Activity 1………….Why Do You Need A Bank? Activity 2………The Many Services of a Bank

1. Activity 1………….Why Do You Need A Bank? • Activity 2………The Many Services of a Bank • Activity 3….The ABCs of a Checking Account • Activity 4……….Opening a Checking Account • Activity 5………………….How to Write a Check • Activity 6…..Maintaining a Checking Account • Activity 7……The ABCs of a Savings Account

2. Basic Banking Services - Activity 1 • ACTIVITY 1 • Why Do You • Need a Bank? • Overview • Purposes of banks • The differences between banks and • credit unions • Safety of financial institutions • Banks as money management tools • The Earned Income Tax Credit 2

3. Slide 1 – Safety of Financial Institutions Lesson Reference: Basic Banking Services, Activity 1 – Overhead 3 SAFETY OF FINANCIAL INSTITUTIONS COMMERCIAL BANKS CREDIT UNIONS 3

4. Slide 2 – EITC Lesson Reference: Basic Banking Services, Activity 1 – Handout 2 THE EARNED INCOME TAX CREDIT The Earned Income Tax Credit (EITC) is a federal income tax credit for low-income workers. The credit reduces the amount of tax an individual owes, and may be returned to the taxpayer in the form of a refund. Some states offer additional forms of EITC. Eligible workers must have an annual income and investment income that falls below a certain level. In tax year 2005, for example, if you are married, have two or more children, and are filing your taxes jointly, your combined annual income must not exceed $37,263. You must have a Social Security Number to receive the EITC. In tax year 2005, a family with two or more children could receive up to a $4,400 refund through the EITC.* 4

5. Basic Banking Services - Activity 2 • ACTIVITY 2 • The Many Servicesof a Bank • Overview • Financial services provided by a bank • Bank employees • Services that might be of personal benefit • The impact of state and federal regulations upon the security of a bank 5

6. REMITTANCE OPTIONS • TO SEND AND RECEIVE MONEY • 1. Money Transfer Organizations • 2. Bank Transfers • 3. Hand Delivery • 4. Mail • 5. Hawala • 6. Post Offices • 7. Stored Value Cards 6 Slide 1 – Remittance Options Lesson Reference: Basic Banking Services, Activity 2 - Overhead 1

7. BANK OCCUPATIONS • • Tellers • • Platform Bankers • • Mortgage Lenders • • Operations Manager • • Branch Manager 7 Slide 2 – Bank Occupations Lesson Reference: Basic Banking Services, Activity 2 – Overhead 2

8. Slide 3 - Electronic Bank Services Lesson Reference: Basic Banking Services, Activity 2 – Overhead 3 • ELECTRONIC BANK SERVICES • Online banking is the fastest growing Internet • activity in the U.S. • Types of Services • Bank Cards • Automated Services • Protect Your Passwords! 8

9. Slide 4 - Bank Card Types Lesson Reference: Basic Banking Services, Activity 2 – Overhead 4 BANK CARD TYPES • TYPE • Check Cards or • ATM/Debit Cards • Stored Value Cards • DESCRIPTION • Bank cards that allow for the payment of goods and services to be subtracted directly from a bank deposit account. • Can be used with merchants that take major credit cards—known as point of sale (POS) transactions. • Bank cards with preset, limited value. • Used to pay for goods and services. • Alternative to cash. 9

10. ELECTRONIC BANK SERVICES • • Direct Deposit • • Transfers between Accounts • • Transfers to a Third Party • • Online Banking • • Bank by Phone • • ATM 10 Slide 5 – Electronic Bank Services Lesson Reference: Basic Banking Services, Activity 2 – Handout 3

11. Slide 6 - Regulation of Electronic Banking Lesson Reference: Basic Banking Services, Activity 2 – Overhead 5 • REGULATION OF ELECTRONIC • BANKING SERVICES • Electronic Fund Transfer Act • Protects consumers using any type of electronic • banking from loss and protects their privacy. • Banks must: • Offer consumers a record or receipt for all computer • transactions. • Investigate errors and report to consumer within ten days of error notification. • Customers are responsible to report any errors. 11

12. Basic Banking Services - Activity 3 • ACTIVITY 3 • The ABCs of a Checking Account • Overview • Purposes of a checking account • Shopping for and comparing checking accounts 12

13. CHECKING ACCOUNT TERMS • Bank Statement • Cancelled Check • Check • Check Register/Ledger • Endorsement • Fee • Interest • Minimum Balance • Outstanding Transactions • Overdraft • Overdraft Protection • Payee • Reconciling a Bank Statement • Transaction Limits 13 Slide 1 - Checking Account Terms Lesson Reference: Basic Banking Services, Activity 3 – Handout 1

14. Slide 2 - Shopping Around Lesson Reference: Basic Banking Services, Activity 3 - Handout 2 SERVICES Location of bank Location of ATMs Banking hours Minimum balance required Minimum transactions or limits Interest-bearing accounts? Other COSTS Non-primary bank ATM transactions In-branch transaction fees Per-check fees Other checking fees Overdraft protection Printing of checks SHOPPING AROUND (THINGS TO ASK ABOUT WHEN OPENING A CHECKING ACCOUNT) 14

15. Basic Banking Services - Activity 4 ACTIVITY 4 Opening a Checking Account Overview • Checking Account Application Process • The Application • Acceptable Forms of ID • The Signature Authorization Card • The PATRIOT Act 15

16. OPENING A CHECKING ACCOUNT 16 Slide 1 – Opening a Checking Account Lesson Reference: Basic Banking Services, Activity 4 – Handout 1

17. Slide 2 - Commonly Accepted Forms of IDLesson Reference: Basic Banking Services, Activity 4 – Handout 2 COMMONLY ACCEPTED FORMS OF ID Primary ID* • Photo Driver’s License issued within the U.S. or Canada • State Non-Driver Photo ID • Photo Learner’s Permit • Government Photo ID • U.S. Passport • Non-U.S. Passport • Resident Registration Card • Mexican Consular ID (Matricula Consular) • Naturalization Certificate • Employee Photo ID (from a recognizable employer) • Photo Trade License (barber, plumber, electrician, etc.) • Student Photo ID (college/trade school) • Medicare Card (must be 65 or older) * Financial institutions' ID requirements may differ; check with the institution first before applying for an account. 17

18. Slide 3 - Commonly Accepted Forms of IDLesson Reference: Basic Banking Services, Activity 4 – Handout 2 COMMONLY ACCEPTED FORMS OF ID Secondary ID* • Pay Stub • Car Registration • Mortgage Statement • Letter of Introduction from Bank, Embassy, or well-known Employer • Welfare Card • Supplemental Health Insurance Card • Foreign Driver’s License • State/Local Gun Permit • Utility Bill (Name and address of individual account should be listed) • Current Bank Statement • National Credit Card • Bank-issued Debit or Check Card * Financial institutions' ID requirements may differ; check with the institution first before applying for an account. 18

19. THE PATRIOT ACT Congress passed the PATRIOT Act in response to the terrorist attacks of September 11, 2001. Financial institutions are now required to collect certain information when a new account is opened. 1. The customer must provide identification that includes name, date of birth, address, and identification number. 2. The institution must maintain a copy of the information used to verify the person’s identity. 3. The institution must determine whether the applicant appears on the lists of known or suspected terrorists or terrorist organizations. 19 Slide 4 – The PATRIOT Act Lesson Reference: Basic Banking Services, Activity 4 – Overhead 1

20. SIGNATURE AUTHORIZATION CARD 20 Slide 5 – Signature Authorization Card Lesson Reference: Basic Banking Services, Activity 4 – Handout 3

21. Basic Banking Services - Activity 5 ACTIVITY 5 How to Write a Check 21

22. Slide 1 - Writing a Check Lesson Reference: Basic Banking Services, Activity 5 – Handout 1 WRITING A CHECK 22

23. Basic Banking Services - Activity 6 • ACTIVITY 6 • Maintaining a • Checking Account • Overview • Check 21 • Keeping a check register • Making a deposit into a checking account • Reconciling a bank statement • Maintaining a checking account • Avoiding Overdrafts 23

24. CHECK 21 Check 21 is a federal law that helps banks handle more checks electronically and that makes check processing faster and more efficient. Under this law, a check deposited in a bank is typically “delivered” overnight to the paying bank and deducted from the checkwriter’s account on the next business day. Money may be deducted from your checking account almost immediately. 24 Slide 1 – Check 21 Lesson Reference: Basic Banking Services, Activity 6 – Handout 1

25. Slide 2 - Keeping a Check Register Lesson Reference: Basic Banking Services, Activity 6 – Handout 2 KEEPING A CHECK REGISTER 25

26. Slide 3 - Making a Deposit - Endorsing a Check Lesson Reference: Basic Banking Services, Activity 6 – Handout 2 MAKING A DEPOSIT - ENDORSING A CHECK The Back Side of a Check Restrictive Endorsement (most secure) Blank Endorsement(least secure) Endorsement to a third party 26

27. Slide 4 - Making a Deposit - Completing a Deposit Slip Lesson Reference: Basic Banking Services, Activity 6 – Handout 2 MAKING A DEPOSIT - COMPLETING A DEPOSIT SLIP 27

28. Slide 5 - Reconciling a Bank Statement Lesson Reference: Basic Banking Services, Activity 6 – Handout 2 RECONCILING A BANK STATEMENT 28

29. OVERDRAFTS AND BOUNCED CHECKS Overdrafts and bounced checks occur when you complete a financial transaction (e.g., write a check) for more than what is available in the account. Your financial institution may pay the amount and charge you a fee, known as an “overdraft fee” or a “nonsufficient funds fee.” Tip: Avoid overdraft or non-sufficient funds fees by making a habit of monitoring the balance in your checking account. 29 Slide 6 – Overdrafts and Bounced Checks Lesson Reference: Basic Banking Services, Activity 6 – Overhead 1

30. Basic Banking Services - Activity 7 • ACTIVITY 7 • The ABCs of aSavings Account • Overview • Purpose of a savings account • Shopping for a savings account • Applying for a savings account • Monthly bank statement checkup 30

31. Slide 1 - Reasons to Save Lesson Reference: Basic Banking Services, Activity 7 – Overhead 1 • REASONS TO SAVE • Emergencies • Future Purchases • Future Investments 31

32. Slide 2 - Shopping for a Savings Account Lesson Reference: Basic Banking Services, Activity 7 – Overhead 2 • SHOPPING FOR A • SAVINGS ACCOUNT • Factors to consider: • Safety • Risk • Liquidity • Minimum Account Balance Requirements • Fees and Service Charges • Interest Rate • Returns (Earnings) • Automatic Transfer • Direct Deposit 32

33. OPENING A SAVINGS ACCOUNT 33 Slide 3 – Opening a Savings Account Lesson Reference: Basic Banking Services, Activity 7 – Overhead 3

34. BANK STATEMENT 34 Slide 4 – Bank Statement Lesson Reference: Basic Banking Services, Activity 7 – Overhead 4