Banking BasicsPersonal Finance

What Are Financial Institutions?

Four common Financial Institutions Commercial banks Savings and loan associations (S&Ls) Credit Unions Brokerage Firms

Deposit Services

Checking Accounts Savings accounts and certificates of

deposit (CDs) Automated teller machines (ATMs) Direct deposits and automated

withdrawals Online banking Deposit insurance

Credit Services

Credit cards Installment loans and credit lines Mortgages Home equity loans Student loans Small business loans

Investment Services

Retirement accounts (IRAs, SEPs, KEOGHs)

Stocks, bonds, and mutual funds

Answer questions a – e on page 63 of Exercise 9.1

Checking Out Checking Accounts

Choosing a checking account Special account Standard account Interest-bearing account

Opening a checking account Identification Choose type Signature card Deposit

Checking Out Checking Accounts

Making a deposit

ATM And Debit Cards

•ATM machines are convenient to use to deposit or withdraw funds•Need an ATM card and PIN•Charge to use ATM if ATM is not your bank’s ATM• ATM cards are often debit cards as well and can be used to make purchases•Debit card allows you to make purchases and have the money withdrawn directly from your bank account

Phone Banking

Bill paying, transferring funds between accounts, account information

Online Banking

Use 24/7 with secure connections Pay bills Transfer funds Check account balance Requires a user name and password All bank transactions are included

Endorsing a Check

A signature on the back of the check instructing the bank as to how the check may be cashed Blank endorsement allows you to cash or

deposit a check made out to you Restrictive endorsement, e.g. for deposit

purposes only Special endorsement allows you to

transfer the check to another person

Writing a Check

•Be sure you have enough money in your account to cover the check•Record the number, date, payee and amount in your check register•Subtract the amount of the check from the balance

Keep a Check RegisterCheck

#Date TRANSACTION

DESCRIPTONWITHDRAWAL DEPOSIT BALANCE

3/1 Deposit 250 00 250 003/7 CD Sales, CDs 30 00 220 00

3/8 A. J. Vitullo Co.sweaters 50 00 170 00

•Keep a check register even if when making all transactions via an ATM machine•All withdrawals and deposits should be recorded and the balance calculated after each transaction

Questions

Answer questions on page 67 in Exercise 9.2