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Activities

ACTIVITY 1: Why Do You Need a Bank?

ACTIVITY 2: The Many Services of a Bank

ACTIVITY 3: The ABCs of a Checking Account

ACTIVITY 4: Opening a Checking Account

ACTIVITY 5: How to Write a Check

ACTIVITY 6: Maintaining a Healthy Checking Account

ACTIVITY 7: The ABCs of a Savings Account

2 BBS - Activity 1

ACTIVITY 1

Why Do YouNeed a Bank?

Overview

• Purposes of Banks• Types of Financial Institutions• Safety of Financial Institutions• Privacy of Financial Institutions

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FDICFEDERAL DEPOSIT INSURANCE

CORPORATION

• Established in 1933.• Federal agency.• Protects depositors against certain losses up to $100,000 per depositor.

Slide 1 - FDIC

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SAFETY OF FINANCIAL INSTITUTIONS

COMMERCIAL BANKS CREDIT UNIONS

Slide 2 - FDIC/NCUA

5 BBS - Activity 2

ACTIVITY 2

The Many Servicesof a Bank

Overview

• Identify financial services provided by a bank.

• Decide on services of personal benefit.• Recognize the impact of state and federal

regulations upon the security of a bank.

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ELECTRONIC BANK SERVICES

Types of Services

•Bank Cards

•Automated Services

Regulation of Electronic Services

Slide 1 - Electronic Bank Service

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BANK CARD TYPES

Slide 2 - Bank Card Types

TYPE• Check Cards or

Debit Cards

• Stored Value Cards

DESCRIPTION• Bank cards that allow for the

payment of goods and services to be subtracted directly from a bank account.

• Can be used with merchants that take major credit cards—known as point of sale (POS) transactions.

• Bank cards with preset, limited value.

• Used to pay for goods and services.

• Alternative to cash.

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REGULATION OF ELECTRONICBANKING SERVICES

Electronic Fund Transfer Act (1978)Protects consumers using any type of electronic banking from loss and protects their privacy.

Banks must:• Offer consumers a record or receipt for all

computer transactions.• Investigate errors and report to consumer within

ten days of error notification.

Customers must be responsible to report any errors.

Slide 3 - Regulation of Electronic Banking

9 BBS - Activity 3

ACTIVITY 3

The ABCs of a Checking Account

Overview

• Purposes of a Checking Account• Shopping for a Checking Account

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1. Location of the bank 2. Location of ATMs 3. Banking hours 4. Fees associated with the checking account:

How many? How much? When? Some account fees may include:

a) Non-primary bank ATM transactions

b) In-branch transaction feesc) Per-check fees

5. Available overdraft protection 6. Cost of checks 7. Minimum balance required 8. Minimum transactions or limits 9. If they have interest-bearing accounts10. Check color and design11. Other? Slide 1 - Shopping Around

SHOPPINGAROUND

(THINGS TO ASK ABOUT

WHENOPENING A CHECKING ACCOUNT)

AREAS OF INTEREST

11 BBS - Activity 4

ACTIVITY 4

Opening a Checking Account

Overview

• Checking Account Application Process• The Application• Acceptable Forms of ID• The Signature Authorization Card• Deposit Options

12 Slide 1 - Commonly Accepted Forms of ID

Primary ID*

•Photo Driver’s License issued

within the U.S. or Canada

•State Non-Driver Photo ID

•Photo Learner’s Permit

•Government Photo ID

•U.S. Passport

•Non-U.S. Passport

•Resident Registration Card

•Mexican Consular ID (Matricula Consular)

* Financial institutions' ID requirements may differ; check with the institution first before applying for an account.

COMMONLY ACCEPTED FORMS OF ID

•Naturalization Certificate

•Employee Photo ID (from a recognizable employer)

•Photo Trade License (barber, plumber, electrician, etc.)

•Student Photo ID (college/trade school)

•Medicare Card (must be 65 or older)

13 Slide 2 - Commonly Accepted Forms of ID

Secondary ID*

•Pay Stub

•Car Registration

•Mortgage Statement

•Letter of Introduction from Bank, Embassy, or well-known Employer

•Welfare Card

•Supplemental Health Insurance Card

* Financial institutions' ID requirements may differ; check with the institution first before applying for an account.

COMMONLY ACCEPTED FORMS OF ID

•Foreign Driver’s License

•State/Local Gun Permit

•Utility Bill (Name and address

of individual account should be listed)

•Current Bank Statement

•National Credit Card

•Bank-issued Debit or Check Card

14 BBS - Activity 5

ACTIVITY 5

How to Write a Check

15 Slide 1 - Writing a Check

WRITING A CHECK

16 BBS - Activity 6

ACTIVITY 6

Maintaining a Healthy

Checking Account

Overview

• Keeping a Check Register/Ledger• Making a Deposit• Check Endorsement Process• Deposit Slip Procedure• Reconciling a Bank Statement

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KEEPING A CHECK REGISTER (Practice)

Slide 1 - Keeping a Check Register

18 Slide 2 - Making a Deposit - Endorsing a Check

MAKING A DEPOSIT - ENDORSING A CHECK

Restrictive Endorsement(most secure)

Blank Endorsement(least secure)

Endorsement to a third party

DirectionsEndorse each of the checks shown based on the description.

19 Slide 3 - Making a Deposit - Completing a Deposit Slip

MAKING A DEPOSIT - COMPLETING A DEPOSIT

SLIP

20 Slide 4 - Reconciling a Bank Statement

RECONCILING A BANK STATEMENT

21 BBS - Activity 7

ACTIVITY 7

The ABCs of aSavings Account

Overview

• Purpose of a Savings Account• Shopping for a Savings Account• Savings Account Application• Monthly Bank Statement Checkup

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REASONS TO SAVE

• Emergencies

• Future Purchases

• Future Investments

Slide 1 -Reasons to Save

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SHOPPINGS FOR A SAVINGS ACCOUNT

Factors to consider:• Safety• Risk• Liquidity• Minimum Account Balance Requirements• Fees and Service Charges• Interest Rate • Returns (Earnings)• Automatic Transfer• Direct Deposit

Slide 2 - Shopping for a Savings Account