Services Provided by Banks

Lesson Objectives Describe how banks provide ways for individuals to use their own money Explain how banks provide additional money for individuals to use List services offered by banks

Key Vocabulary Certificate of Deposit Checking Account Commercial Bank Credit Card Credit Union Debit Card Foreign Exchange Home equity loan IRA Line of credit Money market account Mortgage Safe deposit box Savings account Savings bank

Services Provided by Banks Ways for individuals to use their own money Ways for individuals to get additional money Ways for individuals to grow their money Other miscellaneous services

Services Provided by Banks Assign one person to record the responses on the paper You will only have a few minutes to write down the terms that you can think of When you finish writing on all of the charts then go back to the original chart and choose the top 3 terms that are most relevant, important, and fundamental to the topic

Services Provided by Banks Savings accounts, checking accounts, ATM/debit cards, etc. Car loans, student loans, home mortgages, credit cards, etc. Investments and wealth management services, etc. safe deposit boxes, currency exchange, money transfers, cashier’s checks, etc.

Services Provided by Banks Banks offer a variety of different services that can generally be classified into the four ways that are referred to on the charts

Banks and Their Services Download- Reading: Common Bank Services Download- Scenarios Worksheet: Services Wanted from Banks You must match each service wanted with what the bank offers Write your own scenario that incorporates a service that someone could need from a bank with the service provided by the bank

Comparing the Cost of Bank Services You will choose a bank to study and research the services that are offered and the cost of those services You will then compare and contrast their findings with other groups

Comparing the Cost of Bank Services Although many banks may look alike, there is actually a variety of different types of banks You are about to investigate the services of one of the following types of banks Most banks can be placed into the following categories: Commercial banks were originally created to meet the needs of businesses. Today, most banks are commercial banks. Commercial banks offer a variety of services including checking accounts, savings accounts, and loans. Savings banks are similar to commercial banks except that they mostly offer savings accounts and loans so people can buy homes. The most important purpose of these institutions is to make mortgage loans on residential property. Credit unions were started to help people borrow money. Credit unions are cooperative financial institutions that are privately owned and controlled by their members who generally share a common bond (for example, postal workers or teachers). Credit unions offer many of the same services as commercial banks

Comparing the Cost of Bank Services Get into groups of 2 to complete the assignment Download- Instructions: Becoming a Smart Consumer of Bank Services Download- Worksheet: Costs and Benefits of Bank Services Use this worksheet to record your bank’s services and your bank’s costs to the consumer

Cost and Benefits of Bank Service Companies Now that you have completed the research on your bank, find a person who researched another bank Refer to Worksheet: Costs and Benefits of Bank Services to compare and contrast between the banks Download- Venn Diagram: Comparison of Bank Services

Cost and Benefits of Bank Service Companies Which bank would you most likely choose for yourself?

Comparing Bank Services Download- Assignment: Comparing Bank Services You will become smart consumers by using their research to select which financial institution would be the best choice for you Download- Example: Comparing Banks How does this example meet the requirements for this assignment?

Services Provided by Banks Now after we have gone over all the services a bank can offer, can we add anything to our charts How do financial services companies help personal customers use, borrow, and grow money?

Services Provided by Banks Although banks serve similar functions for both individuals and society, different types of banks offer different types of services Being knowledgeable about these services, and of the specific costs and benefits that are associated with the services, can help you find the bank that best suits their specific needs, and save a lot of money!

Enrichment Create a directory of local banks in their area.’ Include commercial banks, retail banks, and credit unions.

Enrichment Debate whether it is beneficial to society for banks to sell investment products.

Cross-Curricular Integration Research an international bank and compare its products and services with a local bank Use a Venn diagram or another type of visual aid to share the information with the rest of the class.

Cross-Curricular Integration Write a short essay based on banking in the future What types of services and products will be available in the year 2058? What will banking be like for the average person?