1. Part 2: Accounts Dollars & Sense

2. Accounts Offered by Banks & Credit Unions Savings Certificates of Deposits (CD’s) Money Market Checking

3. Types of Savings Plans Section 2Savings Plans and Payment Methods

4. Types of Savings Plans Section 2Savings Plans and Payment Methods Three Limitations of a Certificate of Deposit (CD) Your money must stay in the account for one month to five or more years. You must pay a penalty for withdrawing your money early. There is usually a minimum deposit amount.

5. Types of Savings Plans Section 2Savings Plans and Payment Methods money market account a savings account that requires a minimum balance and earns interest that varies from month to month

6. Types of Checking Accounts Section 2Savings Plans and Payment Methods Regular Checking Accounts Interest- Earning Accounts Checking: A transactional bank account. Easy access to your money

7. Advantages of a Checking Account 1. Convenience 2. Safety 3. Proof of Payment 4. Record of Finances

8. Advantages of a Checking Account 1. Convenience Write checks at home Pay bills by mail Debit Card Online payments Swipe card and money is taken directly out of checking account Need Cash? = ATM

9. Advantages of a Checking Account 2. Safety Money on hand involves risk of losing it by fire, theft, or carelessness Less temptation to spend money Check can only be cashed by person or business to whom it is payable

10. Advantages of a Checking Account 2. Safety FDIC & NCUA Most banks & credit unions are members FDIC insures deposits up to $250,000

11. Advantages of a Checking Account 3. Proof of Payment Check is legal proof of your finances Payment to others Confirm with bank All checks are now electronically imaged

12. Advantages of a Checking Account 4. Record of Finances Check is legal proof of your finances How much are you spending Where your money is going How much you have remaining

13. Types of Checking Accounts - Overview Differ in what they offer to customers Annual Fee Minimum Balance Fee for each check written (Service Charge) Fee for ATM use (Service Charge) Interest earning accounts

14. Types of Checking Accounts Regular Checking Accounts No service charges Low Minimum Account Balance Typically No Interest on Account Student Checking Accounts Senior Checking Accounts

15. Types of Checking Accounts Interest Checking Accounts Most require Minimum Monthly Balance Most $500 or more Service Charges/Fees May require a specific # of checks written or debit card transactions May require direct deposit Monthly Service Charge Pays a Low Rate of Interest on Account

16. Your Task Complete and email the Bank Account Comparison Worksheet