1. BANKING 101

2. Different Types of Banking Institutions  Commercial Bank  Serves both individuals/businesses  Well located Branches  Broad range of services  FDIC Insured  Savings and Loans  Services better and lower fees than commercial  FDIC insured

3. Banking Institutions  Credit Unions  Lowest fees/loan rates because they are non-profit  Earnings are paid to members  Small and tend to know their clients  Insured by NCUA not FDIC  Mutual Fund/Brokerage Firms  Offer limited banking services  Require larger minimum balances for investments  Not FDIC insured by are privately insured

4. Banking Institutions  Virtual Banks  No “brick or mortar” all online  Con: they may have limited ATM machines so you may pay more in fees  Consumer Finance Company  Specialize in providing loans to consumers who are unable to get a bank loan  Generally charge a very high interest rate

5. Banking Institutions  Check Cashing Outlet  Will cash checks for a fee  Used by people without bank accounts  Offer short-term loans such as advance paycheck loans for a % of the value of your check  Pawnshop  Give you a loan in exchange for something of value  Or takes items on consignment

7. Bank Services  Checking Accounts  An account that handles deposits and withdrawals  Account holder is responsible for keeping track of available funds CHECK BOUNCING Check is written for more than what is available in the acct. High Fees will be charged Possibly lose of the ability to have a checking accts

8. Savings Accounts  Standard Savings:  Withdraw money without penalties  Offers low Interest  Certificates of Deposit (CDs)  Higher interest rates  Need to leave money in for a specific period of time  Money Market Accounts  Higher interest rates  May withdraw money a limited number of times  Requires a minimum balance

9. Debit Cards & Bank Fees  Debit Cards  Similar to a credit card  Money is withdrawn immediately upon use  Bank Fees  Before choosing a bank you need to understand charges up front ATM Fees Debit Card Fees Stop payment fees Check printing fees Overdraft Fees Monthly Checking Acct Fees

10. Bank Vocabulary  Direct Deposit  Interest bearing account  Signature card  Overdrawn  Overdraft protection  Stop payment  Debit Card  Check Register  Endorsement  Bank statement  Canceled checks  Bank Reconciliation  Outstanding Checks