© Thomson/South-Western ECONOMIC EDUCATION FOR CONSUMERS Slide 1 Chapter 8 LESSON 8.2 Savings Institutions and Accounts Objectives: By the end of class, students will be able to:  Explain how to select the savings account that is right for you  Describe differences among types of savings institutions

© Thomson/South-Western ECONOMIC EDUCATION FOR CONSUMERS Slide 2 Chapter 8 Savings Institutions  Commercial banks  The largest financial institutions in the United States ( Chase, Bank of America, Wells Fargo)  Savings banks  Financial institutions owned by their depositors  Savings and Loan associations  Financial institutions that specialize in lending money to consumers to buy homes  Credit unions  Financial institutions that offer membership to people who share a common bond, such as people in a specific profession.

© Thomson/South-Western ECONOMIC EDUCATION FOR CONSUMERS Slide 3 Chapter 8 Deposit Insurance  Federal Deposit Insurance Corporation (FDIC)  Deposits in most commercial and savings banks are guaranteed by the Federal Government for up to $250,000. The original amount was $100,000.  Saving Association Insurance Fund (SAIF)  Deposits in Savings and Loan Associations are insured by this group  National Credit Union Share Insurance Fund (NCUSIF)  Deposits in Credit Unions are protected by this group

© Thomson/South-Western ECONOMIC EDUCATION FOR CONSUMERS Slide 4 Chapter 8 Savings Accounts  Interest rates  The percentage that financial institutions are willing to pay depositors for the amount of money they have saved with their bank  Fees and restrictions  Transaction Fees  ATM Fees  Early withdrawal penalties

© Thomson/South-Western ECONOMIC EDUCATION FOR CONSUMERS Student Practice/Application  1. Read pages in your Economics Textbook.  2. Complete Understanding Key Concepts questions 1-6 on page 265 of your Economics Textbook.  3. Complete Think Critically questions 7-10 on page 265 of your Textbook.  4. Complete Exit ticket Question Slide 5 Chapter 8