1. FINANCIAL SERVICES AND INSTITUTIONS

2. Financial Services  Services offered by banks and other financial institutions 1. Savings and Investment 2. Payment Services 3. Borrowing

3. Services for Short Term Needs  Daily cash needs  Check Cashing  Automated teller machines (ATM’s)  Prepaid cards  Savings  Regular savings account  Money market account

4. Services for Short Term Needs  Checking  Regular checking account  Online payments, payment by phone  Automatic preauthorized payments  Cashier’s checks, Money orders  Credit Cards

5. Services for Long Term Needs  Savings  Certificates of Deposit (CD’s)  U.S. Savings Bonds  Credit Services  Loans for cars, education, etc.  Home equity loans  Mortgages

6. Services for Long Term Needs  Investment Services  Mutual funds  Financial advice  Other Services  Tax preparation  Insurance

7. Types of Financial Institutions  Deposit Institutions  Commercial Banks  Savings and Loans  Mutual Savings Banks  Credit Unions

8. Types of Financial Institutions  Non-Deposit Institutions  Life Insurance Companies  Investment Companies  Finance Companies  Others?

9. Electronic Banking / Payment  Direct deposit  Automatic payments  Online payments  ATM’s  Fees  Debit cards  Cash card and point of sale  Overdraft “protection”  Prepaid cards and gift cards  Electronic cash

10. Savings Plans Type of AccountBenefitsDrawbacks Regular Savings Account- Low minimum balance - Ease of withdrawal - Insured - Low rate of return Certificates of Deposit (CD’s) - Guaranteed rate of return - Insured - Penalty for early withdrawal - Minimum deposit Money Market Account- Good rate of return - Some check writing - Insured - Minimum balance - Penalties if below minimum U.S. Savings Bond- Low minimum deposit - Guaranteed by gov’t - No state/local taxes - Lower rate of return if cashed in early

11. Truth in Savings Law  Financial institutions must provide:  Fees on deposit accounts  Interest rates  Annual percentage yield  Terms and conditions

12. Checking Accounts  Regular checking accounts  Interest earning checking accounts  Special types  Student  Activity accounts

13. Checking Accounts  Key Factors  Restrictions Minimum balance? Maximum number of transactions or checks  Fees and charges Monthly service charge Check printing Overdraft protection Stop payment order  Interest

14. Banking Vocabulary Annual Percentage Yield (APY) Bad check Cashier’s check CDs Certified check Commercial bank Credit union Demand deposits Debit card ATM transaction fee FDIC Joint account Money-market account Money order Sweep account

15. Writing Checks Routing number Account number Your name

16. Cashing Checks  Endorsements  Standard endorsement  Restrictive endorsement – “For Deposit Only”  Tips  Do not endorse until ready to cash  Use a pen  Use exact same name as on front  Give time for check to clear

17. Check Writing Simulation  You have $1,000 to spend – do not spend more  Buy the items you wish (3 total) by writing checks  Be sure to put your name at the top of the check  Keep an active register with current and final balances  Hand in the sheet as a toll booth pass– be sure your name is on it  Scoring  Checks properly written (7 pts)  Register properly written (5 pts)  Balances correct (3 pts)