1. Section 3: Banking Services
Unit 3: Banking
Personal Finance
Section 3: Banking Services
Essential Question: How will understanding the banking services offered by banks simplify my financial life?

2. 3 Services We Will Discuss:
Banking Services
3 Services We Will Discuss:
Online Banking
Keeping a Checking Account
Smart Cards

3. Ways to use Electronic banking services
Online
ATM
Phone/Mobile

4. Examples of Electronic Services - Online
Automatic bill pay
Online bill payment
Check your account balances
View recent transactions
Transfer funds
View images of checks
View activity on loans
Reconcile accounts
Reorder checks
Request stop payment
Export account info into software package (Quicken)
View statements
Overdraft protection
Overdraft= a check written for more than your account contains
Set up Direct deposit = having your paycheck directly deposited into your checking account
You will not receive a printed check; will receive a paycheck stub

5. Examples of Electronic Services - ATM
Demand deposit
An account that lets you withdraw portions of your deposited funds at any time
ATM Cards – can only be used at ATM
Debit Cards – can use at ATM, to buy products at stores, buy online, etc.
Check Account Balances
Transfer funds

6. Examples of Electronic Services – Phone/Mobile
Check Account balances wherever you are
View recent transactions
Pay Bills
Transfer funds
View statements
Deposit checks

7. Online Banking
Online banking – also known as internet banking, allows consumers to complete transactions with wireless technology.
Wireless technology includes:
Personal Computers (PCs)
Personal Digital Assistants (PDAs)
Cellular phones

8. Online Banking… statistics for American adults
51% use online banking (that’s 61% of internet users)
32% use their cell phone for banking (that’s 35% of cell phone owners)

9. Online Banking
Consumers can access account information and statements

10. Online Banking
Consumers can transfer funds

11. Online Banking
Consumers can manage bills and apply for credit

12. Online Banking Advantages Disadvantages
Decreased cost of paper and postage
Storing all statements online instead of keeping a paper copy
Convenience
Paying bills online
Ability to access account anytime
No waiting for a monthly statement
Not as personal
Not able to access without technology
Decrease in safety features
Increase in risk for fraud

13. Online Banking
Online bill payment – allows consumers to send money from one account to a vendor
Usually occurs automatically
Consumers need to check with the vendors regarding their policy of when the payment will be processed
How do I make sure it is safe online?
The Uniform Resource Locator (URL) ends in “s” which stands for secure
A closed lock to the right of the URL or in the bottom right hand corner of the web browser to indicate a secure site

14. Let’s open a Checking Account!

15. Different Types of Checking Accounts
Joint Accounts
Opened by two or more people
Special Accounts
Offered for people who have a small activity in their accounts each month
Standard Accounts/Share Accounts
Set monthly service fee
Typically waive fee if you maintain min. balance
Shared Accounts are offered at Credit Unions
Interest-Bearing Accounts
Earn interest
Must keep balance above minimum amount set by bank

16. $$$ Checking Account Initial deposit A signature authorization form
You want to open a Checking Account….What do you need?
A signature authorization form
filled out and signed
The bank can then compare your signature written on checks
Initial deposit
Have a minimum deposit amount ($50 or more)
$$$

17. Writing a Check Your name and address Check # Amount of Check ($) Date
Payee: Who you are writing the check to
Amount of Check
(in words)
Your signature
Memo
(note why you wrote the check)
Identification Numbers
(bank routing #, account #, check #)

18. Three Different Types of Endorsements for the Back of Checks
Blank Endorsement
Restrictive Endorsement
Special Endorsement
More secure than blank endorsement
Receiver writes “for deposit only” and account number above his/her signature
Allows the check to only be deposited
Receiver signs and writes “pay to the order of (fill in person’s name)”
Allows the check to be transferred to a second party
Receiver of the check signs his/her name
Anyone can cash or deposit the check after has been signed

19. After You Have Written a Check
When you write a check you may receive a Canceled Check
Canceled Check = A check that bears the bank’s stamp, indicating that it has cleared

20. Checking Accounts
Checkbook Register = a booklet used to record all account transactions
Record every check you write
Record every time you use your debit card
Record any cash you put in your account or take out
Record any service charges from your bank

21. Checking Accounts Want to put money in your account?
You will need a Deposit Slip
Contains the account holder’s account number and allows money (cash or check) to be deposited into the correct account
Back of
Deposit Slip
Front of Deposit Slip

22. Fees that Banks May Charge
ATM transactions
ex: $2.50 per transaction if it is not your ATM
Check cashing for non-bank customers
Order new checks (printing checks)
Overdraft
Ex: $35.00 fee every time you go below $0.00 in your account
Processing fee
Bounced checks

23. Avoid the following when using your Checking Account
Overdraft = a check written for more than your account contains
What can you do to avoid overdraft fees?
Overdraft Protection = will transfer money from one account (savings) to another account(checking) before it drops below zero.
Floating Check = writing a check, knowing there are insufficient funds in your account
You hope your deposit clears before the check is cashed by another
Illegal!

24. Reconcile Your Accounts
Reconciliation = matching your checkbook register with your bank statement
Compare what you have been keeping track of with the statement provided by your bank
Reasons why your accounts may be off:
Did you write every transaction down?
Has a check not cleared yet?
Do you have any suspicious charges?
vs.

25. What are Smart Cards?
Called “electronic wallets”, look like ATM cards; however, they also include a microchip (embedded microprocessor).
This minicomputer stores prepaid amounts for buying goods and services.
A smart card can also store data about a person’s account balances, transaction records, insurance information, and medical history.

26. Additional Uses Identification Credit cards Security access cards
Insurance cards