September 7 & 8, 2010

Objectives  Compare financial institutions and services available.  Determine how to develop a relationship with a financial institution.

What is a “bank”? The term “bank” in a general sense refers to any type of financial institution where you may deposit money. In addition, consumers can Save money (savings account) Maintain finances (checking account) Borrow money (loans) Obtain credit Other services (investments, financial planning, safe deposit boxes, etc.)

Types of financial institutions 1. Commercial Banks – Owned by shareholders and operated (for profit) 2. Savings and Loan – Usually owned by the depositors (for profit) 3. Credit Union – Owned by its members who have a common bond (not for profit) 4. Internet Bank – Operates exclusively over the Internet using online banking (for profit) Page 238

Developing a relationship with a financial institution?  By opening an account (savings and then checking)  Handle the account responsibly  Try to visit the same location over a period of time, so you are familiar with the employees

Advantages of Using a Financial Institution  Convenience  Safety  Growing your money  Cost savings  Financial Advice

What is FDIC?  Stands for Federal Deposit Insurance Corporation  Agency of the federal government  Insures savings, checking and other deposit accounts in most financial institutions  Up to $250,000 per depositor

What do you need to open an account?  Money to deposit  Identification – driver’s license  Social Security Number