1. Bank accounts What are some of the advantages to having a bank account?

2. Advantages of a bank account include: Your money is safe. Each account is insured. Canceled checks are proof that you paid a bill. Using check-cashing stores and money orders is more expensive than paying bank fees. A bank account can help you keep track of how you spend your money. Can help build your credit score.

3. Banks and Credit Unions What is the difference between a bank and a credit union?

4. A credit union is a non profit cooperative financial institution owned and controlled by its members. A bank is a for-profit company that makes money from charging fees and lending money. Owned by stockholders

5. Credit Unions Serve groups that share something in common, such as their profession, place of worship or neighborhood. Provide checking and savings accounts and loans, often with better rates than banks. Banks Anybody can open an account at any bank. Also provide checking and savings accounts and loans. Have a tendency to impose higher fees and more restrictions to help generate more fees.

6. Account verification services How do banks find out about your past account history?

7. Is the major national account verification company. – When you apply for a new checking account, the bank finds out if you are in the ChexSystems database. – If you ever abandoned a checking account with a negative balance, you are probably listed in the ChexSystems database.

8. ChexSystems records Reports about overdrafts or closed accounts remain in your file for five years You can get a free copy of your report by contacting ChexSystems at (www.consumerdebit.com) You have the right to dispute inaccurate information in your account verification report. Your rights Also, you can get a free copy of your ChexSystems report if: – You have been denied a bank account in the past 60 days because of information provided by ChexSystems. – Your checks were stolen and used by an impostor or you are the victim of any bank fraud. Anytime for about $10

9. Don’t get discouraged!!! If you try to open a new checking account and are turned down by a bank or credit union because of your past account history, don’t give up. Different banks and credit unions have different requirements, so shop around.

10. What kinds of things can you do with a checking account?

11. Checking Accounts Checking accounts allow you to: – Write checks. – Use your ATM/debit card to get cash at ATM machines and to make purchases at point-of-sale terminals (such as at the supermarket). Enter Pin or Sign… What is the difference? – In some cases, your ATM/debit card can be used to make purchases where credit cards are accepted.

12. Types of Checking Accounts Free checking Direct deposit Electronic transfer accounts (ETAs) Basic (Lifeline) accounts Online banking and bill payment Low cost accounts for seniors or students

13. Debit Cards You can use your debit card in two ways: – At an ATM or a point-of-sale (POS) terminal with your personal identification number, or PIN. – At stores and restaurants that accept credit cards, without providing your PIN. You will be asked to sign a receipt. If your debit card is lost or stolen: – Alert your bank as soon as possible. The longer you wait, the more money you might be responsible for if an unauthorized person uses your card to buy things.

14. Check writing activity In this activity you will practice writing a check and entering it into a sample checkbook register. Why is it important to enter the checks you write in your checkbook register? – So that you don’t bounce checks. – So that you know how much money you have in the bank. – So that you can track your spending and stick to a budget.

16. Accounts How is a savings account different from a checking account?

17. What is interest? Interest is the cost of lending money. – When a bank gives you a loan, you pay interest to them. When you keep your savings in a bank, they pay interest to you. In a savings account, your money works for you by earning interest. What are the two types of interest: Simple interest means that you only earn interest on your initial deposit. Compound interest allows you to earn interest not only on your initial deposit, but also on the interest you earn as you go along

18. Certificates of deposit (CDs) What is a certificate of deposit?

19. Certificates of deposit (CDs) A certificate of deposit, or CD, is a kind of savings account in which you leave your money on deposit for a set period of time (or term) in order to earn interest. The longer the term of your CD, the higher your interest rate will be. If you withdraw your money before the term ends, you will lose interest and might have to pay a penalty. CD’s may come in different fixed amounts for example $500, $1000, $5000, $10,000 etc. Typical terms for a CD are 30 Days, 90 Days, 6 Months, 1 Year, 2 Year, 3 Year, 4 Year, 5 Year but can be anything in between. Make sure you always read the fine print.

20. Overdraft Protection An optional bank service called overdraft protection can save you from bouncing checks. It can work with a loan or line of credit or with your savings account. Yes you are being charged interest Does not result in an insufficient funds fee when your account is overdrawn.

21. What is a Money Market Account?

22. Money Market Accounts A money market account is a type of savings account offered by banks and credit unions just like regular savings accounts. The difference is that they usually pay higher interest, have higher minimum balance requirements (sometimes $1000-$­ 2500), and only allow three to six withdrawals per month. Another difference is that, similar to a checking account, many money market accounts will let you write up to three checks each month. The money in a money market account is insured by the Federal Deposit Insurance Corporation (FDIC), or (NCUA) for credit union accounts. The money market is a component of the financial markets for assets involved in short-term borrowing and lending with original maturities of one year or shorter time frames. Trading in the money markets involves Treasury bills, commercial paper, bankers' acceptances, certificates of deposit, federal funds, and short-lived mortgage- and asset-backed securities. It provides liquidity funding for the global financial system.

23. Safe deposit boxes What is a safe deposit box? What are some things that you might keep in a safe deposit box?

24. KEEP in Safe Deposit Copies of insurance policies. Birth, marriage and death certificates. Mortgages, leases and other important contracts. Stock and bond certificates and certificates of deposit (CDs). Valuable jewelry. DO NOT KEEP in Safe Deposit The originals of your will and life insurance policies should not be kept in a safe deposit box. The box might be sealed at the time of your death and your survivors will need a court’s permission to open it.

25. Banking costs What are some ways you can save money on banking costs? – Combine checking and saving balances to avoid monthly fees. – Save on ATM fees by using your own bank’s machines. – If you can’t avoid an ATM fee, take out larger sums less frequently.

26. Ideas to keep banking costs down Use direct deposit for your paycheck or government benefits check. Buy checks from a mail-order company instead of your bank. Ask the bank to reverse the occasional late fee or bounced check fee. These are three mail-order sources for buying checks for less: – Checks in the Mail, 800-733-4443, (www.citm.com) – Current, 800-848-2848, www.currentcatalog.com/~Checks.html – Checks Unlimited, 800-210-0468 www.checksunlimited.com

27. How to complain If your bank or credit union makes a mistake, such as mixed-up deposit, no-show bill payment or double debit, you have the right to complain!

28. Solving a bank problem – Complain as soon as you can. – Always write down the name of the person who helped you. – Offer a solution and ask the bank to correct the problem. – Don’t lose your temper. – Send a summary letter (registered mail receipt requested) to prove you took timely action.

29. Taking it higher Ask to speak with their supervisor or superior. If you are not able to resolve your complaint with your bank or credit union, you can complain to the government regulator.

30. Opening a bank account What are some questions you should ask when you are deciding on a bank or credit union? – What is the minimum to open an account? – What is the interest rate on the account? – Is there a monthly fee? – Is there any way to avoid monthly fees? – What happens if my balance falls below the minimum requirement? – Is there a maximum number of checks I can write each month? – Is there a fee for using your ATMs?

31. Opening a bank account What should you bring with you to the bank when you are opening a new account? – Photo identification, such as a driver’s license, state ID card or passport – Proof of your address, such as a utility bill or lease – Your Social Security number for tax purposes

32. Sample savings account application — an activity This is a sample application for an interest-bearing account at “MoneyWi$e Bank.” Let’s walk through the activity together. When you sign a bank account application you are giving the bank or credit union legal permission to access your credit report or ChexSystems report.