1. Financial Institutions Electronic Banking Checking Accounts
Banking and Saving
Financial Institutions
Electronic Banking
Checking Accounts

2. Financial Institutions
Financial Institutions – An organization that provides services related to money.
Commercial Banks
Savings and Loan Associations
Credit Unions

3. Commercial Banks
Commercial Bank – a business owned by investors called stockholders or shareholders.
Primary functions are to receive, transfer, and lend money to individuals, businesses and government.
Often called Full Service Banks
Open checking or savings accounts
Take out a loan
Rent a safe deposit box

4. Commercial Banks
Most commercial banks are either statewide or nationwide.
Bank of America
Wells Fargo
PNC
A charter is the license authorizing a bank to operate.
Federal or State Government regulations

5. Commercial Banks
Community Bank – type of commercial bank that is locally owned and operated.
Offer all standard services as state or national banks.
Often easier to obtain a loan than larger banks.
FDIC (Federal Deposit Insurance Corporation)
Federal government agency
Protect customers by insuring their deposits ($$$)
Insures up to $250,000

6. Savings and Loan Associations (S&L)
Savings and Loan Associations – offer most of the services of Commercial Banks.
Two Types:
Mutual Savings and Loan Associations
Owned and operated for their customers benefit
Stock Savings and Loan Associations
Owned by stockholders.
Operate for a profit.
Insured by the FDIC

7. Credit Unions Members Only Offer checking accounts to its members
Nonprofit Organizations
Operation costs are low…
LOWER interest rates on Loans
HIGHER interest rates on Savings
Insured by the National Credit Union Association(NCUA)

8. Automated Teller Machines (ATMs)
Electronic Banking
Online Banking
Automated Teller Machines (ATMs)
Manage personal bank accounts through the Internet:
Make/Schedule Payments
Transfer Funds
Account Balance
Remote computer terminals
Deposits
Withdrawals
Transfer Funds
Account Balance
Mobile Banking
Manage personal bank transactions through applications on smartphones or tablets.
Alerts & Text Banking
Mobile Banking Websites
Mobile Banking Apps

9. Bank Cards Debit Card (Check Card)
Directly linked to your Checking Account with the bank.
Allows you to make purchases without having cash on you. (POS Terminal)
Can be used at ATM’s (need pin)
Same effect as writing a check
HOWEVER:
Debit Card transactions are instant
Checks clear when deposited.

10. Bank Cards ATM Card Credit Card
Not directly linked to Checking Account
Buy Now, Pay Later….
Directly linked to your Checking Account
Can ONLY be used at ATM’s and not used for POS purchases.

11. Personal Checking Accounts
Checking Accounts – A bank account that allows you to make deposits, write checks and withdrawal money.
Safe place to keep your money.
Purchase goods and services.
Pay bills.
Provides a record of deposits and receipts of payments.

12. Types of Checks
Cashier’s Check – special type of check that the bank guarantees to pay.
Purchased from bank and used to make a purchase to a person or business
Paid with cash or withdrawal from checking account.

13. Types of Checks
Certified Check – personal check from your own checking account that is stamped by the bank to verify its value.
Certified checks are used when the payee does not accept personal checks.
Usually charge a small fee to certify.

14. Types of Checks
Money Order – payment for a specific amount of money payable to a specific payee.
Do not contain personal information
May be purchased if you do not have a checking account.
Sold mainly in Financial Institutions or US Post Offices

15. Writing Checks A. Check Number C. Authorized Check Holder
D. Today’s Date B.
Bank’s
Identification
Number
E. Payee’s Name
G. Dollar Amount in Words
F. Dollar amount in numbers
J. Reason for Check
H. Signature of Check Holder
I. Bank Account Number
K. Routing Number

16. Writing Checks

17. Deposit Slip Front (Dollars) (Cents)
This is any cash you take home instead of deposit.

18. Deposit Slip Back

19. Checking Account Register

20. Writing Checks A. C. D. B. E. G. F. J. H. K. I.