1 / 8

CHAPTER 5 MANAGING CHECKING AND SAVINGS ACCOUNTS

CHAPTER 5 MANAGING CHECKING AND SAVINGS ACCOUNTS. FIN 235 FALL 2012. MANAGING CHECKING AND SAVINGS ACCOUNTS. LEARNING OBJECTIVES Identify the tools of monetary asset management and sources of such financial services. Earning interest. Benefits of savings accounts.

manchu
Download Presentation

CHAPTER 5 MANAGING CHECKING AND SAVINGS ACCOUNTS

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. CHAPTER 5MANAGING CHECKING AND SAVINGS ACCOUNTS FIN 235 FALL 2012

  2. MANAGING CHECKING AND SAVINGS ACCOUNTS • LEARNING OBJECTIVES • Identify the tools of monetary asset management and sources of such financial services. • Earning interest. • Benefits of savings accounts. • Placing excess funds in a money market account. • Electronic money management including your legal protections.

  3. MANAGING CHECKING AND SAVINGS ACCOUNTS • MONETARY ASSET MANAGEMENT • Three Areas (tools) for Monetary Asset Management • Checking Accounts: preference for interest paying and low costs • Savings Accounts: monthly or quarterly compounding at competitive rates • Money market accounts: typically daily compounding

  4. MANAGING CHECKING AND SAVINGS ACCOUNTS • Providers of Monetary Asset Management Services • Depository institutions (commercial banks, savings & loan, credit unions • Major benefit: balances insured up to $250,000 per account* • Mutual funds (investment companies like Vanguard and Fidelity) • Financial Services companies (American Express, A.G Edwards) • Insurance companies

  5. MANAGING CHECKING AND SAVINGS ACCOUNTS • Interest-Earning Checking Accounts; mainly at credit unions • Savings Banks: passbook savings accounts, Certificates of Deposit (CD) • Money Market Accounts: many offer check writing privileges

  6. MANAGING CHECKING AND SAVINGS ACCOUNTS • ELECTRONIC MONEY MANAGEMENT • Online Banking • Improves ability to track deposits, disbursements • Makes identifying ID theft quick and easy. • Many banks provide this service free of charge • Paying bills on line • Payment verification • Can be set up to be automatic (each month) • Aids in record keeping and budgeting

  7. MANAGING CHECKING AND SAVINGS ACCOUNTS • Protecting your electronic accounts • Do all banking from home computer • Be careful of free Wi-Fi sites. Passwords are easily stolen by hackers • Change passwords regularly (every 3-4 months). • Don’t use personal names or places. Mix letters, numbers and symbols.

  8. MANAGING CHECKING AND SAVINGS ACCOUNTS • THE PSYCHOLOGY OF MONEY • Desperate times frequent drive bad decisions: lack of money is #1 stress maker • Never reveal personal financial details to friends or casual acquaintances Dangers of social network sites • Do Opposites Attract? Savers vs. Spenders • Being careless with personal information: shred documents containing sensitive data • HOMEWORK • Do the Math: 1, 4, 5

More Related