1. Warm Up – Pick which bank you would like to deposit your money in. Give 2 reasons for picking the bank. CriteriaWells FargoA Plus FCUBank of America Savings Account Fees $10.00/mo0$5.00/mo Checking Account Fees $5.00/mo.0$12.00/mo ATM Fees 000 Savings Rates 0.01% APY0.25% APY0.05% APY 60 mo Auto Loan Rates 3.99% APR3.00% APR3.40% APR

2. Objective We will Identify types of financial service providers We will Identify types of financial service providers I will Practice using a checking account and reconciling a bank statement I will Practice using a checking account and reconciling a bank statement

3. Services Offered and Explained Savings Accounts From a bank – Called Savings Account From a CU – Called a Share Account For holding money for more than 3 months Minimal Fees Need to track balance and reconcile the monthly statements.

4. Checking Account F rom a bank – Called Checking Account From a CU – Called a Share Draft Account Can write checks or withdraw money using a Debit Card. You enter into a contract when you write a check. Failure to comply with the contract is against the law (theft by check).

5. Costs and Benefits to “Checking” Costs Costs Write bad checks, go to jail (maybe) Must keep an accurate record of the balance and compare it with the bank statement Have to buy the checks Benefits Convenient: You don’t have to get money orders Safe: You don’t have to carry cash. Proof of Payment: A canceled check proves you have paid a bill Easy to use for budgeting.

6. Using a checking account Using a share draft account Deposit Slips: Proof of Deposit Checks/Drafts or Withdrawls Promise to pay written on the bank Debit Cards “Check by card” Bank Statement: A document completed by the FI that shows all transactions on the account for the previous month Check Register: Your transaction history Reconciliation: Checking to see if you and the bank agree

8. Steps to Balance Check Book Step 1 - Write down transactions each day when they occur in the check register. Make sure you write Date Check Number Place Amount Step 2 - Calculate the new account balance after each transaction to keep a running total.

10. Steps to Reconciling your Bank Statement What you need Check Book Register Bank Statement Reconcile Sheet Usually on back of Bank Statement Calculator Steps 1. Using Bank Statement, check which transactions the bank has paid. 2. Check off in book transactions (-)that bank has paid. 3. Check Off all deposits (+) that the bank has recorded. 4. Sum all unpaid transactions 5. Sum all unpaid deposits. 6. Balance, if unbalanced go back.

13. Besides checks and deposits, what other transactions might be on my bank statement? Service Fees -Monthly or annual charges for using their services. ATM or debit fees: Charge for using an ATM NSF or overdraft fees: Return fees for writing bad checks or using a debit card without enough money in the account. Check fees: The cost of buying checks Stop payment: When you tell the bank not to honor your check. POS fees: Charged when you purchase something with a debit card.

14. Other Services Banks Offer ATM ATM Online Banking Online Banking Text Alerts Text Alerts Wire Transfers Wire Transfers Bill Pay Bill Pay Loans Loans Small Investments (IRA’s, CD’s, Bonds) Small Investments (IRA’s, CD’s, Bonds)

15. Fraud Identity Theft: Identity Theft: Allows others to “charge” income to your federal tax liability Allows others to “charge” income to your federal tax liability Allows others to open credit cards in your name, not pay them, then it shows up as your bad credit. Allows others to open credit cards in your name, not pay them, then it shows up as your bad credit. Open checking account in your name. Open checking account in your name. Giving your name to police when they are arrested. Change billing address Incur debts File bankruptcy Get married, you’re guilty of bigamy. Et. al

16. How to prevent ID theft Shred account statements Shred account statements Check account statements for purchases you didn’t make. Check account statements for purchases you didn’t make. Don’t give out information over the phone Don’t give out information over the phone Check mail daily Don’t update accounts via email Don’t download “free” software without security certificate.