Stock Market Analysis and Personal Finance Mr. Bernstein Sources of Consumer Credit, pp March 12, 2013

Stock Market Analysis & Personal Finance Mr. Bernstein Sources of Consumer Credit Commercial Banks Consumer Finance Companies Credit Unions Savings and Loans (“Thrifts”) Life Insurance Companies 2

Stock Market Analysis & Personal Finance Mr. Bernstein Sources of Consumer Credit Commercial Banks Personal Loans Auto Loans or other Collaterialized Loans Credit Cards Consumer Finance Companies Credit Unions Savings and Loans (“Thrifts”) Life Insurance Companies 3

Stock Market Analysis & Personal Finance Mr. Bernstein Sources of Consumer Credit Commercial Banks Consumer Finance Companies Little Credit History Needed Will Loan up to 100% of purchase value Quick Approval Often Expensive Credit Unions Savings and Loans (“Thrifts”) Life Insurance Companies 4

Stock Market Analysis & Personal Finance Mr. Bernstein Sources of Consumer Credit Commercial Banks Consumer Finance Companies Credit Unions Members Only Payroll Deduction Plans possible Non-profit Savings and Loans (“Thrifts”) Life Insurance Companies 5

Stock Market Analysis & Personal Finance Mr. Bernstein Sources of Consumer Credit Commercial Banks Consumer Finance Companies Credit Unions Savings and Loans (“Thrifts”) Home Improvement Second Mortgage Loans (Home Equity Loans) At one time were considered local Real Estate experts Life Insurance Companies 6

Stock Market Analysis & Personal Finance Mr. Bernstein Sources of Consumer Credit Commercial Banks Consumer Finance Companies Credit Unions Savings and Loans (“Thrifts”) Life Insurance Companies Borrow against cash value of policy Balance outstanding deducted from death benefits 7

Stock Market Analysis & Personal Finance Mr. Bernstein Credit Cards “Collateralized Credit Card” builds credit rating Watch the “gotchas”: Grace period for late payment without finance fee Annual fee can be $50-$500 Transaction fees Know how payments can be made without delays High interest rates are common…so… Plan to pay your credit card balance every month 8

Stock Market Analysis & Personal Finance Mr. Bernstein Types of Personal Banking Financial Services Checking Accounts Savings Accounts CDs Debit Cards Credit Cards Direct Deposit Overdraft Protection Bill Paying ATMs 9

Stock Market Analysis & Personal Finance Mr. Bernstein Other Financial Services offered by Banks* Personal and Auto Loans Home Mortgages and Home Equity Loans* Investment and Retirement Products* Home, Life and Auto Insurance* *These products and services are typically offered by another division of the bank or even an outside partner. Your local branch office is essentially acting as a sales conduit, making a helpful introduction to another entity. 10

Stock Market Analysis & Personal Finance Mr. Bernstein Why do banks offer other Services? 11

Stock Market Analysis & Personal Finance Mr. Bernstein CD rates, present 12

Stock Market Analysis & Personal Finance Mr. Bernstein CD rates, present 13

Stock Market Analysis & Personal Finance Mr. Bernstein Fed Funds Rate present 14

Stock Market Analysis & Personal Finance Mr. Bernstein Interest Rates for Savers Why are rates currently so low? Is it reasonable to assume rates likely to remain low throughout your lifetime? What is the relationship between inflation and interest rates? 15