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Activity 1………….Why Do You Need A Bank? Activity 2………The Many Services of a Bank Activity 3….The ABCs of a Checking Account Activity 4……….Opening a Checking.

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Presentation on theme: "Activity 1………….Why Do You Need A Bank? Activity 2………The Many Services of a Bank Activity 3….The ABCs of a Checking Account Activity 4……….Opening a Checking."— Presentation transcript:

1 Activity 1………….Why Do You Need A Bank? Activity 2………The Many Services of a Bank Activity 3….The ABCs of a Checking Account Activity 4……….Opening a Checking Account Activity 5………………….How to Write a Check Activity 6…..Maintaining a Checking Account Activity 7……The ABCs of a Savings Account

2 Basic Banking Services - Activity 1 ACTIVITY 1 Why Do You Need a Bank? Overview Purposes of banks The differences between banks and credit unions Safety of financial institutions Banks as money management tools The Earned Income Tax Credit 2

3 SAFETY OF FINANCIAL INSTITUTIONS COMMERCIAL BANKS CREDIT UNIONS Slide 1 – Safety of Financial Institutions Lesson Reference: Basic Banking Services, Activity 1 – Overhead 3 3

4 THE EARNED INCOME TAX CREDIT The Earned Income Tax Credit (EITC) is a federal income tax credit for low- income workers. The credit reduces the amount of tax an individual owes, and may be returned to the taxpayer in the form of a refund. Some states offer additional forms of EITC. Eligible workers must have an annual income and investment income that falls below a certain level. In tax year 2005, for example, if you are married, have two or more children, and are filing your taxes jointly, your combined annual income must not exceed $37,263. You must have a Social Security Number to receive the EITC. In tax year 2005, a family with two or more children could receive up to a $4,400 refund through the EITC.* Slide 2 – EITC Lesson Reference: Basic Banking Services, Activity 1 – Handout 2 4

5 Basic Banking Services - Activity 2 ACTIVITY 2 The Many Services of a Bank Overview Financial services provided by a bank Bank employees Services that might be of personal benefit The impact of state and federal regulations upon the security of a bank 5

6 REMITTANCE OPTIONS TO SEND AND RECEIVE MONEY 1. Money Transfer Organizations 2. Bank Transfers 3. Hand Delivery 4. Mail 5. Hawala 6. Post Offices 7. Stored Value Cards Slide 1 – Remittance Options Lesson Reference: Basic Banking Services, Activity 2 - Overhead 1 6

7 BANK OCCUPATIONS Tellers Platform Bankers Mortgage Lenders Operations Manager Branch Manager Slide 2 – Bank Occupations Lesson Reference: Basic Banking Services, Activity 2 – Overhead 2 7

8 ELECTRONIC BANK SERVICES Online banking is the fastest growing Internet activity in the U.S. Types of Services Bank Cards Automated Services Protect Your Passwords! Slide 3 - Electronic Bank Services Lesson Reference: Basic Banking Services, Activity 2 – Overhead 3 8

9 BANK CARD TYPES Slide 4 - Bank Card Types Lesson Reference: Basic Banking Services, Activity 2 – Overhead 4 TYPE Check Cards or ATM/Debit Cards Stored Value Cards DESCRIPTION Bank cards that allow for the payment of goods and services to be subtracted directly from a bank deposit account. Can be used with merchants that take major credit cardsknown as point of sale (POS) transactions. Bank cards with preset, limited value. Used to pay for goods and services. Alternative to cash. 9

10 ELECTRONIC BANK SERVICES Direct Deposit Transfers between Accounts Transfers to a Third Party Online Banking Bank by Phone ATM Slide 5 – Electronic Bank Services Lesson Reference: Basic Banking Services, Activity 2 – Handout 3 10

11 REGULATION OF ELECTRONIC BANKING SERVICES Electronic Fund Transfer Act Protects consumers using any type of electronic banking from loss and protects their privacy. Banks must: Offer consumers a record or receipt for all computer transactions. Investigate errors and report to consumer within ten days of error notification. Customers are responsible to report any errors. Slide 6 - Regulation of Electronic Banking Lesson Reference: Basic Banking Services, Activity 2 – Overhead 5 11

12 Basic Banking Services - Activity 3 ACTIVITY 3 The ABCs of a Checking Account Overview Purposes of a checking account Shopping for and comparing checking accounts 12

13 Slide 1 - Checking Account Terms Lesson Reference: Basic Banking Services, Activity 3 – Handout 1 CHECKING ACCOUNT TERMS Bank Statement Cancelled Check Check Check Register/Ledger Endorsement Fee Interest Minimum Balance Outstanding Transactions Overdraft Overdraft Protection Payee Reconciling a Bank Statement Transaction Limits 13

14 Slide 2 - Shopping Around Lesson Reference: Basic Banking Services, Activity 3 - Handout 2 SHOPPING AROUND (THINGS TO ASK ABOUT WHEN OPENING A CHECKING ACCOUNT) SERVICES Location of bank Location of ATMs Banking hours Minimum balance required Minimum transactions or limits Interest-bearing accounts? Other COSTS Non-primary bank ATM transactions In-branch transaction fees Per-check fees Other checking fees Overdraft protection Printing of checks 14

15 Basic Banking Services - Activity 4 ACTIVITY 4 Opening a Checking Account Overview Checking Account Application Process The Application Acceptable Forms of ID The Signature Authorization Card The PATRIOT Act 15

16 Slide 1 – Opening a Checking Account Lesson Reference: Basic Banking Services, Activity 4 – Handout 1 OPENING A CHECKING ACCOUNT 16

17 Slide 2 - Commonly Accepted Forms of ID Lesson Reference: Basic Banking Services, Activity 4 – Handout 2 Primary ID* Photo Drivers License issued within the U.S. or Canada State Non-Driver Photo ID Photo Learners Permit Government Photo ID U.S. Passport Non-U.S. Passport Resident Registration Card Mexican Consular ID (Matricula Consular) *Financial institutions' ID requirements may differ; check with the institution first before applying for an account. COMMONLY ACCEPTED FORMS OF ID Naturalization Certificate Employee Photo ID (from a recognizable employer) Photo Trade License (barber, plumber, electrician, etc.) Student Photo ID (college/trade school) Medicare Card (must be 65 or older) 17

18 Slide 3 - Commonly Accepted Forms of ID Lesson Reference: Basic Banking Services, Activity 4 – Handout 2 Secondary ID* Pay Stub Car Registration Mortgage Statement Letter of Introduction from Bank, Embassy, or well-known Employer Welfare Card Supplemental Health Insurance Card *Financial institutions' ID requirements may differ; check with the institution first before applying for an account. COMMONLY ACCEPTED FORMS OF ID Foreign Drivers License State/Local Gun Permit Utility Bill (Name and address of individual account should be listed) Current Bank Statement National Credit Card Bank-issued Debit or Check Card 18

19 THE PATRIOT ACT Congress passed the PATRIOT Act in response to the terrorist attacks of September 11, 2001. Financial institutions are now required to collect certain information when a new account is opened. Slide 4 – The PATRIOT Act Lesson Reference: Basic Banking Services, Activity 4 – Overhead 1 1. The customer must provide identification that includes name, date of birth, address, and identification number. 2. The institution must maintain a copy of the information used to verify the persons identity. 3.The institution must determine whether the applicant appears on the lists of known or suspected terrorists or terrorist organizations. 19

20 Slide 5 – Signature Authorization Card Lesson Reference: Basic Banking Services, Activity 4 – Handout 3 SIGNATURE AUTHORIZATION CARD 20

21 Basic Banking Services - Activity 5 ACTIVITY 5 How to Write a Check 21

22 Slide 1 - Writing a Check Lesson Reference: Basic Banking Services, Activity 5 – Handout 1 WRITING A CHECK 22

23 Basic Banking Services - Activity 6 ACTIVITY 6 Maintaining a Checking Account Overview Check 21 Keeping a check register Making a deposit into a checking account Reconciling a bank statement Maintaining a checking account Avoiding Overdrafts 23

24 Slide 1 – Check 21 Lesson Reference: Basic Banking Services, Activity 6 – Handout 1 CHECK 21 Check 21 is a federal law that helps banks handle more checks electronically and that makes check processing faster and more efficient. Under this law, a check deposited in a bank is typically delivered overnight to the paying bank and deducted from the checkwriters account on the next business day. Money may be deducted from your checking account almost immediately. 24

25 KEEPING A CHECK REGISTER Slide 2 - Keeping a Check Register Lesson Reference: Basic Banking Services, Activity 6 – Handout 2 25

26 Slide 3 - Making a Deposit - Endorsing a Check Lesson Reference: Basic Banking Services, Activity 6 – Handout 2 MAKING A DEPOSIT - ENDORSING A CHECK Restrictive Endorsement (most secure) Blank Endorsement (least secure) Endorsement to a third party The Back Side of a Check 26

27 Slide 4 - Making a Deposit - Completing a Deposit Slip Lesson Reference: Basic Banking Services, Activity 6 – Handout 2 MAKING A DEPOSIT - COMPLETING A DEPOSIT SLIP 27

28 Slide 5 - Reconciling a Bank Statement Lesson Reference: Basic Banking Services, Activity 6 – Handout 2 RECONCILING A BANK STATEMENT 28

29 OVERDRAFTS AND BOUNCED CHECKS Overdrafts and bounced checks occur when you complete a financial transaction (e.g., write a check) for more than what is available in the account. Your financial institution may pay the amount and charge you a fee, known as an overdraft fee or a nonsufficient funds fee. Tip: Avoid overdraft or non-sufficient funds fees by making a habit of monitoring the balance in your checking account. Slide 6 – Overdrafts and Bounced Checks Lesson Reference: Basic Banking Services, Activity 6 – Overhead 1 29

30 Basic Banking Services - Activity 7 ACTIVITY 7 The ABCs of a Savings Account Overview Purpose of a savings account Shopping for a savings account Applying for a savings account Monthly bank statement checkup 30

31 REASONS TO SAVE Emergencies Future Purchases Future Investments Slide 1 - Reasons to Save Lesson Reference: Basic Banking Services, Activity 7 – Overhead 1 31

32 SHOPPING FOR A SAVINGS ACCOUNT Factors to consider: Safety Risk Liquidity Minimum Account Balance Requirements Fees and Service Charges Interest Rate Returns (Earnings) Automatic Transfer Direct Deposit Slide 2 - Shopping for a Savings Account Lesson Reference: Basic Banking Services, Activity 7 – Overhead 2 32

33 OPENING A SAVINGS ACCOUNT Slide 3 – Opening a Savings Account Lesson Reference: Basic Banking Services, Activity 7 – Overhead 3 33

34 Slide 4 – Bank Statement Lesson Reference: Basic Banking Services, Activity 7 – Overhead 4 BANK STATEMENT 34


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