2.  Apply for a charter (State or Federal)  Banking commission reviews application & schedules a hearing.  Commission looks at financial status & character of applicants  Approve application or deny

3.  Research the similarities and differences between obtaining a state charter and a federal charter.

4.  Where would you go to borrow money?  Where would you keep your money?

5. Banks look at:  How much & what types of credit you use (c/c, auto loans, other consumer loans)  Whether or not you have a history of repaying your loans  How promptly you pay your bills

6.  Shop around  1. Does your bank pay depositors a competitive interest rate?  2. Is the bank in a convenient location and are its business hours convenient for you?  3. Is your deposit insured by the FDIC (Federal Deposit Insurance Corporation)?  4. Is the bank a good corporate citizen? Does it invest in your neighborhood?  5. Does your bank provide courteous and efficient service?

7.  Certificate of Deposit or CD  Individual Retirement Account or IRA  Money Market Account

8.  As a depositor, you want interest rates to be high, but as a borrower, you want them to be low.

9.  How much can you afford?  Complete a loan application  How much $$$ you earn  How long you have worked at your current job  How much $$$ you owe on c/c bills, etc.

10.  Until 2004, check goes back to source, then clear or bounce.  Inefficiency  Check 21- electronic transmission

11.  ATM convenience  Direct Depositing  Electronic fund transfers (ETF’s)  Now Virtual banks with no address

12.  Taking out a small loan  Check credit history  Variable interest rates (>20%)  Merchants pay to use Credit cards

13.  Electronic checks  Shows up on monthly balance  No bill  ATM services  Higher charges when stolen

14.  Gift Cards  Phone Cards  Limited used  No protection if stolen or lost

15.  Gold and Silver bars??  Usually cash and coin reserves  Based on full faith and credit of the government

16.  Research a bank failure.  2-3 pages, 12 pt. font, times new roman, 1” margins  Bank name, part of the country, type of bank  Then the causes of the bank failure  Where are the assets for the bank now  Look at exposure and market conditions

17.  Research a bank still around  History  Current state  Rates  Services  Basically tell me everything about the bank