17-2 Financial Services and Electronic Banking Goals Identify the financial services used by consumers Explain types of checking accounts Describe electronic banking activties

Types of Financial Services Savings Services One of the main services that financial instutions offer is accepting money from customers for safekeeping Payment Services Transfer money to others if needed. Types of payments services include checking accounts, debit cards , online payments and automatic withdrawals Lending Services Most people ,businesses, and governments borrow money at some time. Banks offer many types of lending services. These include auto loans ,business loans and mortgages. Electronic Banking Electronic funds transfer (EFT) refers to the use of computers and other technology for banking activties.

Storage of Valuables Investment Advice Management of Trusts Safe deposit boxes: storage of valuables. Safe deposit boxes are well guarded vaults, they are very safe places to keep jewelry and etc. Investment Advice Financial institutions help customers by offering financial advice and investment services. Types of invesments includes government bonds, stocks and mutual funds. Management of Trusts Many banks manage investments on behalf of customers. The money or other property that is turned over for the bank to manage is said to be trust.

Types of Checking Accounts Regular Checking Accounts A (service charge) is a fee bank charges for handling a checking account. This amount varies and is often $300 or higher. A checking account at a credit union may be called a SHARE DRAFT account because the members are called SHAREHOLDERS Interest-earning Checking Accounts Bank will offer a higher rate of interest when a higher balance is kept in the accounts are quite low. Special Checking Accounts Write a few checks each month , consider a ( special checking account). Also called (activity) accounts , banks charge customers about 10 to 20 cents written.

Comparing Checking Accounts Following items are for when selecting a checking account Minimum balance Interest rate earned, if any Monthly service charge Fees for other services such as printing checks and stop payment orders Other restriction

Electronic Banking E-Banking Services Automatic teller machines , cash machines, an automatic teller ( ATM ) Payments at the point of sales, point of sale transaction, merchant accepts a debit card to pay purchases Electronic Payment Options