P E R S O N A L F I N A N C I A L M A N A G E M E N T P R O G R A M Banking and Financial Services

B A N K I N G A N D F I N A N C I A L S E R V I C E S2 Credit Unions and Banks Credit Unions: Not for Profit Banks: For Profit Credit Unions: Not for Profit Banks: For Profit

B A N K I N G A N D F I N A N C I A L S E R V I C E S3 Savings and Checking Accounts Individual – Only one persons name is on the account, only one may write checks Joint – More than one persons name is on the account, both may write checks Interest or Non-Interest – Some accounts pay interest on the balance Individual – Only one persons name is on the account, only one may write checks Joint – More than one persons name is on the account, both may write checks Interest or Non-Interest – Some accounts pay interest on the balance

B A N K I N G A N D F I N A N C I A L S E R V I C E S4 What Is a Check? A guarantee of the money it represents A legal document A widely accepted form of payment Questions to ask: – Minimum Balance? – Monthly Service Fee? – Per Check Fee? – ATM Fees? – Interest? – Overdraft Protection? – Is the account insured?

B A N K I N G A N D F I N A N C I A L S E R V I C E S5 Check, Debit and ATM Cards Use for Withdrawals, Deposits, Inquiries and Purchases Looks like a credit card Money comes right out of your accounts Can be used like a check Use PIN, Personal Identification Number May be fees, especially with ATM cards Use for Withdrawals, Deposits, Inquiries and Purchases Looks like a credit card Money comes right out of your accounts Can be used like a check Use PIN, Personal Identification Number May be fees, especially with ATM cards

B A N K I N G A N D F I N A N C I A L S E R V I C E S6 Protect Your Plastic! Limit ATM use to machines enclosed and well lit Go to the ATM with friends at popular times Sign the back of your ATM card right away Memorize your PIN Dont let anyone watch you enter PIN Put money away safely Keep track of all of your transactions Limit ATM use to machines enclosed and well lit Go to the ATM with friends at popular times Sign the back of your ATM card right away Memorize your PIN Dont let anyone watch you enter PIN Put money away safely Keep track of all of your transactions

B A N K I N G A N D F I N A N C I A L S E R V I C E S7 Other Banking Products and Services Credit Cards Loans (Personal, Auto, Home Mortgage) Life Insurance and Investments (NOT insured!) Money Orders, Cashiers Checks, Notary Services, Wire Transfers, Safety Deposit Boxes Education Online Banking Credit Cards Loans (Personal, Auto, Home Mortgage) Life Insurance and Investments (NOT insured!) Money Orders, Cashiers Checks, Notary Services, Wire Transfers, Safety Deposit Boxes Education Online Banking

B A N K I N G A N D F I N A N C I A L S E R V I C E S8 Online Banking Consider: Availability Delays Fees Security Consider: Availability Delays Fees Security Features Include: Account access and transfers Apply for and/or purchase products or services On-line bill paying services Links to personal finance software

B A N K I N G A N D F I N A N C I A L S E R V I C E S9 Finding the Best Fit Convenience Range of Products and Services Minimum Deposit Requirements Limits on Withdrawals Interest Insurance Convenience Range of Products and Services Minimum Deposit Requirements Limits on Withdrawals Interest Insurance

B A N K I N G A N D F I N A N C I A L S E R V I C E S10 The Cost of Financial Services Service charges Check order costs Costs per check Overdraft Protection Service charges Check order costs Costs per check Overdraft Protection

B A N K I N G A N D F I N A N C I A L S E R V I C E S11 Fees Non-sufficient fund check fees (NSF) Returned check fees Monthly service fees Fees for research assistance ATM use fees STOP payment fees Non-sufficient fund check fees (NSF) Returned check fees Monthly service fees Fees for research assistance ATM use fees STOP payment fees

B A N K I N G A N D F I N A N C I A L S E R V I C E S12 Managing Your Money Controlling the Cash Flow – On-line Banking Use a system to track transactions Record Confirmation Numbers – ATMs Keep track of all transactions in your register Money taken out of the ATM DOES affect your accounts! Keep your receipts until transactions clear Controlling the Cash Flow – On-line Banking Use a system to track transactions Record Confirmation Numbers – ATMs Keep track of all transactions in your register Money taken out of the ATM DOES affect your accounts! Keep your receipts until transactions clear

B A N K I N G A N D F I N A N C I A L S E R V I C E S13 Keeping the Checkbook in Check…Coming Attractions Completing the Check Common Errors Completing the Register Expensive Mistakes Completing the Deposit Slip Types of Endorsements Funds Availability Clearing Procedures Completing the Check Common Errors Completing the Register Expensive Mistakes Completing the Deposit Slip Types of Endorsements Funds Availability Clearing Procedures

B A N K I N G A N D F I N A N C I A L S E R V I C E S14 Sample Check

B A N K I N G A N D F I N A N C I A L S E R V I C E S15 Check Writing Errors Illegibility Empty spaces Only filling in numbers Not signing check Not signing name as it appears Illegibility Empty spaces Only filling in numbers Not signing check Not signing name as it appears

B A N K I N G A N D F I N A N C I A L S E R V I C E S16 Check Writing Errors Not lining through after dollar amount Initializing errors – Void the check! Writing in pencil/erasable ink Not lining through after dollar amount Initializing errors – Void the check! Writing in pencil/erasable ink

B A N K I N G A N D F I N A N C I A L S E R V I C E S17 Check Register II

B A N K I N G A N D F I N A N C I A L S E R V I C E S18 Expensive Mistakes Not subtracting ATM fees or service charges Post-dating checks Splitting check pads between joint account holders Writing checks before money is in the bank Not subtracting ATM fees or service charges Post-dating checks Splitting check pads between joint account holders Writing checks before money is in the bank

B A N K I N G A N D F I N A N C I A L S E R V I C E S19 Expensive Mistakes Not balancing monthly statement Not recording checks written in the register Addition/subtraction errors Not subtracting automatic deductions e.g., loan payments, insurance premiums, car payments, etc. Not balancing monthly statement Not recording checks written in the register Addition/subtraction errors Not subtracting automatic deductions e.g., loan payments, insurance premiums, car payments, etc.

B A N K I N G A N D F I N A N C I A L S E R V I C E S20 Deposit Slip (front)

B A N K I N G A N D F I N A N C I A L S E R V I C E S21 Deposit Slip (back)

B A N K I N G A N D F I N A N C I A L S E R V I C E S22 Endorsements Blank – Jane R. Smith Restrictive – for deposit only Jane R. Smith Special – Jane R. Smith Pay to the order of Robert L. Jones Blank – Jane R. Smith Restrictive – for deposit only Jane R. Smith Special – Jane R. Smith Pay to the order of Robert L. Jones

B A N K I N G A N D F I N A N C I A L S E R V I C E S23 Funds Availability First business day after deposit – Cash – First $100 of check – Government, cashier, and certified checks – Same bank checks First business day after deposit – Cash – First $100 of check – Government, cashier, and certified checks – Same bank checks

B A N K I N G A N D F I N A N C I A L S E R V I C E S24 Funds Availability Second business day after deposit – Local bank checks Fifth business day after deposit – Out-of-town checks Second business day after deposit – Local bank checks Fifth business day after deposit – Out-of-town checks

B A N K I N G A N D F I N A N C I A L S E R V I C E S25 Clearing Procedures: Check 21 Bank clears checks electronically Banks not required to return paper checks to you Banks use Substitute Checks Less Float Time Bank clears checks electronically Banks not required to return paper checks to you Banks use Substitute Checks Less Float Time

B A N K I N G A N D F I N A N C I A L S E R V I C E S26 Alternatives to Checking Accounts Debit cards Money orders to pay bills Payday loans Disadvantages are additional costs Debit cards Money orders to pay bills Payday loans Disadvantages are additional costs

B A N K I N G A N D F I N A N C I A L S E R V I C E S27 Couples & Money Management Who has primary responsibility? Separate checking accounts Splitting check pads Do what works Who has primary responsibility? Separate checking accounts Splitting check pads Do what works

B A N K I N G A N D F I N A N C I A L S E R V I C E S28 Changing Financial Institutions Most retailers prefer or require local accounts Open up new account after you transfer Transfer DDS and automatic withdrawals Most retailers prefer or require local accounts Open up new account after you transfer Transfer DDS and automatic withdrawals

B A N K I N G A N D F I N A N C I A L S E R V I C E S29 Consequences of Checking Account Mismanagement Embarrassment Hefty service charges Inability to have a checking account due to unsatisfactory history Embarrassment Hefty service charges Inability to have a checking account due to unsatisfactory history

B A N K I N G A N D F I N A N C I A L S E R V I C E S30 Military Consequences Punishable under UCMJ Articles 123A & 134 – Maximum punishment ranging from dishonorable discharge to five years confinement at hard labor Other than Honorable (OTH) discharge A consideration when recommending for retention, duty assignments, and security clearances Punishable under UCMJ Articles 123A & 134 – Maximum punishment ranging from dishonorable discharge to five years confinement at hard labor Other than Honorable (OTH) discharge A consideration when recommending for retention, duty assignments, and security clearances

B A N K I N G A N D F I N A N C I A L S E R V I C E S31 Impact on Credit Rating May be reported to Credit Reporting Agency (CRA) Impact on future credit purchases May be reported to Credit Reporting Agency (CRA) Impact on future credit purchases

B A N K I N G A N D F I N A N C I A L S E R V I C E S32 Where to Complain Customer service representative Branch manager Bank president Federal and State Resources Customer service representative Branch manager Bank president Federal and State Resources Financial Services Resource handout

B A N K I N G A N D F I N A N C I A L S E R V I C E S33 Other Sources of Help Command Financial Specialist Fleet and Family Support Center Navy Legal Services Office Armed Forces Disciplinary Control Board Navy-Marine Corps Relief Society Command Financial Specialist Fleet and Family Support Center Navy Legal Services Office Armed Forces Disciplinary Control Board Navy-Marine Corps Relief Society

B A N K I N G A N D F I N A N C I A L S E R V I C E S34 Summary Credit Unions and Banks Products and Services ATM/Debit/Check Card Management Checking Account Management Sources of Help Credit Unions and Banks Products and Services ATM/Debit/Check Card Management Checking Account Management Sources of Help

B A N K I N G A N D F I N A N C I A L S E R V I C E S35 Print your Certificate Click on the following link to add your name to the certificate and print it: Banking and Financial Services Click on the following link to add your name to the certificate and print it: Banking and Financial Services