1. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved.

2. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 14 Banking What types of financial services might help you to better manage your cash flows?

3. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Understanding the services provided by financial institutions will help you choose the best options to manage your money wisely. Chapter 14 Banking

4. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. direct deposit automated teller machine (ATM) debit card commercial bank savings and loan association (S&L) credit union certificate of deposit (CD) money market account rate of return compounding annual percentage yield (APY) overdraft protection stop-payment endorsement bank reconciliation Chapter 14 Banking

5. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 14 Banking

6. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Section 1Financial Services and Institutions Identify types of financial services. Describe the various types of financial institutions. Describe problematic financial businesses. Chapter 14 Banking

7. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. How to Manage Your Cash Section 1Financial Services and Institutions Chapter 14 Banking

8. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Types of Financial Services Section 1Financial Services and Institutions Chapter 14 Banking Categories of Financial Services Savings Payment Services Borrowing Other Financial Institutions

9. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Electronic Banking Services Section 1Financial Services and Institutions Chapter 14 Banking Automatic Payments With authorization, funds are withdrawn from your account Make sure there are sufficient funds in your account Check your bank statement to make sure the transfer is correct

10. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Electronic Banking Services Section 1Financial Services and Institutions Chapter 14 Banking Plastic Payments Electronic payments Online payments Stored-value cards Smart cards

11. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Evaluating Financial Services Section 1Financial Services and Institutions Chapter 14 Banking Is a higher interest rate on a certificate of deposit worth giving up liquidity? Would you trade the convenience of getting cash from the ATM near your office for lower ATM fees? Is it worth opening a checking account that has no fees—but does not earn interest, if you must keep a minimum balance? Questions to Ask

12. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Types of Financial Institutions Section 1Financial Services and Institutions Chapter 14 Banking Non-Depository Institutions Life Insurance Companies Investment Companies Finance Companies

13. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Problematic Financial Businesses Section 1Financial Services and Institutions Chapter 14 Banking Be Careful of These Financial Businesses Pawn Shops Check Cashing Outlets Payday Loans Rent-to- Own Centers

14. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Comparing Financial Institutions Section 1Financial Services and Institutions Chapter 14 Banking Where can you get the highest rate of interest on your savings? Where can you obtain a checking account with low (or no) fees? Will you be able to borrow money from the institution—with a credit card or another type of loan—when you need it? Do you need an institution that offers free financial advice? Is the institution FDIC- or SAIF-insured? Does the institution have convenient locations? Does it have online banking services? Does it have any special banking services that you might need?

15. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Comparing Financial Institutions Section 1Financial Services and Institutions Chapter 14 Banking

16. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Analyze why it might be worth a person’s time to open a checking or savings account at a bank rather than using a check-cashing outlet. Answers may vary but the students should realize that many banks offer free checking or savings accounts meaning you can cash a check for free. Section 1Financial Services and Institutions Chapter 14 Banking

17. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Section 2Savings Plans and Payment Methods Compare the costs and benefits of different savings plans. Explain features of different savings plans. Compare the costs and benefits of different types of checking accounts. Use a checking account effectively. Chapter 14 Banking

18. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Types of Savings Plans Section 2Savings Plans and Payment Methods Chapter 14 Banking

19. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Types of Savings Plans Section 2Savings Plans and Payment Methods Chapter 14 Banking You can purchase Series EE Savings Bonds from the federal government.

20. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Types of Checking Accounts Section 2Savings Plans and Payment Methods Chapter 14 Banking Checking Accounts Regular Checking Accounts Activity Accounts Interest- Earning Accounts

21. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Using a Checking Account Section 2Savings Plans and Payment Methods Chapter 14 Banking Check Register

22. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Using a Checking Account Section 2Savings Plans and Payment Methods Chapter 14 Banking

23. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Using a Checking Account Section 2Savings Plans and Payment Methods Chapter 14 Banking Information on Your Bank Statement Deposits Checks You Have Written ATM Withdrawals Debit Withdrawals Interest Earned and Fees

24. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Using a Checking Account Section 2Savings Plans and Payment Methods Chapter 14 Banking Organizations Other Payment Methods Certified Check Cashier’s Check Money Order Travelers Check Prepaid Travelers Cards

25. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Financial Institutions and Your Money Section 2Savings Plans and Payment Methods Chapter 14 Banking Banks make money by making loans. The amount of money a bank can lend is affected by the reserve requirement set by the Federal Reserve.

26. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Consider whether you would prefer to have a separate checking and savings account, or an interest-earning checking account. Explain your decision. Sample answer: separate accounts, to avoid a minimum balance or for higher interest rates. Section 2Savings Plans and Payment Methods Chapter 14 Banking

27. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. The Federal Reserve System Chapter 14 Banking The Fed has the responsibility of monitoring the economy.

28. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 14 Banking

29. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 14 Banking

30. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. End of