Module 1 Bank On It - Online - Dr. Scott Street PDF

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Online - Dr. Scott Street...

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Insured Financial Institutions: ● Operate under federal and state laws and regulations ● Accept deposits, make loans, pay checks, and provide other financial services ● Two major types: ○ Banks and thrifts: ■ Guaranteed by Federal Deposit Insurance Corporation (FDIC) ○ Credit Unions: owned by their members- must become a member to save or borrow money ■ Insured by the National Credit Union Administration (NCUA) Why would you keep your money in a bank? ● Want to build a solid financial future; access to affordable credit for car, home, or small business loan ● Security: Federal consumer protection laws protect you when you do business with the bank and the FDIC insures your money up to the legal amount ● Save money: cheaper than cashing checks at check cashing services ● Convenience: get cash out of the bank account 24/7 through ATMs and debit cards, direct deposit (checks available sooner than if you were to deposit in person) ● Safe keeping: money at home can get lost, stolen, or destroyed in a fire Bank Tour ● Customer Service Representative: ○ Help you open your account ○ Explain bank services ○ Answer general questions ○ Provide written info explaining products offered by the bank ○ Refer you to someone who may be able to help you further ● Bank Teller: main contact at the bank, stands behind the counter ○ Deposit your money ○ Cash your checks ○ Answer questions ○ Refer your to person who can help you with other services ● Loan Officer: ○ Take applications for loans offered at a bank ○ Answer your question ○ Provide written info explaining loan products ○ Help you fill out a loan application ● Branch Manager: supervises all bank operations that take place at the branch and helps fix problems that other bank employees are struggling/unable to solve Deposit Accounts ● Insured Deposit Accounts ○ Checking Account:

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Allows you to pay bills and make purchases with the money you deposited into the account ■ Acces funds through debit card, online bill pay, or ATM ○ Savings Account: ■ Earns interest (a percentage of your balance that the bank pays you for keeping your money at that bank) ■ Not generally intended for day-to-day use ■ May be charged for more than a certain number of withdrawals for a month Opening and Maintaining a Bank Account 1. Open the account ○ Checking or savings ○ Account fees? ○ Bring photo ID, social security number ○ If you are not a US Citizen, some banks accept other forms of photo ID i. Matricular Consular Card ii. Resident Alien Card (Green Card) iii. Passport ○ If you are unable to open an account, check for eligibility for “second chance” checking programs 2. Make deposits and withdrawals ○ Deposit: money you add to your account via direct deposit, ATM, or bank teller i. Cash is usually available immediately ii. Checks may be partially available ○ Direct Deposit: paycheck or benefit check is electronically transferred and directly deposited into your account, immediately available ○ Balance: the amount of money you have in your bank account i. If you overdraw your account, you will be charged a fee ○ Withdrawals: money you take out of your account i. Debit card, checks, giving teller withdrawal slip, or ATM 3. Record transactions, interest, and fees ○ Interest: i. Generally earned through savings account ○ Fees: i. Monthly maintenance fees: keeping your account open 1. Some will waive this fee if you have a regular direct deposit or if you keep a minimum balance in your account ii. Overdraft fees: 1. Bouncing a check, withdrawing from ATM before check clears, or using a debit card to buy something that costs more than what is in your account 4. Keep track of your balance ○ All transactions should be recorded, even if you receive interest

Additional Bank Services: ● Money Transfer: sends money electronically from one bank to another ○ Can be transfered to banks outside of the US ● Remittance: a specific type of money transfer that goes to a bank or a person in another country ○ Ask about currency exchange rate and additional fees charged ● ATM: a kiosk where you can deposit, withdraw, or transfer money from one account to another 24 hours a day ○ Some ATMS include fees for services ● Debit Card (check card): a plastic card tied to your checking account that allows you to pay for goods & services at stores that accept credit cards ● Electronic Banking: allows you to access your account and conduct basic banking services over the phone, computer, or on a smartphone ○ Check account balances ○ Transfer money ○ Access account history ○ Stop payment on a check ○ Obtain information on branch hours ○ Report lost, stolen, or damaged card ● Loan: money borrowed from a bank with a written promise to pay it back later ○ Fees and interest charged on loans ● Money Order: used to pay bills or make purchases when cash is not accepted ○ Similar to a check ○ Shop around for the best price Privacy Laws and Regulations: ● Privacy Notices: received when you initially open your bank account and every year after and explain: ○ What personal financial information the company collects ○ Whether the company intends to share your personal financial information with other companies ○ What you can do, if the company intends to share your personal financial information, to limit that sharing ○ How the company protects your personal financial information ● Opting out: you have the option to opt-out of certain information sharing by your bank...