TODAY’S AGENDA 1.Budgeting Project review- they are due electronically tomorrow 2.Budgeting Quiz (DVD) and test questions afterwards 3.Ch. 10 Baking 4.Ch. 12 Saving

BANKING Chapter 10

BANKING Comparing Financial Institutions Banking Electronically Managing a Checking Account Using Other Payment Methods

COMPARING FINANCIAL INSTITUTIONS 10.1 How do banks work?  Basically any type of financial institution where you may deposit money. Types of institutions  Commercial Banks  Mutual Savings Bank  Savings and Loans  Credit Union  Internet Bank Choosing a Financial Institution  Deposit insurance  FDIC- Federal Deposit Insurance Corporation  Services and Convenient Access  Rates and Fees

BANKING ELECTRONICALLY 10.2 EFT- Electronic Funds Transfer  Movement of funds by electronic means  how it’s transferred- teller machine, telephone or over the internet  Automated Teller Machine (ATM)–computer terminal that gives customers electronic access to their accounts  Personal Identification Number (PIN)- a secret code that protects the security of your accounts  Point of Sale Transaction (POS) -paying for an item by making an electronic funds transfer at the point of purchase  Debit Card -card that allows the user to subtract money from a bank account in order to obtain cash or make a purchase.

TYPES OF P.O.S. SALES ONLINE  When you enter your PIN number. The money is deducted from the account immediately OFFLINE  Offline debit transaction is possible if the debit card carries the logo of a credit card network. Instead of entering a PIN you sign a receipt. When using a debit card to make a purchase has advantages over writing a check. It’s faster, and you don’t have to carry a check book or present ID. Because it debits (subtracts from your account) quickly you have to make sure you always have the money in your account! Don’t look at the credit card logo and think you can just purchase it!

AUTOMATED SERVICES Direct Deposit Automated transfers between accounts Automated loan payment Automated payments to a third party

WHAT PROTECTS YOU? Laws protect to a certain degree. Credit card companies protect you too. There are benchmarks in place for your security.  Ex: if you go on vacation and you use your card in more than three or four places quickly there may be a flag on your account and you won’t be able to use it until you call the credit card company and verify that YOU are making those purchases. It’s a safeguard! More on that in our credit unit!

MANAGING A CHECKING ACCOUNT Use the packet to complete this portion of the presentation!

OTHER PAYMENT METHODS 10.4 Guaranteed Checks  Certified check  Cashier’s check Money Orders Traveler’s Checks Money Transfer Services Wire Transfers Prepaid Cards Online Payment Services