Banking and Saving Financial Institutions Electronic Banking Checking
Banking and Saving Financial Institutions Electronic Banking Checking Accounts
Financial Institutions – An organization that provides services related to money. Commercial Banks Savings and Loan Associations Credit Unions
Commercial Banks Commercial Bank – a business owned by investors called stockholders or shareholders. Primary functions are to receive, transfer, and lend money to individuals, businesses and government. Often called Full Service Banks Open checking or savings accounts Take out a loan Rent a safe deposit box
Commercial Banks Most commercial banks are either statewide or nationwide. Bank of America Wells Fargo PNC A charter is the license authorizing a bank to operate. Federal or State Government regulations
Commercial Banks Community Bank – type of commercial bank that is locally owned and operated. Offer all standard services as state or national banks. Often easier to obtain a loan than larger banks. FDIC (Federal Deposit Insurance Corporation) Federal government agency Protect customers by insuring their deposits ($$$) Insures up to $250, 000
Savings and Loan Associations (S&L) Savings and Loan Associations – offer most of the services of Commercial Banks. Two Types: Mutual Savings and Loan Associations Owned and operated for their customers benefit Stock Savings and Loan Associations Owned by stockholders. Operate for a profit. Insured by the FDIC
Credit Unions Members Only Offer checking accounts to its members Nonprofit Organizations Operation costs are low… LOWER interest rates on Loans HIGHER interest rates on Savings Insured by the National Credit Union Association(NCUA)
Electronic Banking Automated Teller Machines (ATMs) Remote computer terminals Deposits Withdrawals Transfer Funds Account Balance Online Banking Manage personal bank accounts through the Internet: Make/Schedule Payments Transfer Funds Account Balance Mobile Banking Manage personal bank transactions through applications on smartphones or tablets. • Alerts & Text Banking • Mobile Banking Websites • Mobile Banking Apps
Bank Cards Debit Card (Check Card) Directly linked to your Checking Account with the bank. Allows you to make purchases without having cash on you. (POS Terminal) Can be used at ATM’s (need pin) Same effect as writing a check HOWEVER: Debit Card transactions are instant Checks clear when deposited.
Bank Cards ATM Card Credit Card Directly linked to your Checking Account Can ONLY be used at ATM’s and not used for POS purchases. Not directly linked to Checking Account Buy Now, Pay Later….
Personal Checking Accounts – A bank account that allows you to make deposits, write checks and withdrawal money. Safe place to keep your money. Purchase goods and services. Pay bills. Provides a record of deposits and receipts of payments.
Types of Checks Cashier’s Check – special type of check that the bank guarantees to pay. Purchased from bank and used to make a purchase to a person or business Paid with cash or withdrawal from checking account.
Types of Checks Certified Check – personal check from your own checking account that is stamped by the bank to verify its value. Certified checks are used when the payee does not accept personal checks. Usually charge a small fee to certify.
Types of Checks Money Order – payment for a specific amount of money payable to a specific payee. Do not contain personal information May be purchased if you do not have a checking account. Sold mainly in Financial Institutions or US Post Offices
Writing Checks A. Check Number C. Authorized Check Holder G. Dollar Amount in Words J. Reason for Check K. Routing Number D. Today’s Date E. Payee’s Name B. Bank’s Identification Number F. Dollar amount in numbers H. Signature of Check Holder I. Bank Account Number
Writing Checks
Deposit Slip Front (Dollars) This is any cash you take home instead of deposit. (Cents)
Deposit Slip Back
Checking Account Register
Writing Checks A. C. D. B. E. G. F. J. H. K. I.
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