for spending and
saving. Doing so allows you to maximize the return from your bank, minimize fees, and manage
your money conveniently (Oneil, 2020). Business usually maintains two types of account: (1)
savings account, and (2) checking or current account.

Savings Account

These are intended to provide an incentive for the depositor to save money. The
depositor can make deposits and withdrawals using the form provided by the bank. Banks
usually pay an interest rate that is higher than a checking account or a current account. Some
savings accounts have a passbook, in which transactions are logged in a small booklet that the
depositor keeps. Some savings accounts charge a fee if the balance falls below a specified
minimum (Monfero, Andres, & Honorario, 2016).

Consumers use this type of bank account to set aside money for future use. Since your
deposits collect interest, your money grows over time.

Savings accounts are typically the first official bank account anyone opens. Children
may open an account with a parent to establish a pattern of saving. Teenagers can also open
accounts to stash cash earned from a first job or household chores and manage money while in
college.

Opening a savings account also marks the beginning of your relationship with a
financial institution. For example, when joining a credit union, your “share” or savings account
establishes your membership.

A savings account is an excellent place to park cash for financial goals or emergencies
safely and separately from the money you use for ongoing expenses. According to Dave
Ramsey (Ramsey, 2020), the following are the things to consider when planning to open a
savings account:

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Features to Look for in a Savings Account

• No monthly maintenance fees.

• Online access to your account, including transfers from your checking account.
• A competitive interest rate (it will not be much, but something is better than nothing!).

Things to Watch Out for in a Savings Account

• Interest earned is considered taxable income.

• Some banks may require you to maintain a minimum balance.
• Might be limits on the number of transfers and withdrawals you can make each month.
•
Savings Account Tips
• If local banks or credit unions are too expensive, look at online-only options. Online
savings accounts often pay the most interest and charge the lowest fees.
• To build up your savings account, drop a lump sum of cash into an account to start
with or set up automatic monthly deposits into savings.

Checking or Current Accounts

Checking accounts are used for everyday spending. The key features of this type of
bank account are a linked debit card you can use for purchases or ATM withdrawals, as well
as check-writing abilities. The account type also allows you to deposit cash or checks and pay
bills. Most banks now offer online bill-pay services through checking accounts, streamlining
payments. While traditional checking accounts do not earn interest, interest-bearing checking
accounts provide an opportunity to get extra interest on top of what you get from a savings
account. This basic type of bank account is the best place to keep cash for short-term use and
is essential to managing your monthly cash flow. (Oneil, 2020)

Money held under a checking account can be withdrawn through the issuance of a
check. Banks usually allows numerous withdrawals and unlimited deposit under this type of
account. The interest rate for a checking account is usually lower as compared to a savings
account. The account holder or depositor of a checking account is normally provided at the end
of the month a bank statement showing all the deposits made, checks paid by the bank, and the
balance of the account. The depositor is given easy access to the funds as compared to a savings
account. (Monfero, Andres, & Honorario, 2016)

According to Dave Ramsey (Ramsey, 2020), the following are the pros and cons when
planning to open a current account.

Features to Look for in a Checking Account

• No minimum balance is required to set up or maintain.

• Direct deposit.
• Online banking through your bank’s app or website.

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Things to Watch Out for in a Checking Account

Big banks, and even credit unions, are notorious for charging fees. It is one of the ways
they make their money. So, do your research before you open your checking account and find
out what you could be on the hook for. Here are some of the most common fees:

Overdraft fees. One of the good things about spending only cash is that you cannot
spend more than you have got. But with a checking account, it is possible to spend more
than you have. That is called overdrawing your account, and it comes with penalties.

Returned (“bounced”) check fees. The tricky thing with paper checks is there is a lag
between when you write it and when it gets cashed. Technically, there is no “expiration
date” on checks, but most banks will not cash anything more than six months old. So,
when you write a check, consider that money gone. Write it down in your check ledger
so you do not forget. If you do not, you could accidentally spend that money twice.
Then, if your check gets cashed and you do not have the funds to cover it, it will
“bounce.” And your bank will charge you a fee to process the bounced check.

Monthly maintenance fee. This is another place where banks make a ton of easy
money. They are charging you a fee to keep your money in their bank. Even at ₱250
per month, you are looking at ₱3,000 a year. That is money that could be going toward
your debt or into savings!

Certificates of Deposit (CDs)

A Certificate of Deposit is like a savings account that holds your money for a fixed
term; three months or five years, for example. It usually allows you to earn more than any of
the accounts listed above, but you will have to commit to keeping your money in the Certificate
of Deposit for the full term (ending on the "maturity date") to avoid an early withdrawal
penalty.

This type of bank account is best for saving for financial goals with a planned end date.
For example, if you know you are going to take a trip abroad within six months, a Certificate
of Deposit would be a good place to keep (and grow) your money until you need it.

Features to Look for in a Certificate of Deposit

• While they are relatively low risk and you can earn some interest, there are better places
to put your money!

Things to Watch Out for in a Certificate of Deposit

• You will typically earn more interest in a Certificate of Deposit than in a traditional
savings account but without the ability to access those funds whenever you want.
• You will pay penalties if you withdraw your funds before the Certificate of Deposit
matures.

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Good for: Money that you do not need to spend right away. You will earn more by locking it
up for a while, but both short- and long-term Certificate of Deposits are available.

Drawbacks: If you decide to pull your funds out early, you'll have to pay a penalty. That penalty
might wipe out everything you earned, and even eat away at your initial deposit.

Certificate of Deposit Tips

If you are concerned about locking up all of your money, set up a Certificate of Deposit
ladder (multiple Certificate of Deposits with staggered maturity dates) to make a portion of
your savings available periodically. To avoid penalties altogether, look for banks that offer
flexible Certificate of Deposits that give you the option to withdraw money early—without a
penalty.

’s More

Preparation of Bank Deposit and Withdrawal Slips

A withdrawal slip and deposit slip are written orders to the bank. These slips are used
to take out money or to put in money to the depositor’s account.

Deposit Slip

The bank provides a deposit slip that the depositor will fill up every time the depositor will
put in money into his account. The usually required information in a deposit slip are:

• Account Name – this is the complete name of the depositor that is reflected in the
records of the bank. If it has a passbook, the account name is indicated on the first page
inside the passbook.
• Account Number – this is a unique identifier of the account maintained by the
depositor.
• Date of Deposit
• Type of Account - savings or current.
• Currency – the currency a depositor would want to withdraw, i.e., peso, dollars, dinar,
etc.
• Amount in words and in figures – the amount that the depositor wishes to put
into his account. The amount to be deposited may be in form of cash or check. If it is a
cash deposit, the breakdown of the cash is usually listed in the deposit slip if it is a
check deposit, the details of the checks are indicated in the deposit slip, for example:
Issuing Bank, Address of the Issuing Bank, date of the check and the amount.

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Figure 1. Sample of bank deposit slips from Eastwest Bank (Source:
[Link]

Withdrawal Slip

Without a withdrawal slip, the bank will not allow you to get money from your account.
The required information in the withdrawal slip are (in no particular order or format):

• Account Name - the name of the depositor.

• Account Number – the unique identifier given by the bank for every account
maintained.
• Date of the withdrawal
• Type of account
• Currency
• Amount to be withdrawn - the amount that the depositor wishes to withdraw from
his account.
• The amounts in words and in figures are indicated.
• Signature of the Depositor – this is the most important part of the withdrawal slip.
The signature is proof that the depositor is authorizing the bank to get money from his
account. Usually, the bank compares the signature in the withdrawal slip against the
signature in the bank records submitted during the opening of the account.

Note that withdrawal and deposit slips may vary in size and format. But all the
important details listed above are what is always found regardless of what bank the deposit and
withdrawal slips are from.

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Figure 2. Sample of bank withdrawal slips from Eastwest Bank. (Source: Mr. Mark Anthony
Lumagas)

There are instances that the depositor cannot attend personally to withdraw the funds,
he/she may authorize a representative by indicating the name of the representative in the space
provided and the representative must sign. There is a need for the representative to bring a valid
identification card (ID) upon withdrawal otherwise the bank will not approve the withdrawal.
The types of valid IDs differ among banks. Check your banks to what are the valid IDs they
require. Base on BSP Circular No. 608 series of 2008, the following are the list of valid IDs
for all types of financial transactions by banks and non-bank financial institutions under Banko
Sentral ng Pilipinas (BSP) supervision (Banko Sentral ng Pilipinas 2008):
• Passport
• Driver’s License
• Professional Regulation Commission (PRC) ID
• National Bureau of Investigation (NBI) Clearance
• Police Clearance

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 • Postal ID
• Voter’s ID
• Barangay Certification
• Government Service Insurance System (GSIS) e-Card
• Social Security System (SSS) Card
• Senior Citizen Card
• Overseas Workers Welfare Administration (OWWA) ID
• OFW ID
• Seaman’s Book
• Alien Certification of Registration/Immigrant Certificate of Registration
• Government Office and GOCC ID, e.g., Armed forces of the Philippines (AFP ID),
Home Development Mutual Fund (HDMF ID)
• Certification from the National Council for the Welfare of Disabled Persons (NCWDP)
• Department of Social Welfare and Development (DSWD) Certification
• Integrated Bar of the Philippines ID
• Company Ids Issued By Private Entities or Institutions Registered With or Supervised
or Regulated Either By the BSP, SEC or IC.

What Is a Passbook Savings Account?

A passbook savings account is the classic name for a traditional savings account.
Though it may seem odd now, tellers record the deposits, withdrawals, and interest earned for
account holders in a small physical booklet called a passbook (Sivens and Siegel 2020).

Today, apps and digital banking have made passbook accounts largely obsolete.
Passbook savings accounts still exist, but they are offered by relatively few banks and are rarely
promoted even where they remain an option. In general, the accounts are now more commonly
associated with savings accounts for children, though they may appeal to other types of
customers as well.

Which Type of Bank Account Is Right for You?

Part of taking control of your money means making sure you are keeping it in the best
place possible for where you are in your money journey. If you are just starting to get a hold
of your finances, checking and savings account is the best place to start.

Then, after you are completely out of debt and have your 3- to 6-month emergency fund
saved, you can start saving for retirement by exploring other accounts that best suits your
business needs. And do not forget to avoid CDs, stocks, bonds, and other unreliable investment
strategies.

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 ’s More

Identification.
Direction: Identify which requirements are in the wrong place and make necessary
corrections needed in the savings deposit slip (2 points each).

Name of Bank: 1. 0008012312345

Account #: 2. ABC Bank

Amount (in figures): 3. Seven Thousand Pesos

Amount in words: 4. ₱ 7,000.00

Type of Account (check one) 5. :  Checking  Savings

Employee Signature: 6. October 6, 2021

Date: 7.

1.
2.
3.
4.
5.
6.
7.

I Have Learned

Complete the following statements. Write your statements in your activity notebook.

1. As an ABM student, I have learned that _______________________.

2. As an ABM student, I have realized that_______________________.

3. Using the knowledge I have learned in this lesson, I will apply

_______________________.

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 I Can Do

Investigating Bank Accounts

• What happens to interest if you put more money in the bank?

• Which bank should you consider opening an account? To answer these concerns,
choose any three (3) banks available in Negros Oriental that offer savings account.
Which bank would you prefer to open a savings account with? Why?

ESSAY RUBRICS
Level of Achievement General Approach Comprehension
Exemplary •Addresses the question. •Demonstrates an accurate and complete
(10 pts each) •States a relevant, justifiable understanding of the question.
answer. •Backs conclusions with data and
•Presents arguments in a logical warrants.
order. •Uses 2 or more ideas, examples and/or
arguments that support the answer.
Adequate •Does not address the question •Demonstrates accurate but only adequate
(6 pts each) explicitly, although does so understanding of question because does
tangentially. not back conclusions with warrants and
•States a relevant and justifiable data.
answer. •Uses only one idea to support the answer.
•Presents arguments in a logical •Less thorough than above.
order.
Needs Improvement •Does not address the question. •Does not demonstrate accurate
(3 pts each) •States no relevant answers. understanding of the question.
•Indicates misconceptions. •Does not provide evidence to support
•Is not clearly or logically their answer to the question.
organized.
No answer (0 pts)

Multiple Choice. Select the letter of the correct answer.

1. Withdrawing is ____________________.
a. Keeping track of money.
b. Putting money in a bank account.
c. Taking money out of bank account.
d. None of the choices

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2. Bank account is ____________________.
a. Proof of identification
b. An agreement is made by a bank to keep your money.
c. A plastic card used to withdraw money.
d. None of the choices
3. Deposit is ____________________.
a. Taking money out of your bank account.
b. Putting money in your bank account.
c. A plastic card used to withdraw money.
d. None of the choices.
4. The business dealing with money and credit is ____________________.
a. Banking c. Education
b. Health care d. Technology
5. The amount of money a bank charges for the privilege of allowing a person to borrow
money or the amount of money the bank pays a person to deposit his money for the
bank to invest is called ___________.
a. Loan c. Deposit
b. Mortgage d. Interest
6. In financial transactions, a CD is a ____________________.
a. Certificate of Debt
b. Certificate of Deposit
c. Citizen’s Deposit
d. Certificate of Collateral
7. Why would a company put money in a bank account?
a. To save it c. For protection
b. To obey the law d. To hide it
8. What is the perk of having a bank account?
a. Earning interest
b. Using an ATM
c. Having a friendly banker to advise you
d. Prestige

9. What has been happening to bank fees over the years?

a. Decreasing c. Staying the same
b. Increasing d. Fluctuating
10. Why would a financial adviser recommend a bank account?
a. The returns are higher than investing in the stock market.
b. The adviser gets a commission from the bank.
c. It makes budgeting easier.
d. It ensures the safety of money.

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NegOr_Q3_FABM211_Module7_V2 15
PRE-ASSESSMENT ASSESSMENT
1. C 1. C
2. A 2. B
3. A 3. B
4. A 4. A
5. B 5. D
6. C 6. B
7. B 7. A
8. C 8. A
9. B 9. B
10. C 10. D
WHAT’S MORE
1. ABC Bank
2. 0008012312345
3. ₱ 7,000.00
4. Seven Thousand Pesos
5. Savings
6. Signature
7. October 6, 2021
References

Online Source:

[Link]

Banko Sentral ng Pilipinas. 2008. "Circular No. 608 Series of 2008." Valid Identification Cards
(IDs) for Financial Transactions. Manila, May 20.
Ford, Joe. 2021. [Link]
withdrawal-slip-and-a-deposit-slip/. April 24. Accessed December 15, 2021.
[Link]
and-a-deposit-slip/.
n.d. [Link] Accessed December
15, 2021. [Link]
Miczulski, Matt. 2021. [Link] may 21. Accessed
December 15, 2021. [Link]
Monfero, Reymond Patrick P., Carlsberg S. Andres, and Christopher B. Honorario. 2016. Fundamentals
of Accountancy, Business, and Management 2: Teaching Guide for Senior High School. Quezon
City, May.
nichols, tom. 2021. [Link] may 20.
Accessed December 15, 2021. [Link]
of-account.
O'Neil, Erin. 2021. [Link] October 24.
Accessed December 15, 2021. [Link]
315458.
Oneil, Erin. 2020. Types of Bank Accounts. November 23. [Link]
bank-accounts-315458.
2021. "Printable Bank Deposit Slip Templates and Examples." Best [Link]. Accessed January
28, 2021. [Link]
punchng. 2019. [Link] April 1. Accessed
December 15, 2021. [Link]
Racadio, Cathleen. 2021. [Link]
university/accountancy/w1-fabm2-bank-transactions-unlocked/11848624. Accessed
December 15, 2021. [Link]
university/accountancy/w1-fabm2-bank-transactions-unlocked/11848624.
Ramsey, Dave. 2020. 4 Most Common Types of Bank Accounts. August 24.
[Link]
Sivens, Nicole, and Rachel Siegel. 2020. Passbook Savings Account. August 9. Accessed January 28,
2021. [Link]

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