1. Bank Accounts
Consumer Math

2. Where do I keep my money?

3. Choosing a Financial Institution
Banks are owned by investors and are for-profit businesses
credit unions are not-for-profit and member- owned
thrift banks specialize in home loans and serving small businesses within the community

4. Types of Financial Institutions
Banks
Credit Unions
Thrift Banks
Audio - Financial Institutions

5. Types of Financial Institutions
Banks
For-profit institution
Makes loans, pays checks, accepts deposits and offers other banking services
Insured by the FDIC
Credit Unions
Not-for-profit institution
Owned by its members
Offers personal loans and other banking services
Insured by the National Credit Union Administration (NCUA)
Thrift Banks
A savings bank, credit union or savings and loan association 2.
Similar to a bank
Main business is home loans

6. Comparing Accounts
Tech-savvy services (e.g., online banking, text message banking, etc.)
Other services (e.g., overdraft protection)
Minimum opening deposit
Monthly maintenance fees
Overdraft fees
ATM fees
Penalties and withdrawal limits

7. Bank Fees Monthly Maintenance Minimum Balance Overdraft ATM Fees
Returned Deposit
Paper Statements

8. Bank Benefits Checking accounts Interest on savings Direct Deposit
Online Banking
Mobile Banking

9. Bank Accounts - Types Savings accounts Basic Checking Accounts
Interest-bearing Checking Accounts
Money Market Deposit Accounts (MMDAs)
Certificates of Deposits (CDs)

10. Bank Accounts - Types Savings Accounts
Can make deposits and withdrawals
Higher interest rate than checking account
Lower than a money market or CD
Some banks may charge a fee if your balance falls below a specified amount

11. Bank Accounts Savings Accounts Basic Checking Accounts
Able to use checks
Usually do not pay interest
May restrict or impose fees for excessive activity

12. Bank Accounts Savings Accounts Basic Checking Accounts
Interest-bearing Checking Account
Able to write an unlimited number of checks
May also be called negotiable order of withdrawal (NOW) accounts
Charge a monthly service fee if balance falls below a preset level

13. Bank Accounts Savings Accounts Basic Checking Accounts
Interest-bearing Checking Account
Money Market Deposit Accounts (MMDAs)
Invest your balance in short-term debt such as commercial paper, treasury bills, or CDs
Higher interest than savings account
Require a higher minimum balance
Limited number of transfers
Specified Returns and losses

14. Bank Accounts Savings Accounts Basic Checking Accounts
Interest-bearing Checking Account
Money Market Deposit Accounts (MMDAs)
Certificates of Deposit (CDs)
“Time Deposits” – agreed to keep the money in the account for a specified amount of time
Inaccessible funds (Penalty for withdrawal)
Higher interest rates with longer durations

15. References
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