Consumer Banking

Consumer Banking “You as a consumer” & “Banking”

What is Consuming? • A consumer is someone who buys or uses goods and services • Consuming involves 3 stages • Making Choices • Products and Services • Buying Wisely • Wants vs. Needs • Brand Name vs. Generic • Using goods and services properly

Financial Institutions • Commercial Banks • Full-service banks • Checking, savings, loans, safe deposit boxes, credit cards, ATM’s, money orders, traveler’s checks • Savings & Loans Associations • Started in the early 1800’s • Groups of people pooled their money together so that each could borrow

Financial Institutions • Credit Unions • Nonprofit savings and loan cooperative associations • Made up of people who have something in common, like place of employment • Members govern credit unions • Changes in Financial Institutions • As a result of the 2008/2009 recession interest rates have become much more competitive among banks • These institutions now actively compete for business which benefits the consumer

Electronic Banking • ATM’s • 24-hour banking • Online Banking • Pay bills, transfer money, check account balances • Mobile banking • Smartphone • Direct deposit or withdrawals • Point-of-sale transfers • Debit card

Checking Accounts • Most commonly used banking service • Checks are safer than carrying cash • Make it easy to keep track of transactions • Cancelled check is a check that has been paid and is legal proof of payment • They are electronically scanned and processed • Once processed it is considered ‘cleared’ or paid • There are different types • Minimum balance account • Cost-per-check account (special account) • NOW account – interest bearing

Opening a checking account • Research and choose a financial institution • You will fill-out a ‘signature card’ • Name • Address • Phone number • Social Security number • Signature • Safeguards your account against fraud/forgery

Parts of a check • Your name and address (account holder) • Date • Check number • Payee • Numerical amount • Written amount • Bank information • Purpose or account number • Signature • Bank routing number and account holder’s account number

Check example Your name here (1)(3) 5001 Address Phone (2) ________________ __________ (4) (5) Pay to the order of ______________________________________________________________ $ _(6)___________________________________________________________________________________ Dollars Bank of USA (7) 2123 Main Street Cicero, NY 13031 For ________________________________(8)(9)____________________________________________________ |:021989478|: 756420855808” 5001 (10)

Keeping a Check Register • Where you keep a record of checks written, deposits made, and other transactions

Endorsing a Check • Your signature on the top back side of the check • Blank endorsement • Simply your written signature • Restrictive endorsement • Message or signature that restricts the use of the check • “For Deposit Only” • Full endorsement • When you want to pay someone else with a check that was written out to you • “Pay to the order of…”

Deposit Tickets & Statements • Depositing money into an account, use a ‘deposit ticket’ • Preprinted slip that comes with your checks • Used to deposit any combination of currency, coins, and checks • ‘statement of account’ is the summary of all transactions completed in a checking account for a given period of time • Paper form in the mail or accessible online

Consumer Banking