1. Chapter 21 Section 3

2. Banking Services What Banks Do Banks accept deposits to create different types of accounts and then use these deposited funds to make loans.  Checking Accounts- Allows customers to write checks or debit cards.  Savings Accounts- Banks pay interest to customers based on how much money they have deposited.

3.  Certificates of Deposit (CDs)- Requires a saver to deposit his or her funds for a certain period of time. Offer higher interest rates.  Making Loans- Lend money to businesses consumers (to make money). Changes in Banking  The National Banking Act 1863- Federally chartered private banks issued national banknotes or national currency  The Federal Reserve-  The Great Depression- 1930’s, FDR Bank Holiday, est. FDIC

4. Recent Developments  The Savings and Loan Crisis Late 1980s Credit Crisis 2008  The Gramm-Leach-Bliley Act Permits bank holding companies greater freedom to engage in a full range of financial services. Established safeguards to protect customers’ personal financial information.