Banking

1. Banking For your Green backs

2. U. S. Federal Mint • U.S. Federal Mint operating bureau of the Department of the Treasury makes new coins. • U.S. Bureau of Engraving and Printing prints new currency. • New coins and currency are sent to the Federal Reserve Banks which distributes as needed.

3. Federal Reserve • The FED uses monetary policy to regulate the nation’s money supply. • Provides banking services to depository institutions. • Supervises and regulates most large banks. • Formulates and implements money policy.

4. Cash cards • Consumers purchase cash cards for a specific amount of money. • Money is loaded and stored on the card’s memory. • Money can be spent. • Some merchants allow customers to reloaded money on the cash cards.

5. Depositing large amounts of money • If a person makes a deposit of $10,000 or more into a bank account, the bank must notify the U.S. Treasury Department.

6. What is a Series EE savings bond? • Series EE savings bonds are issued by the U.S. Treasury. • They can be purchased for one-half of the face value. • Earn interest monthly • Buy a $50 Series EE bond for $25 • Within 17 years is guaranteed to reach face value of $50.00!

7. How can you earn interest on your money? • Certificates of deposit “CD” – less liquid • Earns higher interest rate than Money Market or Savings accounts. • Larger amounts of money deposited for a period of time for a fixed interest rate. Cannot be withdrawn without penalty! • 31 days to 8 years • Can be rolled over into another CD • Must pay taxes on interest earned

8. How can you earn interest on your money? • Money market account – less liquid • Earns higher interest rate than Savings accounts • Large amount of money deposited for a fixed period of time for a fixed interest rate. • Must pay taxes on interest earned.

9. How can you earn interest on your money? • Savings account – most liquid • Earns lower interest than Certificates of deposit and Money market with no fixed period of time. • Must pay taxes on interest earned.

10. Safe-Deposit Box • Safe-Deposit box is a metal box in a bank’s vault • Requires 2 keys • 1 required by bank • 1 required by customer/owner • Only owner can access box • Pay a fee to rent • Store important papers – Mortgage Loan Papers

11. Automated Teller Machine • No fees if you use your own bank • Personal Identification Number “PIN” • Keep it safe!

12. Checking Accounts

13. Types of Checking Accounts • Regular Checking • Designed for people who write a few checks each month and do not keep a minimum amount of money in the account • Interest-Bearing • Account that earns interest on the balance • Requires a minimum amount in the account at all times

14. Tools forChecking Accounts • Check / Debit Card • Can be used anywhere Visa & Mastercard are accepted • Instantly drafts payment from your account • Always sign or write “Check ID” on the back! • Check Book • Official check forms from the bank • Check Register • Used to record all checking transactions (debits, checks, deposits, transfers,, etc.) • Bank Statement • Official bank document listing all checking transactions • Emailed or mailed every month

15. Types of Checks • Personal • Travelers • Cashier • Certified Click here to learn about the difference between each type of check.

16. Certified Check • Certified Check is a check for which the bank guarantees payment. • It is stamped by the bank • Funds to cover are immediately withdrawn from depositor’s account.

17. Elements of a Check • Drawer: the owner of the account & the person who signs the check • Payee: the person to whom the check is written • Drawee: the bank or financial institution that pays the check

18. Cashing Checks • Endorsing a check is signing off that you are the payee listed. • Sign the line on the back of the check when you cash or deposit it. • You can also sign over a check to another payee. Endorse Check Here X_________________________________________________________________________________________________________________________________________________________ Do not sign / write / stamp below this line -------------------------------------------------------------------

19. Parts of a Check Today’s Date Name of Payee Amount Amount Spelled Out In Words Name & Address of Bank Purpose Signature

20. Writing Personal Checks • Use checks in order by number • Always use the current date • Write the payee’s name clearly on the line labeled Pay to the Order Of • Write the amount to be paid in numeric figures after the printed dollar sign $

21. Writing Personal Checks • Spell out in words the amount to be paid clearly on the line below the payees name • Indicate the purpose of the check on the line labeled For • Sign your check

22. Tips for Writing Checks • Write checks in ink • Only write checks if you have enough $$$ in your account to cover it • Use the current date

23. Tips for Writing Checks • Always fill in the amount • Void checks on which you make an error • Record every payment in your check register, including EFT

24. Caution! If you are not careful with your checking account, you might incur service charges from the bank! • Overdraft – using more debits or writing more checks than the money available in your account • Stop Payment- an order for a bank not to cash a particular check or set of checks

25. Reconciliation • Process of comparing your check register to your monthly bank statement • Verify that starting and ending balances match

26. http://www.themint.org/teens/writing-a-check.html http://www.themint.org/teens/balance-your-checking-account.html TheMint.org Follow the directions to practice writing checks and learn how to track your checking account!

27. How to complete A deposit Slip Watch the video on how to complete a deposit slip and then practice!