BANKING PRODUCTS

CHECKING Non interest bearing accounts FREE CHECKING Direct Deposit – for payroll; convenient for the customer Auto Pay – for utility bills; convenient for the customer Minimum Balance – must maintain a minimum balance at all times; varies depending on institution

CHECKING Non interest bearing accounts REGULAR CHECKING No minimum balance Maintenance fee each month Transaction fee (each check ATM, etc.)

SAVINGS Interest Bearing Accounts PASSBOOK Some require a minimum balance Monthly fee if below required balance Limited transactions – if exceed, fees Interest earned on balance

SAVINGS Interest Bearing Accounts CUSTODIAL ACCOUNTS FOR MINORS No minimum balance until minor turns 18 No limit on transactions Minor is only allowed to make deposits; cannot made withdrawals Custodian can make any transaction on account

SAVINGS Interest Bearing Accounts CHRISTMAS/VACATION CLUB No minimum balance Withdrawal penalties may apply Opened with set date for balance to be forwarded to customer Money saved is used for Christmas shopping, vacation fund, etc.

CERTIFICATE OF DEPOSIT Higher interest rate than savings, but funds are locked in for the term Terms can range from 3 months to years The longer the term, the higher the interest rate Penalties are assessed if CD is closed before maturity date When matured, the customer has a grace period to close out the CD CD automatically roll over into same term, current rate if customer does not close out the CD Funds used to fund loan requests

MONEY MARKET Created by FED after demand deposit accounts were no longer allowed to be interest bearing Interest bearing account Minimum balance requirement Allowed quota of withdrawals and checks each month Fee if account falls below minimum balance Fee if account exceeds allowed transactions Used by customers who want to earn interest on money without typing up availability of funds

MONEY MARKET Created by FED after demand deposit accounts were no longer allowed to be interest bearing Investor Money Market New product that typically earns more than the standard money market account Sometimes slightly higher minimum balance required Interest rate depends on the balance; the higher the balance, the higher the interest rate For customers with large deposits that want easy access to their funds, but still want to earn interest.

DEBIT/BANK CARD with a bank card logo and linked to a checking account balance Use as a credit card – posts to the CHECKING account as a DEBIT card purchase Sign for purchases like a credit card Pulls the purchase amount from the checking account balance Can be used where ever credit card is accepted

DEBIT/BANK CARD with a bank card logo and linked to a checking account balance Use as a Tyme/Debit card – posts to the checking or savings account as a Tyme DEBIT withdrawal. A PIN number must be entered to perform the transaction and posts within 24 hours. Use at any ATM machine to get cash from checking account; usually free when using own bank; fees at other bank ATMs. Can perform balance inquiries on checking balance

DEBIT/BANK CARD with a bank card logo and linked to a checking account balance Use as Point of Sale Purchase – posts to checking account as POS purchase at time of transaction Use as debit at the register for your purchases Enter PIN number Can receive cash back with your purchases

DEBIT/BANK CARD with a bank card logo and linked to a checking account balance Can be issued and revoked at bank’s discretion Bank cannot return purchase as unpaid Some transactions take 3-5 days to post; during that time, other transactions can post to the checking account, draining the balance to cover outstanding transactions THEREFORE, USE WITH CAUTION, RECORDING ALL TRANSACTIONS AT THE TIME THEY ARE MADE.

Other Banking Products CASHIER’S CHECKS Checks that are issued from an account maintained by the bank and are purchased for a fee. Used most often by customers who must pay somebody that will not take a personal check

Other Banking Products CERTIFIED CHECKS Personal checks that have been stamped and approved by an officer of the bank as honorable. Even though the money is in your account, it is only released to the check number that you have certified. Used by customers paying somebody a large dollar amount for services rendered or for a large purchase.

Other Banking Products MONEY ORDERS Checks that are issued by the bank for a fee, but are not necessarily drawn off of that bank. Often used instead of cashier’s checks as they are less expensive to purchase than cashier’s checks.

Other Banking Products TRAVELER’S CHECKS Checks purchased with cash for a fee and issued by American Express, VISA, or Master Card. Checks are guaranteed to be replaced at no cost to customer in the event they are lost or stolen. Used by customers who are traveling because they are safer than caring cash and accepted everywhere.

OTHER BANKING SERVICES STOP PAYMENTS Used in the event that customer issued a check they do not want to pay. Can be 6months or 12 months. Fees for service vary. Reasons include lost, stolen, dissatisfaction, or changed mind.

Other Banking Services AUTOMATIC TRANSFER Used to transfer funds from one account to another. Usually no fee Select date each month for transfer Used to save money, pay car payments, etc.

Other Banking Services OVERDRAFT PROTECTION Used by customers who are concerned about their checking account becoming overdrawn. Another account, usually savings, is linked to the checking account. In event the checking account is overdrawn, the exact amount of the overdraft is pulled from the savings to cover the checking account. This stops any checks from being returned as NSF. Small fee for the service, but much less expensive than NSF fees.