Banking in the United States

U.S. Banking System Overview  The Federal Reserve System is the central banking system of the United States.  Regulates the banking system  Maintains the stability of the financial system  Protects the credit rights of consumers Currency is created outside of the Fed, the U.S. Department of the Treasury.

Banking Safety FDIC is the Federal Deposit Insurance Corporation  Insures deposits held in bank accounts – up to $250,000  All chartered banks are required to be a member of FDIC “Member FDIC”  TCF Bank is a member of the Federal Deposit Insurance Corporation

Types of Bank Accounts  Checking Accounts – account for everyday use  Interest Bearing  Non-Interest Bearing  Savings Accounts – reserved funds for future use  Regular Savings  Money Market  Time Deposit (CD’s)  Monetary Instruments – used as a form of payment  Cashiers Checks  Money Orders  Travelers Checks

Checking Accounts  Everyday Money Management  Allows you to easily pay for living expenses  Food, clothing, books, school supplies  Provides a place to deposit money your receive.  Financial aid awards, money from home, loans, stipends  Keeps your money safe.  Provides a record of your spending

ATM/Check Cards/OneCard Debit  Secret Codes or PIN numbers  Choose 4 or more digits to be used with ATM transactions and transactions with merchants.  VISA ® or MasterCard ® Logo and function  Debits the amount of the purchase from your checking account.

Account Opening Requirements  When you’re ready to open an account, you will be asked to provide the following:  Name  Local U.S. address  Home country address  Phone Number  address  Valid identification  Valid forms are: U.S. driver’s license or state ID, passport, U.S. military ID, Matricula Consular Card

Banking Tips  Complete all transaction tickets and checks  Endorse all checks  Always bring photo identification with you to the bank  Keep a check book register  Reconcile your bank statement  Contact your bank immediately with any discrepancies.  Be sure to keep your bank informed of any address, phone, and e- mail changes  When using your check card in another country, be sure to contact customer service to prevent disruption in your account. International service fees may apply when using your account out of the U.S.

Writing a Check

Balancing Your Checkbook Fee 8/23 ATM Fee

International Wire Transfers  To send a wire outside of the U.S. you must provide your bank with the following:  Bank Name  Bank Swift Code (if applicable)  City and Country of the Bank  Person’s Name and Address  Person’s Account Number  Ask about the charge $30 - $60  Certain restrictions apply for some countries. See your banking representative for details.

Domestic Wire Transfers  To receive a wire in the U.S. or to send a wire to someone with a U.S. bank account requires:  Bank Name  Bank Routing Number or ABA Number  Person’s Name and Address  Person’s Account Number  Ask about the charge $10 - $40

Credit Card  Credit Cards are a system of payment where the issuer lends money to the consumer. Consumers are allowed to revolve their balance (carry over balances from month to month) at the cost of interest charges.  A credit card gives you basically a short term loan, and like a loan you get approved for different amounts and you pay interest on the amounts. Eventually, depending on your credit history, you’ll be able to get a credit limit anywhere between $300 and $25,000.

 When choosing a credit card, consider the following factors:  Annual Percentage Rate (what it costs you per year in interest)  Periodic Rate (interest applied to your monthly payment)  Grace Period (the number of days your purchase is without applied interest)  Annual fees (cost for the privilege of having the card) Having “good credit” as a result of paying your credit card bills on time, can help you get approved for loans, mortgages, car payments, and apartment leases; while bad credit (debt) can make these things almost impossible. Credit Card

Credit cards make it easy to fall into uncontrolled spending. The following is an example of what your bill may look like if you only pay the minimum monthly payment of $60 on a $300 balance with 18% monthly interest: The total interest paid ended up being $535.09, making the total expense $ instead of $300. And it took 14 months to pay off.

Identity Protection  Identity theft can ruin your financial future and make it impossible for you to maintain good credit.  Identity theft will leave you with bad credit that takes months or years to correct; even though you get reimbursed for the thief's bills.  A thief can take over your account by acquiring account information such as account or card numbers and drain your assets.  A thief can also use your personal information to open new accounts and credit lines without your knowledge.

Prevent Theft  Never give out personal information (SS number, account numbers, bank routing numbers, PIN’s) over the phone.  Only use secured web sites when shopping online  Never leave your ID in the car unattended  Do not carry your SS card, birth certificate, or passport unless absolutely necessary  Do not carry cards that show your SS number  Remove your name from phonebooks and reverse directories  Mail bills from the post office  Keep photocopies of your credit cards at home in a safe place  Order your credit report yearly from one of the 3 credit bureaus free of charge  Never reply to s requesting personal financial information  Cross off card information on receipts  Shred receipts, credit card offers, and statements

Questions?