1. Depository Institutions
Take Charge of Your Finances

2. Depository Institutions
Depository Institutions – businesses which offer multiple services in banking and finance
These institutions include:
Banks
Savings and Loans
Credit Unions
They are regulated by the Federal Reserve or other state and federal agencies
This is what the power point presentation will cover to give the students an idea of the topics.

3. Depository Institutions
Commercial Bank
Credit Union
Savings and Loan Association

4. Commercial Bank Primary Characteristics Examples
Usually the largest depository institutions
Considered full-service depository institutions
Checking & savings accounts, loans, credit cards, trusts, safety deposits, foreign exchange, investments and/or financial counseling
Available to a variety of consumers (personal & business)
Examples
Local or regional banks~Pulaski, Eagle or FCB
National banks~Wells Fargo, US Bank, Chase Bank (offer banking and investment service)

5. Commercial Banks Advantages Disadvantages Convenience
Multiple locations locally and/or nationally
Wide variety of services to meet individual needs
Updated on current banking trends (mobile /online banking)
FDIC insured up to $250,000
Federal Government Agency that insures commercial banks and savings & loans against loss
For Profit
Interest rates on interest-bearing accounts may be lower than credit unions
Interest rates on loans may be higher than credit unions
Fees associated with services may be higher than other institutions

6. Credit Union Primary Characteristics
Non-profit cooperative depository institution
Owned by members who share a common bond
live in same community, work, religious based
Examples – First Community, Anheuser-Busch Credit Union, Christian Community

7. Credit Union Advantages Disadvantages
Interest rates on interest-bearing accounts may be higher than commercial banks
Interest rates on loans may be lower than commercial banks
Common affiliation may provide personalization
NCUA insured up to $250,000
Insurance protection through the National Credit Union Association
Fewer locations
Fewer services provided
Slower to stay updated on trends in banking

8. Savings and Loan Association (S&Ls)
Primary Characteristics
It is generally a locally owned and privately managed home financing institution.
It receives individuals' savings and uses these funds to make long-term loans to home purchasers.
It makes loans for the construction, purchase, repair, or refinancing of houses.
It is state or federally chartered.
Examples – American Federal Savings Bank, Ozarks Federal Savings

9. Savings & Loan Associations
Advantages
Disadvantages
Focus on mortgage lending and have experts to assist in the process
Interest rates on interest-bearing accounts may be higher than commercial banks
Interest rates on loans may be lower than commercial banks
FDIC insured up to $250,000
Federal Government Agency that insures commercial banks and savings & loans against loss
Fewer locations
Fewer services provided
May not meet all your banking needs

10. Brokerage Firms Examples – Edwards Jones, Wachovia, Morgan Stanley
Primary Characteristics
Business whose main responsibility is to accept trades between buyers and sellers of stocks, bonds, mutual funds and other investments.
 Brokerage companies are paid commission after the transaction has been successfully completed.
May provide investment advice for wealth planning such as college funds, retirement savings and estate planning
Examples – Edwards Jones, Wachovia, Morgan Stanley

11. Brokerage Firms Advantages Disadvantages
Receive advice on growing wealth
Buys and sells investment options
Experts educated in wealth planning and investing
Not FDIC insured
Pay for service or advice
Provides fewer banking services