Understanding Banking Services: Overview, Remittance, Occupations, Electronic Services, and More

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 1

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 2

3. 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 3

4. BANK OCCUPATIONS • • Tellers • • Personal Bankers • • Mortgage Lenders • • Operations Manager • • Branch Manager 4

5. ELECTRONIC BANK SERVICES • Online banking is the fastest growing Internet • activity in Canada. • Types of Services • Bank Cards • Automated Services • Protect Your Passwords! 5

6. BANK CARD TYPES • TYPE • 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. 6

7. AUTOMATED BANK SERVICES • • Direct Deposit • • Transfers between Accounts • • Transfers to a Third Party • • Online Banking • • Bank by Phone • • ABM 7

8. REGULATION OF ELECTRONIC • BANKING SERVICES • Electronic Funds Transfer Code • Initiated by the Ministry of Consumer and Corporate Affairs (CCAC) in 1989. It 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. 8

9. CHEQUING ACCOUNT TERMS • Bank Statement • Cancelled Cheque • Cheque • Cheque Register/Ledger • Endorsement • Fee • Interest • Minimum Balance • Outstanding Transactions • Overdraft • Overdraft Protection • Payee • Reconciling a Bank Statement • Transaction Limits 9

10. SERVICES Location of bank Location of ABMs Banking hours Minimum balance required Minimum transactions or limits Interest-bearing accounts? Other COSTS Non-primary bank ABM transactions In-branch transaction fees Per-cheque fees Other chequing fees Overdraft protection Printing of cheques SHOPPING AROUND (THINGS TO ASK ABOUT WHEN OPENING A CHEQUING ACCOUNT) 10

11. OPENING A CHEQUING ACCOUNT 11

12. 2 COMMONLY ACCEPTED FORMS OF ID Primary ID* • Driver’s Licence issued in Canada • Canadian passport • Certificate of Canadian Citizenship • Permanent Resident card or Citizenship and Immigration Canada Form IMM 1000, IMM 1442, or IMM 5292 • Birth certificate issued in Canada • Social Insurance card • Old Age Security card • Certificate of Indian Status • Provincial health insurance card (except Ontario, Manitoba, and PEI) • Provincial ID card, bearing the individual’s photograph and signature, issued by authorities such as Insurance Corporation of British Columbia, Alberta Registries, Service New Brunswick, etc. * Financial institutions' ID requirements may differ; check with the institution first before applying for an account. 12

13. COMMONLY ACCEPTED FORMS OF ID Secondary ID* • Employee photo ID card • Canadian University/ College photo ID card • Canadian bank or ABM/debit card • Canadian credit card • Canadian National Institute for the Blind (CNIB) client card • Foreign passport * Financial institutions' ID requirements may differ; check with the institution first before applying for an account. 13

14. SIGNATURE AUTHORIZATION CARD 14

15. WRITING A CHEQUE 15

16. Maintaining a • Chequing Account • Overview • Keeping a cheque register • Making a deposit into a chequing account • Reconciling a bank statement • Maintaining a chequing account • Avoiding overdrafts 16

17. KEEPING A CHEQUE REGISTER 17

18. MAKING A DEPOSIT - ENDORSING A CHEQUE The Back Side of a Cheque 18

19. MAKING A DEPOSIT - COMPLETING A DEPOSIT SLIP 19

20. RECONCILING A BANK STATEMENT 20

21. OVERDRAFTS AND BOUNCED CHEQUES Overdrafts and bounced cheques occur when you complete a financial transaction (e.g., write a cheque) 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 chequing account. 21

22. 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 22

23. REASONS TO SAVE • Emergencies • Future Purchases • Future Investments 23

24. 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 24

25. OPENING A SAVINGS ACCOUNT 25

26. BANK STATEMENT 26