Bank On It

1. Bank On It Personal Finance Unit

2. Why Learn About Banking?

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

4. Objectives By 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.

5. 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.

6. Bank A 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.

7. Why Keep Money in a Bank? • Safety • Convenience • Cost • Security • Financial future

8. Types of Financial Institutions • Banks • Credit unions • Thrifts

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

10. Account Verification The 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!

11. Deposit • A deposit is money you add to your account using a deposit slip.

12. Balance • The balance is the amount of money you have in your bank account.

13. Withdrawal A withdrawal is money you take out of your account using: • Checks • Withdrawal slips • ATMs • Check/debit cards

14. What’s a Fee?

15. Fees Banks deduct fees from your account for: • Certain services (monthly maintenance fee). • Penalties (for bouncing a check).

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

17. Practice Exercise Instructions: • Read the scenario • Carl 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 Carl’s account after he made the withdrawal and deposit?

18. Deposit Accounts Accounts 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.

19. Non-Deposit Accounts These accounts are NOT FDIC-insured. • Stocks • Bonds • Mutual funds

20. Additional Banking Services • Direct deposit • Money order • Online and telephone banking • Automated Teller Machine (ATM)

21. Additional Banking Services • Money transfer • Debit card • Stored value cards • Loan

22. Privacy Notices Notices 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.

23. Opting Out You can opt out by: • Reading the privacy notice to find out how. • Calling 1-888-5-OPTOUT (1-888-567-8688). • Visiting www.optoutprescreen.com

24. Important Bank Employees Get to know these important bank employees: • Customer service representative • Teller • Loan officer • Branch manager