Banking in the United States Welcome to the Northern Illinois University!!! We are going to give you a brief overview of banking in the United States.

U.S. Banking System Overview The Federal Reserve System is the central banking system of the United States. Regulates the banking system Maintains the stability of the financial system Protects the credit rights of consumers Currency is created outside of the Fed, the U.S. Department of the Treasury.

Banking Safety FDIC is the Federal Deposit Insurance Corporation Insures deposits held in bank accounts – up to $250,000 All chartered banks are required to be a member of FDIC “Member FDIC” TCF Bank is a member of the Federal Deposit Insurance Corporation If for any reason the bank were to go out of business, your can be reimbursed up to $100,000. If you have MORE than $100,000, be sure to talk to your banker – there are ways to insure your funds in the event that they exceed 100K. OCC – Office of the Comptroller of Currency OTS – Office of Thrift Supervision (savings and loan)

Types of Bank Accounts Checking Accounts – account for everyday use Interest Bearing Non-Interest Bearing Savings Accounts – reserved funds for future use Regular Savings Money Market Time Deposit (CD’s) Monetary Instruments – used as a form of payment Cashiers Checks Money Orders Travelers Checks Checking – recommended for college students, typically a high transaction account Money Market – like a checking account, but with limited transaction and it has an interest rate Savings – makes interest, but you cannot write checks. Most banks issue an ATM card with a saving account. Certificates of Deposit – Time deposits. Usually the highest interest rate, because you are agreeing to leave your money on deposit with the bank for a certain period of time.

Checking Accounts Everyday Money Management Allows you to easily pay for living expenses Food, clothing, books, school supplies Provides a place to deposit money your receive. Financial aid awards, money from home, loans, stipends Keeps your money safe. Provides a record of your spending

ATM/Check Cards/OneCard Debit Secret Codes or PIN numbers Choose 4 or more digits to be used with ATM transactions and transactions with merchants. VISA® or MasterCard® Logo and function Debits the amount of the purchase from your checking account.

Account Opening Requirements When you’re read to open an account, you will be asked to provide the following: Name Local U.S. address Home country address Phone Number E-mail address Valid identification Valid forms are: U.S. driver’s license or state ID, passport, U.S. military ID, Matricula Consular Card

Banking Tips Complete all transaction tickets and checks Endorse all checks Always bring photo identification with you to the bank Keep a check book register Reconcile your bank statement Contact your bank immediately with any discrepancies. Be sure to keep your bank informed of any address, phone, and e-mail changes When using your check card in another country, be sure to contact customer service to prevent disruption in your account. International service fees may apply when using your account out of the U.S. ID helps banks make sure its you

Writing a Check

Writing a Check

Balancing Your Checkbook Fee 8/23 ATM Fee 2 00 378 00

International Wire Transfers To send a wire outside of the U.S. you must provide your bank with the following: Bank Name Bank Swift Code (if applicable) City and Country of the Bank Person’s Name and Address Person’s Account Number Ask about the charge $30 - $60 Certain restrictions apply for some countries. See your banking representative for details. Talk to your bank –there is typically a charge to receive a wire as well as to send one

Domestic Wire Transfers To receive a wire in the U.S. or to send a wire to someone with a U.S. bank account requires: Bank Name Bank Routing Number or ABA Number Person’s Name and Address Person’s Account Number Ask about the charge $10 - $40 ABA is like the bank’s account number with the Federal Reserve. Wire transfers are typically more for emergency situations because of the fees involved

Credit Card Credit Cards are a system of payment where the issuer lends money to the consumer. Consumers are allowed to revolve their balance (carry over balances from month to month) at the cost of interest charges. A credit card gives you basically a short term loan, and like a loan you get approved for different amounts and you pay interest on the amounts. Eventually, depending on your credit history, you’ll be able to get a credit limit anywhere between $300 and $25,000.

When choosing a credit card, consider the following factors: Annual Percentage Rate (what it costs you per year in interest) Periodic Rate (interest applied to your monthly payment) Grace Period (the number of days your purchase is without applied interest) Annual fees (cost for the privilege of having the card) Having “good credit” as a result of paying your credit card bills on time, can help you get approved for loans, mortgages, car payments, and apartment leases; while bad credit (debt) can make these things almost impossible.

Credit cards make it easy to fall into uncontrolled spending Credit cards make it easy to fall into uncontrolled spending. The following is an example of what your bill may look like if you only pay the minimum monthly payment of $60 on a $300 balance with 18% monthly interest: The total interest paid ended up being $535.09, making the total expense $835.09 instead of $300. And it took 14 months to pay off.

$500 took 18 months to pay off at $1,191.30. Date Previous Balance Interest Charge Balance plus Interest Your Payment Remaining Balance 1-Jan $500.00 $90.00 $590.00 $95.00 $495.00 1-Feb $89.10 $584.10 $489.10 1-Mar $88.04 $577.14 $482.14 1-Apr $86.78 $568.92 $473.92 1-May $85.31 $559.23 $464.23 1-Jun $83.56 $547.79 $452.79 1-Jul $81.50 $534.29 $439.29 1-Aug $79.07 $518.37 $423.37 1-Sep $76.21 $499.57 $404.57 1-Oct $72.82 $477.39 $382.39 1-Nov $68.83 $451.22 $356.22 1-Dec $64.12 $420.34 $325.34 $58.56 $383.91 $288.91 $52.00 $340.91 $245.91 $44.26 $290.17 $195.17 $35.13 $230.30 $135.30 $24.35 $159.66 $64.66 $11.64 $76.30 ($0.00) $500 took 18 months to pay off at $1,191.30.

Identity Protection Identity theft can ruin your financial future and make it impossible for you to maintain good credit. Identity theft will leave you with bad credit that takes months or years to correct; even though you get reimbursed for the thief's bills. A thief can take over your account by acquiring account information such as account or card numbers and drain your assets. A thief can also use your personal information to open new accounts and credit lines without your knowledge. Fraud is a reality – the bank will never call you and ask you for personal info Ex. Schemes where a stranger will ask you to cash a check for them and give you a portion. Prob. Fraudulent activity! Do not do it!

Prevent Theft Never give out personal information (SS number, account numbers, bank routing numbers, PIN’s) over the phone. Only use secured web sites when shopping online Never leave your ID in the car unattended Do not carry your SS card, birth certificate, or passport unless absolutely necessary Do not carry cards that show your SS number Remove your name from phonebooks and reverse directories Mail bills from the post office Keep photocopies of your credit cards at home in a safe place Order your credit report yearly from one of the 3 credit bureaus free of charge Never reply to e-mails requesting personal financial information Cross off card information on receipts Shred receipts, credit card offers, and statements Fraud is a reality – the bank will never call you and ask you for personal info Ex. Schemes where a stranger will ask you to cash a check for them and give you a portion. Prob. Fraudulent activity! Do not do it!

Learn more about TCF Bank Stop by your campus branch located inside the Holmes Student Center Visit www.tcfbank.com Call 1-800-TCF BANK

Questions?