chapter 7 banking section 1: financial services and
TRANSCRIPT
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Name:____________________________ Section:________________Personal Finance LAP 3
Banking
Chapter 7Banking
Section 1: Financial Services and Institutions
REFLECTION: DO YOU HAVE A BANK ACCOUNT? DOES IT HELP YOUR MONEY MANAGEMENT?
Main Idea
Why do you think this is important?
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CHOOSING A FINANCIAL
INSTITUTION
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VOCAB!
Direct Deposit: Saves time, money, and effort Safe
AUTOMATIC PAYMENTS:
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VOCAB!
DEBIT CARD: VOCAB!
AUTOMATED TELLER MACHINES (ATMs):
Financial institutions can charge fees
for the convenient us using ATM’s
A debit card is used with a PIN
ATM’s are used with a debit card
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Is a higher interest rate on a certificate of deposit worth giving up liquidity?
Would you trade the
convenience of getting cash from the ATM
near your office to lower
ATM fees?
Is it worth opening a checking
account that has no fees-but does not
earn interest, if you must keep
a minimum balance?
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COMMERCIAL BANK: VOCAB!
SAVINGS AND LOAN ASSOCIATION (S&L): VOCAB!
CREDIT UNION: VOCAB!
NON-DEPOSITORY INSTITUTIONS
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BE CAREFUL OF THESE FINANCIAL BUSINESSES
Where can you get the highest rate of on your savings?
Where can you obtain a account with low (or no) fees?
Will you be able to money from the institution—with a credit card or another type of loan—when you need it?
Do you need an institution that offers free advice?
Is the institution FDIC- or SAIF- ?
Does the have convenient locations?
Does it have banking services?
Does it have any special banking that you might need?
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HIGHER ORDER THINKINGAnalyze why it might be worth a person’s time to open a checking or savings account at a bank rather than using
a check-cashing outlet.
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Chapter 7Banking
Section 2: Types of Saving Plans
Main Idea
Why do you think this is important?
TYPES OF SAVING PLANS
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CERTIFICATE OF DEPOSIT: VOCAB!
MONEY MARKET ACCOUNT: VOCAB!
THREE LIMITATIONS OF A CERTIFICATE OF DEPOSIT (CD)
The FDIC insure money market accounts up to $250,000
You can purchase Series EE Bonds from the government.
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RATE OF RETURN COMPOUNDING ANNUAL PERCENTAGE RATE (APR)
INFLATION
TAX CONSIDERATIONS
LIQUIDITY
SAFETY
RESTRICTIONS AND FEES
RATE OF RETURN: VOCAB!
COMPOUNDING: VOCAB!
ANNUAL PERCENTAGE YIELD (APY): VOCAB!
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RESTRICTIONS
FEES AND CHARGES
INTEREST
SPECIAL SERVICES
OVERDRAFT PROTECTION: VOCAB!
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Check Register
If a check is lost or stolen , you can ask the bank to issue a
STOP-PAYMENT ORDER: VOCAB!
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Blank Check Template
Name_______________________ DATE________________
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PAY TO THE ORDER OF _________________________________________ $ ______________
___________________________________________________________ DOLLARS
Memorial Bank 1221 Main Street Hudson, NH 03051
FOR ___________________________ ______________________________
56508580 8787401197 0101
Name_______________________ DATE________________
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PAY TO THE ORDER OF _________________________________________ $ ______________
___________________________________________________________ DOLLARS
Memorial Bank 1221 Main Street Hudson, NH 03051
FOR ___________________________ ______________________________
56508580 8787401197 0102
Name_______________________ DATE________________
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PAY TO THE ORDER OF _________________________________________ $ ______________
___________________________________________________________ DOLLARS
Memorial Bank 1221 Main Street Hudson, NH 03051
FOR ___________________________ ______________________________
56508580 8787401197 0103
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Deposit slips
Your Name:
Account #
Date:
Sign here if cash received from deposit
CURRENCY
SUBTOTAL
LESS CASH RECEIVED
CHECK
TOTAL
Deposit slips
Your Name:
Account #
Date:
Sign here if cash received from deposit
CURRENCY
SUBTOTAL
LESS CASH RECEIVED
CHECK
TOTAL
Deposit slips
Your Name:
Account #
Date:
Sign here if cash received from deposit
CURRENCY
SUBTOTAL
LESS CASH RECEIVED
CHECK
TOTAL
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ENDORSEMENT: VOCAB!
INFORMATION ON YOUR BANK STATEMENT
BANK RECONCILIATION: VOCAB!
Use a form to determine your true balance .
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Banks make money by making loans. The amount of money a bank can lend is affected by the reserve requirement
set by the Federal Reserve
HIGHER ORDER THINKINGConsider whether you would prefer to have a separate checking and savings account, or an interest-earning
checking account. Explain your decision .