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Banking services. Where to Stash Your Cash. How banks Work. Objectives Identify how banks operate and how they benefit customers. Describe the benefits of using a checking account. Role of banks. Banks in the business of making a profit Savings Account Home Loan Provide Security

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Banking services

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Banking services

Banking services

Where to Stash Your Cash

How banks work

How banks Work

  • Objectives

    • Identify how banks operate and how they benefit customers.

    • Describe the benefits of using a checking account

Role of banks

Role of banks

  • Banks in the business of making a profit

    • Savings Account

    • Home Loan

  • Provide Security

    • Fire and theft

    • Increases purchasing power

    • Inflation vs. Interest

    • Banks are regulated

      • Required to keep some of your money

    • Money is insured up to $250,000 per owner (FDIC)

  • Make borrowing easier.

Types of money

Types of Money

  • Currency

    • Paper money or coins

    • Typically used for small transactions

  • Checks

    • Order to bank to pay a specified sum to a person or business on the check

    • Payee – the person who cashes the check

Types of money1

Types of Money

  • Checks (cont)

    • Advantages

      • Safety

        • Written to specific person

        • Lost or stolen no one else can cash it

        • Bank will ask for identification

      • Convenience

        • Do not need to carry a large amount of money

        • Send money by mail

Types of money2

Types of Money

  • Checks (cont)

    • Advantages (cont)

      • Records your transactions

        • Carbon Copy

        • Banks keep record of checks on you statement.

Checking accounts

Checking Accounts

  • Objectives

    • Demonstrate the ability to write, endorse, record, and deposit checks

    • Describe types of checking accounts and fees associated with them

Checking accounts1

Checking Accounts

  • Checking Account- a bank account that allows you to write checks to make payments

  • Open a checking account

    • Complete signature card

    • Valid identification

    • Initial deposit

    • Bank provides check for a fee

    • Under 18 need a co-owner

Checking accounts2

Checking Accounts

  • When you write a check include:

    • Date you write the check

    • Name of the payee

    • Amount written in words and numbers

    • Your signature

    • Description in memo space

Checking accounts3

Checking Accounts

  • Check register – booklet for recording transactions

    • Record each transaction right away

    • Record interest

    • Calculate balance

    • Record all check numbers

  • Helps us stay away from overdrawing

    • Overdrawing – write a check for more than you have in your account.

      • Fees: $10 - $38

      • Banks made 31.5 BILLION dollars on these in 2012

Checking accounts4

Checking Accounts

  • Cash a check

    • Endorse – sign your name on the back of a check

  • Deposits

    • Write amount of the check in the checks row.

    • If you have more than one check write it below the first one.

    • May have to write down bank number of each check.

    • Many need ID

Checking accounts5

Checking Accounts

  • Check Clearing process

    • When depositing a check you CANNOT withdrawal it immediately.

    • Check must clear first

    • Your bank needs to make sure the check writers bank has sufficient funds to pay for the check.

    • 2-3 business days.

Checking accounts6

Checking Accounts

  • Fees

    • Monthly Maintenance- may be waved if a monthly minimum is keptt

    • ATM Fee

    • ATM/Debit Card Replacement Fee

    • Debit Card Fee

    • Early Withdrawl Fee

    • Insufficient or Non-Sufficient Funds

    • Overdraft Fee

    • Teller Fee – If you go into the bank.

    • Other banking fees

Electronic banking

Electronic banking

  • Objectives

    • Describe types of electronic transactions you can make

    • Discuss your rights and responsibilities in electronic transactions

Electronic banking1

Electronic banking

  • Automated Tellar Machine (ATM)

  • Use card and personal identification number (PIN)to do banking transactions

    • Deposit Money

    • Withdrawal Money

    • Transfer Money

  • Mobile Banking

    • Picture taking

Electronic banking2

Electronic banking

  • Direct Deposit – Paychecks go right to bank account.

  • Debit Cards – Work much like checks. Like a credit card.

  • Automatic Bill Payments

  • Automatic Withdrawal (Mortgages)

Balance your checkbook

Balance your checkbook

  • Objectives

    • Compare transactions on a bank statement to entries in your check register

    • Be able to balance and reconcile your check book.

Balance your checkbook1

Balance your checkbook

1.) Confirm Transactions

2.) Take Balance from statement

3.) List deposits not shown on the statement

4.) Total statement balances and deposits

5.) List checks not on statement

6.) Total checks

7.) Check to see if balances match check book.

Other banking services

Other banking services

  • Objectives

    • Identify different types banking products.

Other banking services1

Other banking services

  • Cashier’s Check – bank’s own personal check, signed by the bank cashier.

    • Bank certifies that the funds are there.

    • More reliable than a personal check

  • Certified Checks – Personal check that has been stamped and signed by a bank officer.

    • Withdrawal money immediately from your account.

  • Money Orders – Check that draws on the money of the bank or financial business that issued it.

  • Travelers Checks – Checks that are paid for in advance and if they are lost or stolen the company will replace them.

  • Safety Deposit Box

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