1. Banking and Financial Services17
Banking and Financial Services
17-1 Banks and Other Financial Institutions
17-2 Financial Services and Electronic Banking
17-3 Checks and Payment Methods

2. LESSON 17-1 Banks and Other Financial Institutions
Goals
Explain the purpose of the Federal Reserve System.
List the types of financial institutions.
Discuss factors for selecting a financial institution.
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3. Key Terms Federal Reserve System (Fed) commercial bank credit union
Federal Deposit Insurance Corporation (FDIC)
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4. THE BANKING SYSTEM The Federal Reserve System (Fed)
Supervise and regulate member banks
Bank for the banks, not an individual account
All national banks members, state banks may join.
Federal Reserve activities
Holding of Reserves
Clearing of Checks
Change the interest rate
Banking and the economy
Allows others to use deposited funds
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5. >> C H E C K P O I N T
What is the main purpose of the Federal Reserve System?
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6. TYPES OF FINANCIAL INSTITUTIONS
Deposit institutions
Commercial banks
Full Service Banks, offer a wide range of services
Savings and loan associations
Specialize in savings accounts and home loans
Mutual savings banks
Owned by, and operated for its depositors. Savings and Home Loans
Credit unions
User Owned, not for profit. Accept savings deposits and loans (personal and business), checking
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7. TYPES OF FINANCIAL INSTITUTIONS
(continued)
Non-deposit financial institutions
Life insurance companies
Investment companies
Consumer finance companies
Mortgage companies
Check-cashing outlets
For those without a bank account
Pawnshops
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8. >> C H E C K P O I N T Types of Institutions Worksheet
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9. SELECTING A FINANCIAL INSTITUTION
Services offered
Savings accounts
Checking and payment accounts
Loans and other credit plans
Other services, such as safe deposit boxes
Safety – FDIC insures up to $100, % are members
Convenience – Hours, locations, online services
Fees and charges
Restrictions
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10. SELECTING A FINANCIAL INSTITUTION Group Discovery
Wells Fargo
US Bank
West Bank
Bank of the West
Iowa State Bank
Veridian Credit Union
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11. LESSON 17-2 Financial Services and Electronic Banking
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4/19/2017
LESSON 17-2 Financial Services and Electronic Banking
Goals
Identify the financial services used by consumers.
Explain types of checking accounts.
Describe electronic banking activities.
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12. Key Terms
safe-deposit box
service charge
debit card
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13. TYPES OF FINANCIAL SERVICES
Savings services – Safe Storage of Money
Payment services – Transfer of Money
Lending services – Loans – Individual or Business
Electronic banking – Electronic Funds Transfer (ETF)
Storage of valuables – Storage of Valuables
Investment advice – Financial Guidance
Management of trusts – Money Management
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14. TYPES OF CHECKING ACCOUNTS
Regular checking accounts – lots of checks
Interest-earning checking accounts- Avg. use
Special checking accounts
rare use of checks.
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15. COMPARING CHECKING ACCOUNTS
Minimum balance
Interest rate earned, if any
Monthly service charge
Fees for other services, such as printing checks and stop payment orders
Other restrictions
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16. ELECTRONIC BANKING E-banking services Automatic teller machines (ATM)
Payments at the point-of-sale
Direct deposit - Paychecks
Automatic bill payments
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17. Electronic Banking - Online Bill Pay
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18. ELECTRONIC PAYMENT OPTIONS
Debit card transactions – deducted right from Checking
Online payments – Pay Pal, Bill Pay, Online Shopping
Stored-value cards – Lunch, Laundry, and Transit cards
Smart cards
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19. BANKING IN THE FUTURE
Financial services combined with wireless technology
Personalized systems for obtaining, transferring, and using funds
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20. LESSON 17-3 Checks and Payment Methods
Goals
Describe three main types of endorsements.
Describe proper check-writing procedures.
Explain the bank reconciliation process.
Identify other payment methods.
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21. Key Terms endorsement check register stop payment order bank statement
bank reconciliation
outstanding checks
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22. OPENING A CHECKING ACCOUNT
Benefits of checking accounts
Convenience and ease of making payments
Safety to make payments with less risk than using cash
Proof of payment
A record of finances for managing your money
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23. THE FIRST DEPOSIT
Signature card
Joint account
Deposit slip
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24. SIGNATURE CARD
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25. TYPES OF ENDORSEMENTS Blank endorsement (Traditional)
Full endorsement (Special)
Restrictive endorsement (Specific)
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26. SAMPLE ENDORSEMENTS
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27. Endorsement Practice
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28. USING A CHECKING ACCOUNT
Check-writing procedures
Elements of a check – Drawer, Payee, Drawee.
The check register
Writing a check
Proper check writing
Stopping payment
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29. PARTS OF A CHECK
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30. Check Writing Practice
Time to fill out your own check. Using the practice check, properly fill out the check you have been given to pay a Des Moines Roosevelt Participation fee.
Drawer – Yourself
Payee – Des Moines Roosevelt
Amount - $190.38
Purpose - Student Fees
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31. THE RECONCILIATION PROCESS
Bank statement information
Determine checks paid
Find differences
Calculate adjusted balance
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32. MONTHLY ACCOUNT STATEMENT
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33. RECONCILIATION FORM
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34. OTHER TYPES OF PAYMENTS
Certified checks
Cashier’s checks
Traveler’s checks
Money orders
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35. CERTIFIED CHECKS
Personal check for which a bank has guaranteed payment
Certification stamped on face
Signed or initialed by a bank officer
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36. CASHIER’S CHECKS Check that a bank draws on its own funds
Costs the amount of the check plus a service fee
More acceptable than the personal checks
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37. TRAVELER’S CHECKS
Special forms designed for making payments when away from home
Require your signature twice
First Purchased
Then, when you cash a check or pay for a purchase
Commonly accepted throughout the world
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38. MONEY ORDERS
Form of payment that orders the issuing agency to pay the amount printed on the form to another party
A bank money order – by the bank
A postal money order – by the P.O.
An express money order - by various agencies
A telegraphic money order
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