1. 2.2.1.G2 Introduction to Depository Institutions Advanced Level

2. 2.2.1.G2 © Take Charge Today – August 2013 – Introduction to Depository Institutions – Slide 2 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona What is a Depository Institution? Depository institution – businesses that provide __________ services What is the name of one depository institution in your community?

3. 2.2.1.G2 © Take Charge Today – August 2013 – Introduction to Depository Institutions – Slide 3 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Types of Depository Institutions Two types of depository institutions are: Commercial BankCredit Union http://www.youtube.com/watch?v=dSSH82DdMH4 __________________ Open to ___________ who wants to utilize a depository institution Offer______________financial services Usually the ______________ depository institutions Not-for-profit – owned by ________ Have membership qualifications – members must share a “__________ __________” Offer many ___________ but usually not as many as a bank Are often able to pay ___________ interest rates and charge ______________ fees

4. 2.2.1.G2 © Take Charge Today – August 2013 – Introduction to Depository Institutions – Slide 4 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Location Does the depository institution identified in your community have more than one location or branch? Physical location or only ________? _________ locations or just one? Locations all ________ the U.S. or only in your state or city/town? Do you have ___________ to get to a location?

5. 2.2.1.G2 © Take Charge Today – August 2013 – Introduction to Depository Institutions – Slide 5 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona What role does the Federal Reserve play? The Federal Reserve System (known as _____________) distribute new coins and currency into the economy. They control they ____________ policy. Did you know if you make a deposit of _____________or more into a bank account, the bank must notify the _____________ Department?

6. 2.2.1.G2 © Take Charge Today – August 2013 – Introduction to Depository Institutions – Slide 6 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Depository institutions keep your money safe Offer a ______ and _________ place to store your money –Security (safes, secure networks, etc.) –___________________ Federal Deposit Insurance Corporation (FDIC) National Credit Union Administration (NCUA) Insures _________and other types of institutions other than credit unions $250,000 per depositor, per insured institution, for each account ownership type Insures __________ ___________ Same as FDIC

7. 2.2.1.G2 © Take Charge Today – August 2013 – Introduction to Depository Institutions – Slide 7 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Safe Deposit Boxes – available at most banks and credit unions _________ and __________ Can be accessed only by the __________ of the box Can store ____________ (coins, jewelry) and important _________ (mortgage loan papers) The best way to keep those valuables safe but _______________

8. 2.2.1.G2 © Take Charge Today – August 2013 – Introduction to Depository Institutions – Slide 8 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Transaction and Savings Tools ________ _______ Safe-Deposit Box __________

9. 2.2.1.G2 © Take Charge Today – August 2013 – Introduction to Depository Institutions – Slide 9 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Depository institutions offer the ability to earn interest ____________ - the price paid for using someone else’s money You can ______ interest or____ ______________ interest The __________ of interest earned or charged is determined by the __________ ______(percentage rate used to calculate interest, usually an annual rate)

10. 2.2.1.G2 © Take Charge Today – August 2013 – Introduction to Depository Institutions – Slide 10 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Accounts that help you manage your money May or may not earn ___________ The 2 most common accounts: ________ Account

11. 2.2.1.G2 © Take Charge Today – August 2013 – Introduction to Depository Institutions – Slide 11 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Checking AccountSavings Account Should you look for a low or high interest rate on a savings account? Provides __________ access to funds for transactions Use deposited money _____________ by: Writing checks Using a debit card Withdrawing cash Electronically transferring money Some ________ interest but most do not An account for money not intended to be used for _________ expenses Access to money is more ____________ than a checking account ___________ interest

12. 2.2.1.G2 © Take Charge Today – August 2013 – Introduction to Depository Institutions – Slide 12 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona What do depository institutions do with your money? Banks and credit unions use your money to __________ __________to consumers and businesses Loans to businesses are called ______________ loans They charge __________ on the loans they make

13. 2.2.1.G2 © Take Charge Today – August 2013 – Introduction to Depository Institutions – Slide 13 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Credit __________ money _________ Credit cards You will pay back the money borrowed ______ interest Consumer Finance companies, which are often advertised on TV, are also known as ________ _________companies.

14. 2.2.1.G2 © Take Charge Today – August 2013 – Introduction to Depository Institutions – Slide 14 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Other Services Information, advice, and assistance with a wide range of financial topics Store valuable personal items Secure types of payments such as traveler’s checks, certified checks, cashier’s checks, and money orders

15. 2.2.1.G2 © Take Charge Today – August 2013 – Introduction to Depository Institutions – Slide 15 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Using depository institution services Determine what __________ are needed to use the service Having an ____________ may be a requirement to use certain services Most ____________ a parent/guardian signature to open an account

16. 2.2.1.G2 © Take Charge Today – August 2013 – Introduction to Depository Institutions – Slide 16 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Features of Depository Institutions Services offered by depository institutions may offer many different features __________ banking Mobile banking __________ cards ATMs In small groups: What is it? What can you do? 1 piece of additional information

17. 2.2.1.G2 © Take Charge Today – August 2013 – Introduction to Depository Institutions – Slide 17 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Online Banking Complete certain transactions from a secured ______________ site Use a username and password Access account information _______________ Transfer _________ Pay _______/set up recurring bill payment Apply for __________

18. 2.2.1.G2 © Take Charge Today – August 2013 – Introduction to Depository Institutions – Slide 18 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Mobile Banking Apps that many depository institutions have developed that allow online banking access from ___________ such as smartphones, tablets, and other_____________devices Usually offers the ___________ services as online banking

19. 2.2.1.G2 © Take Charge Today – August 2013 – Introduction to Depository Institutions – Slide 19 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Debit Cards A __________ card that is electronically connected to the cardholder’s depository institution _______________ Function in the same manner as ___________ but faster and more portable Use a Personal Identification Number (PIN) or signature to _______________ transactions

20. 2.2.1.G2 © Take Charge Today – August 2013 – Introduction to Depository Institutions – Slide 20 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Automated Teller Machines (ATMs) A machine that allows individuals to complete _____________ transactions from the machine without human assistance ___________ and _________ money _____________ money Check account balance Accessed via an _______ card (usually the debit card) and PIN

21. 2.2.1.G2 © Take Charge Today – August 2013 – Introduction to Depository Institutions – Slide 21 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Contactless Payment Transactions completed with no physical connection between the payment device and the Point of Sale (POS) device or store clerk “Wave” a card in front of a sensor for fast and easy transactions Not all merchants have this technology

22. 2.2.1.G2 © Take Charge Today – August 2013 – Introduction to Depository Institutions – Slide 22 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Which feature would you find the most appealing? Cast your vote!

23. 2.2.1.G2 © Take Charge Today – August 2013 – Introduction to Depository Institutions – Slide 23 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Fees Different types of fees may be charged ________ will vary between institutions and within different services at the same institution One of the most important ____________ to consider when choosing a depository institution Charged if you withdraw more money from your account than is available Charge for using an ATM that belongs to another depository institution Some accounts have a minimum account balance; fee charged if you go below that balance

24. 2.2.1.G2 © Take Charge Today – August 2013 – Introduction to Depository Institutions – Slide 24 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona How do you manage fees? _____________ fees when choosing a depository institution When opening an account, ask for a list of __________ Most are ________________ Manage your account __________

25. 2.2.1.G2 © Take Charge Today – August 2013 – Introduction to Depository Institutions – Slide 25 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona How do you choose one depository institution over another? Choose one that meets your goals! Analyze the following factors: Type of ____________ institution _____________Insurance Services offered Interest ______ offered Features offered _______ charged

26. 2.2.1.G2 © Take Charge Today – August 2013 – Introduction to Depository Institutions – Slide 26 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Summary Depository institutions offer many benefits: A safe place to store money A way to manage cash The opportunity to earn interest Services/features offered and fees charged vary between and within every depository institution Research different depository institutions and choose one that will help you reach your goals