 Safety  Security  Convenience  Cost  Financial Future

 Photo identification, such as driver’s license, state ID card or passport.  Proof of your address, such as a utility bill or lease.  Your social security number for tax purposes.  Parent or guardian if you are 17 and under.

 What is important to you?  What benefits can the financial institution offer?  What are the bank’s fees and policies?  What kind of accessibility do they offer?

 What is the minimum to open an account?  What is the interest rate on the account?  Is there a monthly fee?  Is there any way to avoid monthly fees?  Is there a minimum balance requirement? What happens if my balance falls below the minimum requirement?

BANK:CREDIT UNION:  A for-profit company that is owned stockholders  Examples—U.S. Bank, Bank of America, Wells Fargo, Washington Mutual  A non-profit financial Institution owned by its members  Examples—St. Helens Community Credit Union, Wauna Federal Credit Union

 Investor-Owned  FDIC Insured  May have many locations and/or ATMs  Different fees/penalties associated with different types of accounts

 Member-Owned  NCUA (National Credit Union Administration) insured  Sometimes few locations  May have better rates (than a bank)

 Savings Account  Checking Account

 They have a limit on withdrawals and deposits.  Money you put into savings earns interest (0.1%).  Require a monthly minimum balance.  You can withdrawal money by going to an ATM or directly inside the branch.

 Interest is the cost of lending money. When a bank gives you a loan, you pay interest to them. When you keep your savings in a bank, they pay interest to you.

 Direct deposit  Online banking and bill payment  ATM/Debit card  Checks

 Fees  Overdrafting

 Overdraft protection pays items presented to a customer's account when sufficient funds are not present to cover the amount of the withdrawal.  Overdraft protection allows for these items to be paid as opposed to being returned unpaid, or bouncing.

 Overdraft lines of credit: A contractual relationship where the bank promises to pay overdrafts up to a certain dollar amount. It is similar to a loan, a bank will check your credit and charge interest on the balance.  Linked Accounts: A checking account can be linked to another account, such as a savings or credit card.

 In July, 2010 the Federal Reserve adopted regulations which prohibited overdraft fees unless the bank customer had opted in to overdraft protection. Research by Moebs Services released in February, 2011 showed that as many as 90% of customers had chosen overdraft protection resulting in the projection that United States banks would post record profits from overdraft fees.

 Certificates of Deposits (CDs)  Safe Deposit Boxes

 A CD is a kind of savings account in which you leave your money on deposit for a set period of time in order to earn interest.  The longer the term of your CD, the higher the interest rate will be.  If you withdraw your money before the term ends, you will lose the interest and might have to pay a penalty.

 What is a safe deposit box?  What are some things you might keep in one?

 Copies of Insurance Policies  Birth, marriage, and death certificates  Mortgages and leases  Stock and bond certificates  Valuable jewelry