1. Copyright © Texas Education Agency, 2012. All rights reserved.
Banking Options
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2.  “Copyright and Terms of Service
Copyright © Texas Education Agency. The materials found on this website are copyrighted © and trademarked ™ as the property of the Texas Education Agency and may not be reproduced without the express written permission of the Texas Education Agency, except under the following conditions:
Texas public school districts, charter schools, and Education Service Centers may reproduce and use copies of the Materials and Related Materials for the districts’ and schools’ educational use without obtaining permission from the Texas Education Agency;
2) Residents of the state of Texas may reproduce and use copies of the Materials and Related Materials for individual personal use only without obtaining written permission of the Texas Education Agency;
3) Any portion reproduced must be reproduced in its entirety and remain unedited, unaltered and unchanged in any way;
4) No monetary charge can be made for the reproduced materials or any document containing them; however, a reasonable charge to cover only the cost of reproduction and distribution may be charged.
Private entities or persons located in Texas that are not Texas public school districts or Texas charter schools or any entity, whether public or private, educational or non-educational, located outside the state of Texas MUST obtain written approval from the Texas Education Agency and will be required to enter into a license agreement that may involve the payment of a licensing fee or a royalty fee.
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3. Copyright © Texas Education Agency, 2012. All rights reserved.
Need to Know Terms
Bank
Credit Union
Checking Account
Savings Account
Bank Loan
Principal
Interest
Online Banking
Online Bill Pay
Customer Service Rep
Deposit Slip
Overdraft
Overdraft Protection
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4. Copyright © Texas Education Agency, 2012. All rights reserved.
Bank
A bank is an institution, chartered by the state or federal government that takes deposits and provides credit and other financial services.
Credit Union
A credit union is nonprofit-making money cooperative whose members can borrow from pooled deposits at low interest rates.
Checking Account - an account which allows the holder to write checks [or use debit card] against
deposited funds.
Savings Account - a deposit account at a bank or savings and loan which pays interest, but cannot
be withdrawn by check writing.
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5. Copyright © Texas Education Agency, 2012. All rights reserved.
Bank Loan - a loan consisting of a principal and interest payments, which is provided by a banking
institution to a borrower.
Principal - the amount borrowed or the part of the amount borrowed which remains unpaid.
Interest- the fee charged by a lender to a borrower for the use of borrowed money, usually expressed
as an annual percentage of the principal.
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6. Copyright © Texas Education Agency, 2012. All rights reserved.
Online Banking - a system allowing individuals to perform banking activities at home, via the internet.
Online Bill Pay - allows customers to conduct financial transactions.
Customer Service Representative
A customer service representative is an individual from the bank or credit union that performs business services for their customers.
Deposit Slip
A deposit slip is an itemized slip showing the exact amount of paper money, coins, and checks being deposited to a particular account.
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7. Copyright © Texas Education Agency, 2012. All rights reserved.
Overdraft - the amount by which withdrawals exceed deposits.
Overdraft Protection - a checking account feature in which a person has a line of credit to write
checks for more than the actual account balance. Instead of getting charged about $25 for bouncing a
check, overdraft protection will in effect provide the account holder with an instant loan. The interest
rate will be extremely high, but if it is paid off quickly it is usually much less expensive than the
bounced check fee. Some banks do charge a fee when an account balance falls below zero even if
the account holder has overdraft protection, but it's still significantly less than the bounced check fee.
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8. Copyright © Texas Education Agency, 2012. All rights reserved.
Banks vs Credit Unions
Banks
For-profit institution
Makes loans, pays checks, accepts deposits and offers other banking services
Insured by the FDIC
Credit Unions
Not-for-profit institution
Owned by its members
Offers personal loans and other banking services
Insured by the National Credit Union Administration (NCUA)
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9. Researching Banking Options
You have $500 to deposit into a checking account and it’s up to you to use the Internet to find the best “bargain” bank—the one that offers the most services for the lowest associated fees in the Pearland area. Collect your data and put it in the chart.
Watch out for
these hidden fees:
• Monthly maintenance fees
• Overdraft fees
• Minimum balance requirements
• ATM charges
• Penalties for breaking terms
• Withdrawal limits
Keep your eyes open for
these techsavvy services:
• Online bill payment
• Direct deposit
• Availability to check account balances 24/7
• Text message banking
• Mobile Web apps
• Account alerts
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