1. Where to Stash Your Cash
Banking services
Where to Stash Your Cash

2. How banks Work Objectives
Identify how banks operate and how they benefit customers.
Describe the benefits of using a checking account

3. Role of banks Banks in the business of making a profit Savings Account
Home Loan
Provide Security
Fire and theft
Increases purchasing power
Inflation vs. Interest
Banks are regulated
Required to keep some of your money
Money is insured up to $250,000 per owner (FDIC)
Make borrowing easier.

4. Types of Money Currency Paper money or coins
Typically used for small transactions
Checks
Order to bank to pay a specified sum to a person or business on the check
Payee – the person who cashes the check

5. Types of Money Checks (cont) Advantages Safety
Written to specific person
Lost or stolen no one else can cash it
Bank will ask for identification
Convenience
Do not need to carry a large amount of money
Send money by mail

6. Types of Money Checks (cont) Advantages (cont)
Records your transactions
Carbon Copy
Banks keep record of checks on you statement.

7. Checking Accounts Objectives
Demonstrate the ability to write, endorse, record, and deposit checks
Describe types of checking accounts and fees associated with them

8. Checking Accounts
Checking Account- a bank account that allows you to write checks to make payments
Open a checking account
Complete signature card
Valid identification
Initial deposit
Bank provides check for a fee
Under 18 need a co-owner

9. Checking Accounts When you write a check include:
Date you write the check
Name of the payee
Amount written in words and numbers
Your signature
Description in memo space

10. Checking Accounts Check register – booklet for recording transactions
Record each transaction right away
Record interest
Calculate balance
Record all check numbers
Helps us stay away from overdrawing
Overdrawing – write a check for more than you have in your account.
Fees: $10 - $38
Banks made 31.5 BILLION dollars on these in 2012

11. Checking Accounts Cash a check
Endorse – sign your name on the back of a check
Deposits
Write amount of the check in the checks row.
If you have more than one check write it below the first one.
May have to write down bank number of each check.
Many need ID

12. Checking Accounts Check Clearing process
When depositing a check you CANNOT withdrawal it immediately.
Check must clear first
Your bank needs to make sure the check writers bank has sufficient funds to pay for the check.
2-3 business days.

13. Checking Accounts Fees
Monthly Maintenance- may be waved if a monthly minimum is keptt
ATM Fee
ATM/Debit Card Replacement Fee
Debit Card Fee
Early Withdrawl Fee
Insufficient or Non-Sufficient Funds
Overdraft Fee
Teller Fee – If you go into the bank.
Other banking fees

14. Electronic banking Objectives
Describe types of electronic transactions you can make
Discuss your rights and responsibilities in electronic transactions

15. Electronic banking Automated Tellar Machine (ATM)
Use card and personal identification number (PIN) to do banking transactions
Deposit Money
Withdrawal Money
Transfer Money
Mobile Banking
Picture taking

16. Electronic banking
Direct Deposit – Paychecks go right to bank account.
Debit Cards – Work much like checks. Like a credit card.
Automatic Bill Payments
Automatic Withdrawal (Mortgages)

17. Balance your checkbook
Objectives
Compare transactions on a bank statement to entries in your check register
Be able to balance and reconcile your check book.

18. Balance your checkbook
1.) Confirm Transactions 2.) Take Balance from statement 3.) List deposits not shown on the statement 4.) Total statement balances and deposits 5.) List checks not on statement 6.) Total checks 7.) Check to see if balances match check book.

19. Other banking services
Objectives
Identify different types banking products.

20. Other banking services
Cashier’s Check – bank’s own personal check, signed by the bank cashier.
Bank certifies that the funds are there.
More reliable than a personal check
Certified Checks – Personal check that has been stamped and signed by a bank officer.
Withdrawal money immediately from your account.
Money Orders – Check that draws on the money of the bank or financial business that issued it.
Travelers Checks – Checks that are paid for in advance and if they are lost or stolen the company will replace them.
Safety Deposit Box