1. Where should I put my money?
Checking?
Under the mattress?
Savings?
An introduction to banking.

2. Banking vocabulary Source: PDESAS.org, Wikipedia
balance - the current amount in your account ($$$)
bounce: a check cannot be cashed or deposited because there is not enough money in the account it was drawn on
check - a piece of paper (usually) that orders payment of money
check register - where you record all account transactions
checking account - a place where you can deposit and withdraw money
credit - money that goes into your account
debit - money that comes out of your account
deposit - money put into your account
depository institution – financial institution that accepts deposits from consumers
Direct deposit – earnings are deposited into a checking or savings account lieu of a paper check
endorse - sign your name on the back of a check
Source: PDESAS.org, Wikipedia

3. Banking Vocabulary memo line - record what the check was written for
mutual fund - investment portfolio shared with others
outstanding - transaction not appearing on your bank statement
overdraft - when you write a check with too little money in the bank
reconcile - you and the bank agree on how much money is in your account
routing number - identifies the bank where you have your account
signature card – account holders’ signatures kept on file to verify signatures
withdrawal - money taken out of your account
Sources: PDESAS.org, Wikipedia

4. Depository Institutions
AKA: Bank
Primary source of funding is savings deposits.
Banks lend money to consumers (people) and commercial customers (businesses) and make investments in real estate, treasury bills, and more.
Banks have to give depositors back their money when they ask for it.
Uses that money to generate profits through loans and investments
Source:

5. Depository Institutions
Includes:
Commercial banks
Savings banks
Savings and loan associations
Credit unions
Differences:
Customers and products
Regulation
For-profit or non-profit
Note: Check cashing businesses are financial institutions but are not depository institutions. More at: check cashing.com
Source:

6. Depository Institutions
Someone deposits money
Bank makes loans and other investments with money deposited
Bank profits pay interest to depositors and dividends to investors
Bank makes money on investments and interest on loans

7. Depository Institutions
Anytime you give your money to someone with the expectation that the person will hold it for you and give it back when you request it, you’re either dealing with a depository institution or acting very foolishly.  -- Dummies.com

8. Commercial Banks
Main purpose: financial services for businesses; make a profit for their shareholders
Largest and most diverse depository institutions
Greater emphasis on business customers
Regulation
State supervision-- OR --
Federally by the Office of the Comptroller of the Currency (Treasury Department).
Source: and

9. Savings Institutions AKA: Thrift institutions
Main customer: local community.
Keep it local by using local depositors’ money to make loans to local customers – individuals and small businesses.
Include:
Savings and Loans – biggest lender of consumer mortgages
Savings Banks

10. Credit Unions Main purpose: consumer deposit and loan services
Non-profit
Any money made is returned to depositors through higher returns on savings and lower interest rates on loans
Financial cooperatives – owned by members of some group (members of a union, religious group, etc.)
Accounts are called share accounts; deposits made are purchases of shares (partial ownership)
Credit Union earnings returned to members in the form of dividends
Source: wdfi.org

11. Credit Union Promo

12. Federal Deposit Insurance Corporation (FDIC)
What is the FDIC?
An independent agency of the U.S. government that insures depoits.
Since the FDIC's creation in 1933, no depositor has ever lost even one penny of FDIC-insured deposits.
Insures deposits up to $250,000
More information at FDIC.gov

13. National Credit Union Administration (NCUA)
Insurance deposits made at credit unions
Insures deposits to $250,000

14. Money Talks
Let’s look at the “Money Talks” Newsletter for an introduction to checking accounts.