1. Deposit Accounts

2. Two Categories: Transaction deposits  An account that allows transactions to occur at any time and in any number. AKA demand deposits Time deposits  Deposits held for or mature at a specified time.

3. Transaction Accounts Demand Deposits- payable on demand whenever the depositor chooses Checking Account - most common form; offers customers quick access to their money and a convenient way to pay bills or transfer funds to other institutions.

4. Checking Accounts Basic- Offer a few simple services for minimal cost Interest bearing checking- Pay interest on the balance deposited in the account, but usually a minimum balance is required

5. Other types of transaction accounts Travelers checks Automatic transfer service

6. Time Deposits Less liquid than check deposits Examples include:  Savings Accounts  Money Market deposit accounts  Certificates of Deposit (CDs)  Various Savings Bonds

7. Savings Accounts Banks usually limit the number of free withdrawals. Statement Savings Accounts:  Provide a quarterly statement detailing account activity, including fees and interest earned.  Lower interest rates than other time deposits because it is the most liquid

8. Money Market Deposit Accounts MMDAs offer a higher rate of interest than savings accounts, but they usually require a higher initial deposit to open an account. FDIC insured up to $250,000 Minimum balance usually required # of Transactions may be restricted

9. Certificates of Deposit CDs are certificates offered by the bank that guarantee payment of a specified interest rate until a designated date in the future (maturity date). Higher the amount and longer time until maturity = higher interest rates Usually higher than money market accounts and savings accounts

10. Assignment In groups of 3, research the various types of transaction accounts and time deposits offered at a bank in your area. Provide details about each type of account Research should be summarized on a PowerPoint, a flyer, or brochure.