Presentation on theme: "Where to Stash Your Cash"— Presentation transcript:
1 Where to Stash Your Cash Banking servicesWhere to Stash Your Cash
2 How banks Work Objectives Identify how banks operate and how they benefit customers.Describe the benefits of using a checking account
3 Role of banks Banks in the business of making a profit Savings Account Home LoanProvide SecurityFire and theftIncreases purchasing powerInflation vs. InterestBanks are regulatedRequired to keep some of your moneyMoney is insured up to $250,000 per owner (FDIC)Make borrowing easier.
4 Types of Money Currency Paper money or coins Typically used for small transactionsChecksOrder to bank to pay a specified sum to a person or business on the checkPayee – the person who cashes the check
5 Types of Money Checks (cont) Advantages Safety Written to specific personLost or stolen no one else can cash itBank will ask for identificationConvenienceDo not need to carry a large amount of moneySend money by mail
6 Types of Money Checks (cont) Advantages (cont) Records your transactionsCarbon CopyBanks keep record of checks on you statement.
7 Checking Accounts Objectives Demonstrate the ability to write, endorse, record, and deposit checksDescribe types of checking accounts and fees associated with them
8 Checking AccountsChecking Account- a bank account that allows you to write checks to make paymentsOpen a checking accountComplete signature cardValid identificationInitial depositBank provides check for a feeUnder 18 need a co-owner
9 Checking Accounts When you write a check include: Date you write the checkName of the payeeAmount written in words and numbersYour signatureDescription in memo space
10 Checking Accounts Check register – booklet for recording transactions Record each transaction right awayRecord interestCalculate balanceRecord all check numbersHelps us stay away from overdrawingOverdrawing – write a check for more than you have in your account.Fees: $10 - $38Banks made 31.5 BILLION dollars on these in 2012
11 Checking Accounts Cash a check Endorse – sign your name on the back of a checkDepositsWrite amount of the check in the checks row.If you have more than one check write it below the first one.May have to write down bank number of each check.Many need ID
12 Checking Accounts Check Clearing process When depositing a check you CANNOT withdrawal it immediately.Check must clear firstYour bank needs to make sure the check writers bank has sufficient funds to pay for the check.2-3 business days.
13 Checking Accounts Fees Monthly Maintenance- may be waved if a monthly minimum is kepttATM FeeATM/Debit Card Replacement FeeDebit Card FeeEarly Withdrawl FeeInsufficient or Non-Sufficient FundsOverdraft FeeTeller Fee – If you go into the bank.Other banking fees
14 Electronic banking Objectives Describe types of electronic transactions you can makeDiscuss your rights and responsibilities in electronic transactions
15 Electronic banking Automated Tellar Machine (ATM) Use card and personal identification number (PIN) to do banking transactionsDeposit MoneyWithdrawal MoneyTransfer MoneyMobile BankingPicture taking
16 Electronic bankingDirect Deposit – Paychecks go right to bank account.Debit Cards – Work much like checks. Like a credit card.Automatic Bill PaymentsAutomatic Withdrawal (Mortgages)
17 Balance your checkbook ObjectivesCompare transactions on a bank statement to entries in your check registerBe able to balance and reconcile your check book.
18 Balance your checkbook 1.) Confirm Transactions 2.) Take Balance from statement 3.) List deposits not shown on the statement 4.) Total statement balances and deposits 5.) List checks not on statement 6.) Total checks 7.) Check to see if balances match check book.
19 Other banking services ObjectivesIdentify different types banking products.
20 Other banking services Cashier’s Check – bank’s own personal check, signed by the bank cashier.Bank certifies that the funds are there.More reliable than a personal checkCertified Checks – Personal check that has been stamped and signed by a bank officer.Withdrawal money immediately from your account.Money Orders – Check that draws on the money of the bank or financial business that issued it.Travelers Checks – Checks that are paid for in advance and if they are lost or stolen the company will replace them.Safety Deposit Box