chapters 9 & 10 where to stash your cash. learning targets students can… explain how banks...
TRANSCRIPT
CHAPTERS 9 & 10
WHERE TO STASH YOUR CASH
LEARNING TARGETSStudents can…
• Explain how banks make a profit• Identify types of checking accounts• Fill out a deposit slip• Write a check• Describe the different check endorsements• Record withdrawals and deposits in a check register• Reconcile a bank statement• Explain how debit card and ATM transactions work• Explain the benefits of online banking & bill pay
Banks are a business; they
work to make a profit.
HOW DO THEY MAKE A
PROFIT???
HOW DO THEY MAKE A PROFIT?
•Fees•Overdraft Charges•Interest on loans
Banks charge interest to borrowers, but pay a interest to those who deposit money into their acc’t. The difference is their profit.
FDIC = Federal Deposit Insurance Corporation; they insure your deposits.
Advantages of Using Checks
* Safe* Convenient
* Keeps a record of your transactions
Checking Accounts
Must be 17-18 years old to open an account.
Overdrawing/Bounced Checks = writing a check for more money than you have in your account.
Types of Checking Accounts
1) Interest Bearing Checking
2) Non-Interest Bearing Accounts
Interest Bearing Checking
• Banks lend money deposited into your account and in return; you earn interest.•Must have a min. balance in
account.
Non-Interest Bearing Accounts
•No minimum balance• Receive no interest• Service Charge = a charge
placed on each check you write or it can be a flat fee.
Electronic Banking
EFT = Electronic funds transfer ATM = Automated teller machine
• To use the ATM, you must have a PIN #.
•PIN # = A secret number that identifies you at the ATM.
ATM functions
•make deposits•make withdrawals• transfer money from one acct. to
another• buy stamps• check account balance
Debit Cards/Check Cards
•Similar to a credit card except money is taken electronically out of your checking acc’t.
Automatic Withdrawal • You give a creditor
permission to automatically withdraw money from your checking to pay a bill.
Direct Deposit• Your employer deposits
your paycheck directly into your account at the bank.
Other Banking Terms & Services
Canceled Check
A check the bank has paid (cleared).
Certified Check A personal check that has been stamped “certified” (meaning it is good) by a bank official.
Cashiers Check
A bank check signed by a bank official.
Money Orders Used if you don’t have a checking acc’t. or do not wish to use cash.
Safe Deposit Box
A locked box at the bank that contains your valuables.
INTEREST
Compound Interest
•Interest that compounds or builds each day and is paid to you by the bank.