Bank On It

Bank On ItPersonal Finance UnitWhy Learn About Banking?

PurposeBank On It :Is an overview of banking services. Will help you build a positive relationship with banks, thrifts, and credit unions.

ObjectivesBy the end of this presentation, you will be able to:Identify the major types of insured financial institutions.Identify five reasons to use a bank.Describe the steps involved in opening and maintaining a bank account.

Objectives (continued)Describe two types of deposit accounts.Identify additional bank services that come with deposit accounts.Describe the main functions of the bank customer service representative, teller, loan officer, and branch manager.

BankA business that:Offers you a safe place to keep your money.Uses your deposits to make loans. Provides a variety of services.

Also called a financial institution.

Why Keep Money in a Bank?SafetyConvenienceCostSecurityFinancial future

Types of Financial InstitutionsBanksCredit unionsThrifts

Opening & Maintaining a Bank AccountSteps:Open the account and go through account verification.Make deposits and withdrawals.Record interest and fees.Keep track of your account balance.

Account VerificationThe bank:Reviews your credit and past banking history.Checks your photo identification.Determines if you can open an account.

Now you can deposit your money!

DepositA deposit is money you add to your account using a deposit slip.

BalanceThe balance is the amount of money you have in your bank account.

WithdrawalA withdrawal is money you take out of your account using:ChecksWithdrawal slipsATMsCheck/debit cards

Whats a Fee?

FeesBanks deduct fees from your account for:Certain services (monthly maintenance fee).Penalties (for bouncing a check).

InterestInterest is a percentage of your balance that the bank pays you for keeping your money at that bank.

Practice ExerciseInstructions:Read the scenarioCarl just opened a bank account and deposited $500 cash. The next day, he wrote a check to pay his electric bill for $70. At the end of the week he received a paycheck for $870 and deposited it into his account.What is the balance in Carls account after he made the withdrawal and deposit?

Deposit AccountsAccounts that let you add money to the account:Checking accounts let you write checks to pay bills or buy goods.Savings accounts always earn interest.

Non-Deposit AccountsThese accounts are NOT FDIC-insured.StocksBondsMutual funds

Additional Banking ServicesDirect deposit Money order Online and telephonebanking Automated TellerMachine (ATM)

Additional Banking ServicesMoney transferDebit card Stored value cardsLoan

Privacy NoticesNotices that companies involved in financial transactions must send you. They explain:What personal financial information is collected.If they intend to share it.How to limit the sharing.How your personal financial information is protected.

Opting OutYou can opt out by:Reading the privacy notice to find out how.Calling 1-888-5-OPTOUT (1-888-567-8688). Visiting www.optoutprescreen.comImportant Bank EmployeesGet to know these important bank employees:Customer service representativeTellerLoan officerBranch manager