Bank On It FDIC Money Smart for Young

Bank On It FDIC Money Smart for Young Adults Building: Knowledge, Security, Confidence

What Do Banks Do? • Place to keep money • Loans • Offer many financial services 2

Why keep your money in a bank? • • Safety Convenience Security Build your financial future 3

Types of Financial Institutions • Bank • Credit Union • Thrift (or savings and loan) 4

How Do I Open a Bank Account? Your bank should meet your needs, so ask yourself: • • What services does it offer? Is it near my home? Where are its ATMs? What are the fees for different accounts? • Is it insured by the FDIC? 5

Banking Terms Deposit put money in the bank Withdrawal take money out of the bank Balance how much money you have in the bank Fees money charged for services Overdraft withdrawing more money than you have in your account 6

Opening an account: Verification Proving your identity: – Photo ID, state-issued ID card – Passport – Driver’s license – SSN, 7

Deposit Accounts • Checking accounts – Write checks to pay bills or buy goods or services – Linked to an ATM/Debit card • Savings accounts – Earn more money on your deposits – Can be linked to an ATM/Debit card 8

Interest 9

Other Banking Services • • Direct deposit Money orders Electronic banking ATMs Money transfers Debit cards Loans 10

Protect Yourself from Identity Theft • Don’t give out personal information • Check your credit report each year • Shred financial papers 11

Check cashing places • Check-Cashing: At a bank or credit union, you do not have to pay a fee. • Many check-cashing businesses charge 10% (of the check) or more to cash your check. 12

Credit Unions • Non-profit, owned by members • You can join a credit union based on where you and your family live, work, worship, or the associations you or your family belong to. • Higher returns 13

Banks • • https: //www. huntington. com/ https: //www. bankofamerica. com/ http: //www. fallsccu. org/ http: //www. onemainfinancial. com/USCF A/CFA/portal/Home. do 14

Deposits: 15

Withdrawal: 16

How to write a check 17

Endorsing a check • Blank endorsement- Sign your name the same way it appears on the front of the check. • Restrictive endorsement- the check may only be deposited to either the bank or to your specific bank account. 18

Endorsing a check • Special endorsement - allows you to sign your check over to someone else who may then deposit it or cash it. 19

What kind of endorsement is this? 20

Balancing a check book 21

Money orders • A money order is a payment order for a pre-specified amount of money. • more trusted method of payment than a check. 22

ATMS: • Deposit money into a savings or checking account • Withdraw money • Check the balance • Transfer money between your accounts 23