 Two types of banks – for profit bank and credit unions  Credit unions are local and member owned – not for profit – limited sometimes in services  Banks have share holders, and offer a full range of financial products and services, for profit (fees and interest)

 Because checking accounts differ, you need to know: Any fees you pay for writing checks Whether free checking is available with a certain minimum balance Whether you are eligible for a checking account that pays interest What other bank services you will use Whether it is more economical to pay a monthly service charge or a per-check fee The fee charged for a bounced check

 Writing Checks vs Debit Card: check takes longer for the money to come out of your account, some places don’t accept debit cards  Bank Statement vs check register: bank statement is a monthly report showing all deposits and withdrawals that the bank produces, check register your own place to write checks you have written  Canceled checks: a check paid by the bank, proof of payment  Deposit slip: a record of what you put into your account  Bounced check: a check that is written with insufficient funds in your account (overdraft fee)

 Ask yourself the following questions before you choose a savings plan: How much can I afford to save on a regular basis? How long will I leave my deposits in the account? In case of emergency, how quickly can I obtain my money?

 Interest: the amount lenders pay for the use of customer’s money  Compound Interest: interest paid on interest  Certificate of Deposit (CD): special type of deposit account with a higher rate of interest usually for larger amounts with a penalty for early withdrawal  Money market account: for larger amounts with higher interest no penalty for withdrawal

 Electronic banking involves many different types of transactions: Automated teller machines (ATMs) Direct deposit Pay-by-phone systems Personal computer banking Ebills, Bill pay, online bank statement, transfers Point-of-sale transfers Electronic check conversion Mobile Banking Apple pay, picture deposits

 Read pages  Answer in complete sentences Get Involved page 390 #2-4, page 396 #2  Page 392 Critical Thinking questions