1. 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.

2. 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.

3. 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)

4. 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.

5. 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

6. 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.

7. 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
address
Valid identification
Valid forms are: U.S. driver’s license or state ID, passport, U.S. military ID, Matricula Consular Card

8. 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 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

9. Writing a Check

10. Writing a Check

11. Balancing Your Checkbook
Fee 8/23 ATM Fee

12. 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

13. 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

14. 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.

15. 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.

16. 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 $ instead of $300. And it took 14 months to pay off.

17. $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,

18. 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!

19. 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 s 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!

20. Learn more about TCF Bank
Stop by your campus branch located inside the Holmes Student Center
Visit
Call TCF BANK

21. Questions?