Banking Basics O You can take charge of your financial future!

O Why keep your money in a bank? O Safety O Select an FDIC-insured financial institution O Calculate your insurance coverage with the Electronic Deposit Insurance Estimator (EDIE): O Convenience O Cost O Security O Financial future Reasons to Keep Money in a Bank

Insured Financial Institutions O Banks and Thrifts: O Are subject to federal and state laws O Make loans, pay checks, accept deposits, and provide other financial services O Credit Unions: O In addition to the above: O Are non-profit financial institutions O Require a membership to open an account

Bank vs. Check-Cashing Services Check-Cashing Services Check-cashing fees: 4 x $5 = $20 a month $20 x 12 = $240 a year Money order fees: 5 x $1 = $5 a month $5 x 12 = $60 a year Total: $300 Bank Monthly fee: $5 a month $5 x 12 = $60 Box of checks: $12 Total: $72 Savings: $228

Additional Benefits of a Bank O Internet banking access 24 hours, 7 days a week O Good credentials for loan applications with responsible use O No worries about cash being lost or stolen

Open & Maintain a Bank Account 1. Open the account 2. Make deposits and withdrawals 3. Record interest and fees 4. Keep track of your balance

Open a Bank Account O Complete account verification process O Photo Identification O Your Social Security Number or Individual Taxpayer Identification Number O Ask about “second chance” checking programs if you are unable to open an account

Types of Deposit Accounts O Examples include: O Checking account–to pay bills and buy goods O Savings account–to save money and earn interest O You may have transaction and monthly fees. O The bank will send you periodic statements.

Deposit O Deposit: money you add to your account O Deposit slip: tells the bank how much money you are adding to your account Note: You may not have immediate use of deposited funds until the bank ensures there are funds at the originating bank.

Balance O The amount of money you have in your bank account What is your balance? Description+/-Balance Opening Balance +$100 $100

Withdrawal O Taking money out of your account using checks, withdrawal slip, or ATM Always know how much is in your account! Description+/-Balance Opening Balance +$100$100 Withdrawal-$20 $80

Fees O Examples include: O Monthly maintenance fees O Penalty fees O Overdraft fees

O What is an overdraft? O When you do not have enough money in your account to cover a transaction and you have pre-authorized the financial institution to pay it anyway O Overdraft Protection offered at your financial institution O Can save you money on returned item and merchant fees should you make an honest mistake in your checkbook or have an unexpected emergency Basics of Overdraft

O Fees O Per item AND per day at some financial institutions when your account is overdrawn O Usually does not cost you unless you use it O Ways to avoid overdraft fees O Always familiarize yourself with the financial institution’s ODP program before requesting ODP O Keep track of your account balance and only use funds available O If you need to use your ODP for an emergency, do one cash withdrawal and pay for items with cash. This will help you avoid a fee for each item you pay.

Balance After Fees Charged Description+/-Balance Opening Balance +$100$100 Withdrawal-$20$80 Fees-$4 $76

Interest O A percentage of your balance that the bank pays you for keeping your money at that bank Description+/-Balance Opening Balance+$100$100 Withdrawal-$20$80 Fees-$4$76 Interest+$1 $77

Non-Deposit Accounts O Includes stocks, bonds, and mutual funds O Not FDIC-insured; therefore, you may risk losing your investment. O Speak with a Certified Financial Planner to help you decide how to invest your money.

Filling Out A Deposit Slip Account Number Name, Date, and Signature for cash received Deposit Amounts Print Name

Filling Out A Withdrawal Slip Account Number SSN, Name, and Signature Date Amount of Withdrawal

Writing A Check Account Number Fraction Code Routing Number Drawee Bank Maker Information Routing NumberCheck Numbers Must Match Signature Micro Printing

Balancing Your Check Book

Checking Account Statement 1. Bank Name: The name of your institution and its location. 2. Personal Information: Your name and address. 3. Account Information: The type of account and the account number. 4. Statement Period: The dates that the statement covers. 5. Activity Summary: An overview of your credits and debits as well as the balance remaining at the end of the period. 6. Transaction Summary: A detailed listing of your credits and debits. Note that the dates for the checks you have written are those on which the bank processed them, not when you wrote them.

Reconciling our Account O Balancing: Keeping you checkbook register up to date and maintaining totals. O Reconciling: Finding and correcting any differences between the statement balance and your check register balance.

Thank You for Banking with FSNB