banking (part 1) mr. stasa – willoughby-eastlake city schools ©
TRANSCRIPT
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