Checking and credit

Saving account Saving accounts: are accounts maintained by retail financial institutions that pay interest but cannot be used directly as money in the narrow sense of a medium of exchange (for example, by writing a check). These accounts let customers set aside a portion of their liquid assets while earning a monetary return. Interest- money paid regularly at a particular rate for the use of money lent, or for delaying the repayment of a debt.

Online savings account Financial institutions such as Ally Bank, EverBank and Synchrony Bank do not have traditional 'brick and mortar' branches, and instead function as direct banks As of July 2015, these rates range from APY.[3] For comparison, the savings account products at traditional megabanks such as Bank of America, Wells Fargo, Chase, etc. offer interest rates of 0.01 APY.

Checking What is a Check ? It is a written document that authorizes the transfer of money from a bank account to a person or business. You can write a check to the amount of your balance

Check format Check Register

Bouncing a check When you write a check that you cannot pay, the check is returned to the bank. - Bouncing a check Avoid overdrawing your account. Large fee’s Additional fee’s

Endorsing a Check When you receive a check, you should take or mail the check to your bank or deposit it or cash it. Endorse – means to sign your name on the back of the check Check your statements

A-CASH-CHECK A check payable to cash is (more or less) just like cash - anybody can use it. If the check gets lost, whoever finds it can get the money unless you stop payment on the check first. Likewise, the recipient can pass the check on to somebody else.

Cashing a check For instance, to cash a $1,000 check, a $5 plus 1 percent fee means you'll pay $15 for the check-cashing service. Other places are likely to have lower fees. The check-issuing bank: A bank will only cash a check for a non-customer if a check is issued by that specific bank.

Debit card or check card A debit card or check card (ATM) is a card that you can use to withdraw money directly from your checking account.

Electronic funds transfer (EFT) EFT- is the transfer of money from one bank account to another by electronic means Online banking allows you to mange your money from the computers and make payments via the internet.

Credit Credit - money you can use now but pay back later with an interest charge. – Personal Loans – School loans – Credit cards Not that easy to get credit you must fill out an application, from a financial institution and approved to receive a loan

Installments, Secured, and Credit Cards Most loans are Installment loans large lump sum of money Down payment – is a percentage of the total payment Also might include application fee.

Secured Loans Secured Loans – guaranteed by collateral, an asset such as the borrowers home or car boat or first born. Collateral -something pledged as security for repayment of a loan, to be forfeited in the event of a default

Credit cards Credit cards- are the easiest form of credit. Disadvantages Cost of credit can be very high Including annual fees and finance charges Finance charges – fee based on the amount you owe and the interest charged on the credit

APR The Federal Truth in Lending Act : requires lenders to state the cost of the interest as an annual percentage rate- yearly cost of a loan. Conforming and FHA Loans Interest APR 30-Year Fixed Rate4.125%4.150% 30-Year Fixed-Rate FHA3.875%4.900% 15-Year Fixed Rate3.250%3.356% 7/1 ARM3.250%3.221% 5/1 ARM FHA3.500%3.704% Larger Loan Amounts in Eligible Areas – Conforming and FHA. 30-Year Fixed Rate4.125% 30-Year Fixed-Rate FHA3.750%4.746% 7/1 ARM3.625%3.367% Jumbo Loans– Amounts that exceed conforming loan limits 30-Year Fixed-Rate Jumbo3.750%3.756% 7/1 ARM Jumbo3.125%3.131%

The Credit Bureau Before lending you money, lenders often ask for personal information. Get your credit bureaus or credit report. Credit bureau is an agency that collectes information on how promptly individuals and businesses pay their bills and repay there loans and depts

You need credit But Mr. Lara what if I don’t have a credit card.? How do I build up my credit? So I can buy a new car and stop riding around in my in moped You get a credit card duh!!

Getting credit Yeah but it’s not that easy. You need to be 18, plus you need a job, plus they only give you like 200 dollars plus You can get your first credit card a couple of ways Get your parents to get you credit card under their credit card company Department store credit card Gas station credit card Ask your bank for a first time credit card holder card

Secured credit card This is a type of credit card, that requires you to make a deposit to receive a credit limit on your credit card. Some secured credit cards will convert to non-secured cards after a certain period of positive credit history. New credit card rules go into effect February 22, 2009, will require credit card applicants under 21 to provide proof of income or have a cosigner to receive a credit card.

Use credit wisely Shop around for the best credit offer Use credit only when necessary If you have a problem repaying your debt, seek help through organizations such as American Consumer Credit Co