Banking(Part 1)

Mr. Stasa – Willoughby-Eastlake City Schools ©

https://www.youtube.com/watch?v=ds39cjJhTpY

ESSENTIAL QUESTION #7

Only 55% of teenagers keep their money at a bank or credit union. Why do you think some teenagers may be hesitant to keep their money at a bank?

What is this image?

What is this?

Financial Services OfferedOnline Banking, Online Brokerage, Checking

Accounts, Savings Accounts, Certificates of Deposit (CDs), Individual Retirement Accounts (IRAs), Savings

Bonds, Credit Cards, Check Cards, Gift Cards, Payroll Cards, Commercial Prepaid Cards, Auto Loans, Boat Loans,

RV Loans, Student Loans, Other Loans, Home Mortgages,

Mortgage Refinance Loans, Home Equity Loans, Military Bank, Student Centers, Accessible Banking, Small Business Banking Services, Merchant Services ,

Home Buying, Investment Services, IRAs, Mutual Funds,

529 College Savings Plans, Life Insurance (various types),

Long-Term Care Insurance, Homeowner’s Insurance, Renter’s Insurance, Condo Insurance, Auto

Insurance, Supplemental Income Insurance, Foreign Currency Exchange, Traveler’s Checks, International

Wire Transfers, and More

Why would you save your money using a bank account?

1. Money is safe Fires and theft

2. Money earns interest

3. Money is insured You will not lose your money if your

bank folds

Financial Services

Financial services are the products and services offered by financial institutions (banks)Examples include:

Checkbook issuingATMsOnline bankingDebit cardsFinancial advice

Why use a bank?

Here’s What You Said About Banks vs. Credit Unions…

Credit union is non-profit unlike banks credit unions are non-profit organizations. Their

profits are distributed right back to their members. Because of this, credit unions often charge lower fees than banks and pay higher interest rates on savings accounts, money market accounts, interest checking accounts and certificates of deposit

Credit unions are non-profit organizations. Credit unions offer lower fees then banks, and pay higher interest rates.

Fees and loan rates at credit unions are generally lower, while interest rates returned are generally higher, than banks and other for-profit institutions.

Banks always find ways to boost their profit, but in a credit union its non-profit and any profit they make goes right back the the individual.

Credit Unions are a not for profit organization. credit unions are non-profit organizations. Their profits are

distributed right back to their members. Because of this, credit unions often charge lower fees than banks and pay higher interest rates on savings accounts, money market accounts, interest checking accounts and certificates of deposit.

Credit Unions are non-profit organizations. banks let you deposit and with drawl money.

credit union safer with members

Banks vs. Credit Unions A bank is a for-profit financial

institution where you can deposit your money. Owned by investors who buy its

stock Anyone can open an account (all

ages) Serve people and businesses Offer a variety of services

Banks vs. Credit Unions

A credit union is a not-for-profit financial institution where you can deposit your money Owned by its customers Only members (and immediate family

members) of special groups can join Churches, teachers, firefighters, etc.

Fees and loan interest rates are typically lower than banks

Offer same types of services as banks http://www.youtube.com/watch?v=dSSH82DdMH4

Banks: FDIC (Federal Deposit Insurance Corporation) insures up to $250,000

Credit Unions: NCUA (National Credit Union Administration) insures up to $250,000

Account Insurance

http://www.youtube.com/watch?v=jpPcRojsO74

http://www.youtube.com/watch?v=lDvCLY3gxNA

Internet Banks vs. Traditional Banks

Advantages of Internet Banking: https://

www.youtube.com/watch?v=oADxUX4STjE

Savings Account Comparison: Ally:

http://www.ally.com/bank/online-savings-account/

Chase: https://chaseonline.chase.com/resources/RateSheetForCons00134132015.pdf

Failing Banks

http://www.youtube.com/watch?v=TAE8i40A5uI

Pros & Cons of Banks & Credit Unions

Credit Unions

Keep fees at a minimum

Offer many services for free

Pay a higher interest rate to their customers

Charge their customers a lower interest rate for loans

Must belong to a specific group to join

Banks

Charge high fees Offer most or all

services for a fee Paying customers a

low interest rate on deposits

Charge its customers a high rate of interest for loans.

ATMS are more conveniently located

Larger range of services

More recognized

Careers in Banking

BANK TELLER ($25,000 annually or $11/hr.)

Skills required: Communication skills Mathematics Problem-solving Decision-making Cash handling Technology

Education required: High School diploma and on-job training

Future careers: Loan officer Sales Rep. Debt counselor

SAVINGS ACCT

CHECKING ACCT

CERTIFICATE OF DEPOSIT (CD)

MONEY MARKET