• Activity 1………….Why Do You Need A Bank?

• Activity 2………The Many Services of a Bank

• Activity 3…The ABCs of a Chequing Account

• Activity 4………Opening a Chequing Account

• Activity 5……………….How to Write a Cheque

• Activity 6….Maintaining a Chequing Account

• Activity 7……The ABCs of a Savings Account

Basic Banking Services - Activity 1

ACTIVITY 1

Why Do YouNeed a Bank?

Overview

• Purposes of banks• The differences between banks and

credit unions• Safety of financial institutions• Banks as money management tools

2

CANADA DEPOSIT INSURANCE CORPORATION

• Established in 1967

• A Crown Corporation

• Protects depositors against certain losses, up to $100,000 per

depositor

Slide 1 – Canada Deposit Insurance Corporation Lesson Reference: Basic Banking Services, Activity 1 – Overhead 2 3

Basic Banking Services - Activity 2

ACTIVITY 2

The Many Servicesof a Bank

Overview

• Financial services provided by a bank• Bank employees• Services that might be of personal benefit• The impact of state and federal

regulations upon the security of a bank

4

REMITTANCE OPTIONS TO SEND AND RECEIVE MONEY

1. Money Transfer Organizations2. Bank Transfers3. Hand Delivery4. Mail5. Hawala6. Post Offices7. Stored Value Cards

Slide 1 – Remittance Options

Lesson Reference: Basic Banking Services, Activity 2 - Overhead 1 5

BANK OCCUPATIONS

• Tellers

• Personal Bankers

• Mortgage Lenders

• Operations Manager

• Branch Manager

Slide 2 – Bank Occupations Lesson Reference: Basic Banking Services, Activity 2 – Overhead 26

ELECTRONIC BANK SERVICESOnline banking is the fastest growing

Internetactivity in Canada.

Types of Services

• Bank Cards

• Automated Services

Protect Your Passwords!Slide 3 - Electronic Bank Services

Lesson Reference: Basic Banking Services, Activity 2 – Overhead 3 7

BANK CARD TYPES

Slide 4 - Bank Card Types Lesson Reference: Basic Banking Services, Activity 2 – Overhead 4

TYPE• ABM/Debit Cards

• Stored Value Cards

DESCRIPTION• Bank cards that allow for the

payment of goods and services to be subtracted directly from a bank deposit 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.8

AUTOMATED BANK SERVICES

• Direct Deposit

• Transfers between Accounts

• Transfers to a Third Party

• Online Banking

• Bank by Phone

• ABM

Slide 5 – Automated Bank Services

Lesson Reference: Basic Banking Services, Activity 2 – Handout 3 9

REGULATION OF ELECTRONICBANKING SERVICES

Electronic Funds Transfer CodeInitiated by the Ministry of Consumer and Corporate Affairs (CCAC) in 1989. It 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 are responsible to report any errors.Slide 6 - Regulation of Electronic Banking

Lesson Reference: Basic Banking Services, Activity 2 – Overhead 5 10

Basic Banking Services - Activity 3

ACTIVITY 3

The ABCs of a Chequing Account

Overview

• Purposes of a chequing account• Shopping for and comparing chequing

accounts

11

Slide 1 - Chequing Account Terms Lesson Reference: Basic Banking Services, Activity 3 – Handout 1

CHEQUING ACCOUNT TERMS

• Bank Statement• Cancelled Cheque• Cheque• Cheque Register/Ledger• Endorsement• Fee• Interest• Minimum Balance

• Outstanding Transactions

• Overdraft• Overdraft Protection• Payee• Reconciling a Bank

Statement• Transaction Limits

12

Slide 2 - Shopping Around Lesson Reference: Basic Banking Services, Activity 3 - Handout 2

SHOPPINGAROUND

(THINGS TO ASK ABOUT

WHENOPENING A CHEQUING ACCOUNT)

SERVICESLocation of bankLocation of ABMsBanking hoursMinimum balance requiredMinimum transactions or limitsInterest-bearing accounts?Other

COSTSNon-primary bank ABM transactionsIn-branch transaction feesPer-cheque feesOther chequing feesOverdraft protectionPrinting of cheques

13

Basic Banking Services - Activity 4

ACTIVITY 4

Opening a Chequing Account

Overview

• Chequing Account Application Process• The Application• Acceptable Forms of ID• The Signature Authorization Card

14

Slide 1 – Opening a Chequing Account

Lesson Reference: Basic Banking Services, Activity 4 – Handout 1

OPENING A CHEQUING ACCOUNT

15

Slide 2 - Commonly Accepted Forms of ID Lesson Reference: Basic Banking Services, Activity 4 – Handout 2

Primary ID*

• Driver’s Licence issued in Canada

• Canadian passport

• Certificate of Canadian Citizenship

• Permanent Resident card or Citizenship and Immigration Canada Form IMM 1000, IMM 1442, or IMM 5292

• Birth certificate issued in Canada

• Social Insurance card* Financial institutions' ID requirements may differ; check with the institution first

before applying for an account.

COMMONLY ACCEPTED FORMS OF ID

• Old Age Security card

• Certificate of Indian Status

• Provincial health insurance card (except Ontario, Manitoba, and PEI)

• Provincial ID card, bearing the individual’s photograph and signature, issued by authorities such as Insurance Corporation of British Columbia, Alberta Registries, Service New Brunswick, etc.

16

Slide 3 - Commonly Accepted Forms of ID Lesson Reference: Basic Banking Services, Activity 4 – Handout 2

Secondary ID*

• Employee photo ID card

• Canadian University/ College photo ID card

• Canadian bank or ABM/debit card

• Canadian credit card

• Canadian National Institute for the Blind (CNIB) client card

• Foreign passport

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

COMMONLY ACCEPTED FORMS OF ID

17

Slide 4 – Signature Authorization Card

Lesson Reference: Basic Banking Services, Activity 4 – Handout 3

SIGNATURE AUTHORIZATION CARD

18

Basic Banking Services - Activity 5

ACTIVITY 5

How to Write a Cheque

19

Slide 1 - Writing a Cheque Lesson Reference: Basic Banking Services, Activity 5 – Handout 1

WRITING A CHEQUE

20

Basic Banking Services - Activity 6

ACTIVITY 6

Maintaining aChequing Account

Overview

• Keeping a cheque register• Making a deposit into a chequing

account• Reconciling a bank statement• Maintaining a chequing account• Avoiding overdrafts

21

KEEPING A CHEQUE REGISTER

Slide 1 - Keeping a Cheque Register Lesson Reference: Basic Banking Services, Activity 6 – Handout 122

Slide 2 - Making a Deposit - Endorsing a Cheque

Lesson Reference: Basic Banking Services, Activity 6 – Handout 1

MAKING A DEPOSIT - ENDORSING A CHEQUE

23

The Back Side of a Cheque

Slide 3 - Making a Deposit - Completing a Deposit Slip Lesson Reference: Basic Banking Services, Activity 6 – Handout 1

MAKING A DEPOSIT - COMPLETING A DEPOSIT

SLIP

24

Slide 4 - Reconciling a Bank Statement Lesson Reference: Basic Banking Services, Activity 6 – Handout1

RECONCILING A BANK STATEMENT

25

OVERDRAFTS AND BOUNCED CHEQUES

Overdrafts and bounced cheques occur when you complete a financial transaction (e.g., write a cheque) for more than what is available in the account. Your financial institution may pay the amount and charge you a fee, known as an “overdraft fee” or a “nonsufficient funds fee.”

Tip: Avoid overdraft or non-sufficient funds fees by making a habit of monitoring the balance in your chequing account. Slide 5 – Overdrafts and Bounced Cheques

Lesson Reference: Basic Banking Services, Activity 6 – Overhead 1 26

Basic Banking Services - Activity 7

ACTIVITY 7

The ABCs of aSavings Account

Overview

• Purpose of a savings account• Shopping for a savings account• Applying for a savings account• Monthly bank statement checkup

27

REASONS TO SAVE

• Emergencies

• Future Purchases

• Future Investments

Slide 1 - Reasons to Save Lesson Reference: Basic Banking Services, Activity 7 – Overhead 128

SHOPPING 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 Lesson Reference: Basic Banking Services, Activity 7 – Overhead 229

OPENING A SAVINGS ACCOUNT

Slide 3 – Opening a Savings Account Lesson Reference: Basic Banking Services, Activity 7 – Overhead 330

Slide 4 – Bank Statement Lesson Reference: Basic Banking Services, Activity 7 – Overhead 4

BANK STATEMENT

31