Activity 1………….Why Do You Need A Bank? Activity 2………The Many Services of a Bank Activity 3…The ABCs of a Chequing Account Activity 4………Opening a Chequing Account Activity 5……………….How to Write a Cheque Activity 6….Maintaining a Chequing Account Activity 7……The ABCs of a Savings Account

Basic Banking Services - Activity 1 ACTIVITY 1 Why Do You Need a Bank? Overview Purposes of banks The differences between banks and credit unions Safety of financial institutions Banks as money management tools 2

CANADA DEPOSIT INSURANCE CORPORATION Established in 1967 A Crown Corporation Protects depositors against certain losses, up to $100,000 per depositor Slide 1 – Canada Deposit Insurance Corporation Lesson Reference: Basic Banking Services, Activity 1 – Overhead 2 3

Basic Banking Services - Activity 2 ACTIVITY 2 The Many Services of a Bank Overview Financial services provided by a bank Bank employees Services that might be of personal benefit The impact of state and federal regulations upon the security of a bank 4

REMITTANCE OPTIONS TO SEND AND RECEIVE MONEY 1. Money Transfer Organizations 2. Bank Transfers 3. Hand Delivery 4. Mail 5. Hawala 6. Post Offices 7. Stored Value Cards Slide 1 – Remittance Options Lesson Reference: Basic Banking Services, Activity 2 - Overhead 1 5

BANK OCCUPATIONS Tellers Personal Bankers Mortgage Lenders Operations Manager Branch Manager Slide 2 – Bank Occupations Lesson Reference: Basic Banking Services, Activity 2 – Overhead 2 6

ELECTRONIC BANK SERVICES Online banking is the fastest growing Internet activity in Canada. Types of Services Bank Cards Automated Services Protect Your Passwords! Slide 3 - Electronic Bank Services Lesson Reference: Basic Banking Services, Activity 2 – Overhead 3 7

BANK CARD TYPES Slide 4 - Bank Card Types Lesson Reference: Basic Banking Services, Activity 2 – Overhead 4 TYPE ABM/Debit Cards Stored Value Cards DESCRIPTION Bank cards that allow for the payment of goods and services to be subtracted directly from a bank deposit account. Can be used with merchants that take major credit cardsknown as point of sale (POS) transactions. Bank cards with preset, limited value. Used to pay for goods and services. Alternative to cash. 8

AUTOMATED BANK SERVICES Direct Deposit Transfers between Accounts Transfers to a Third Party Online Banking Bank by Phone ABM Slide 5 – Automated Bank Services Lesson Reference: Basic Banking Services, Activity 2 – Handout 3 9

REGULATION OF ELECTRONIC BANKING SERVICES Electronic Funds Transfer Code Initiated by the Ministry of Consumer and Corporate Affairs (CCAC) in It protects consumers using any type of electronic banking from loss and protects their privacy. Banks must: Offer consumers a record or receipt for all computer transactions. Investigate errors and report to consumer within ten days of error notification. Customers are responsible to report any errors. Slide 6 - Regulation of Electronic Banking Lesson Reference: Basic Banking Services, Activity 2 – Overhead 5 10

Basic Banking Services - Activity 3 ACTIVITY 3 The ABCs of a Chequing Account Overview Purposes of a chequing account Shopping for and comparing chequing accounts 11

Slide 1 - Chequing Account Terms Lesson Reference: Basic Banking Services, Activity 3 – Handout 1 CHEQUING ACCOUNT TERMS Bank Statement Cancelled Cheque Cheque Cheque Register/Ledger Endorsement Fee Interest Minimum Balance Outstanding Transactions Overdraft Overdraft Protection Payee Reconciling a Bank Statement Transaction Limits 12

Slide 2 - Shopping Around Lesson Reference: Basic Banking Services, Activity 3 - Handout 2 SHOPPING AROUND (THINGS TO ASK ABOUT WHEN OPENING A CHEQUING ACCOUNT) SERVICES Location of bank Location of ABMs Banking hours Minimum balance required Minimum transactions or limits Interest-bearing accounts? Other COSTS Non-primary bank ABM transactions In-branch transaction fees Per-cheque fees Other chequing fees Overdraft protection Printing of cheques 13

Basic Banking Services - Activity 4 ACTIVITY 4 Opening a Chequing Account Overview Chequing Account Application Process The Application Acceptable Forms of ID The Signature Authorization Card 14

Slide 1 – Opening a Chequing Account Lesson Reference: Basic Banking Services, Activity 4 – Handout 1 OPENING A CHEQUING ACCOUNT 15

Slide 2 - Commonly Accepted Forms of ID Lesson Reference: Basic Banking Services, Activity 4 – Handout 2 Primary ID* Drivers Licence issued in Canada Canadian passport Certificate of Canadian Citizenship Permanent Resident card or Citizenship and Immigration Canada Form IMM 1000, IMM 1442, or IMM 5292 Birth certificate issued in Canada Social Insurance card *Financial institutions' ID requirements may differ; check with the institution first before applying for an account. COMMONLY ACCEPTED FORMS OF ID Old Age Security card Certificate of Indian Status Provincial health insurance card (except Ontario, Manitoba, and PEI) Provincial ID card, bearing the individuals photograph and signature, issued by authorities such as Insurance Corporation of British Columbia, Alberta Registries, Service New Brunswick, etc. 16

Slide 3 - Commonly Accepted Forms of ID Lesson Reference: Basic Banking Services, Activity 4 – Handout 2 Secondary ID* Employee photo ID card Canadian University/ College photo ID card Canadian bank or ABM/debit card Canadian credit card Canadian National Institute for the Blind (CNIB) client card Foreign passport *Financial institutions' ID requirements may differ; check with the institution first before applying for an account. COMMONLY ACCEPTED FORMS OF ID 17

Slide 4 – Signature Authorization Card Lesson Reference: Basic Banking Services, Activity 4 – Handout 3 SIGNATURE AUTHORIZATION CARD 18

Basic Banking Services - Activity 5 ACTIVITY 5 How to Write a Cheque 19

Slide 1 - Writing a Cheque Lesson Reference: Basic Banking Services, Activity 5 – Handout 1 WRITING A CHEQUE 20

Basic Banking Services - Activity 6 ACTIVITY 6 Maintaining a Chequing Account Overview Keeping a cheque register Making a deposit into a chequing account Reconciling a bank statement Maintaining a chequing account Avoiding overdrafts 21

KEEPING A CHEQUE REGISTER Slide 1 - Keeping a Cheque Register Lesson Reference: Basic Banking Services, Activity 6 – Handout 1 22

Slide 2 - Making a Deposit - Endorsing a Cheque Lesson Reference: Basic Banking Services, Activity 6 – Handout 1 MAKING A DEPOSIT - ENDORSING A CHEQUE 23 The Back Side of a Cheque

Slide 3 - Making a Deposit - Completing a Deposit Slip Lesson Reference: Basic Banking Services, Activity 6 – Handout 1 MAKING A DEPOSIT - COMPLETING A DEPOSIT SLIP 24

Slide 4 - Reconciling a Bank Statement Lesson Reference: Basic Banking Services, Activity 6 – Handout1 RECONCILING A BANK STATEMENT 25

OVERDRAFTS AND BOUNCED CHEQUES Overdrafts and bounced cheques occur when you complete a financial transaction (e.g., write a cheque) for more than what is available in the account. Your financial institution may pay the amount and charge you a fee, known as an overdraft fee or a nonsufficient funds fee. Tip: Avoid overdraft or non-sufficient funds fees by making a habit of monitoring the balance in your chequing account. Slide 5 – Overdrafts and Bounced Cheques Lesson Reference: Basic Banking Services, Activity 6 – Overhead 1 26

Basic Banking Services - Activity 7 ACTIVITY 7 The ABCs of a Savings Account Overview Purpose of a savings account Shopping for a savings account Applying for a savings account Monthly bank statement checkup 27

REASONS TO SAVE Emergencies Future Purchases Future Investments Slide 1 - Reasons to Save Lesson Reference: Basic Banking Services, Activity 7 – Overhead 1 28

SHOPPING FOR A SAVINGS ACCOUNT Factors to consider: Safety Risk Liquidity Minimum Account Balance Requirements Fees and Service Charges Interest Rate Returns (Earnings) Automatic Transfer Direct Deposit Slide 2 - Shopping for a Savings Account Lesson Reference: Basic Banking Services, Activity 7 – Overhead 2 29

OPENING A SAVINGS ACCOUNT Slide 3 – Opening a Savings Account Lesson Reference: Basic Banking Services, Activity 7 – Overhead 3 30

Slide 4 – Bank Statement Lesson Reference: Basic Banking Services, Activity 7 – Overhead 4 BANK STATEMENT 31