Travelers Checks • Travelers Checks- Checks that you pay for in advance, and if they are lost or stolen, the issuing company replaces them. • The pros to purchasing traveling checks: 1.) Get them replaced quickly if stolen or lost. 2.) 24/7 costumer service 3.) Never expire 4.) You can get them in many currencies
How to use and why you use them • How? 1.) Sign- Asap sign your name in the upper left corner to help protect yourself in case of loss or theft. 2.) Record- Write down your serial numbers and keep them with you when you travel, separate from your travelers checks. 3.) Protect- Safeguard your travelers checks as you would cash 4.) Use – To pay, sign you check in the lower left-hand corner in front of the person accepting your checks • Why? You use Travelers Checks when you are traveling to different countries and you want to ensure that your money will be safe. You will not have to carry as much cash in your pocket with you. If you are traveling, some local businesses wont accept checks from out of state.
Wire Transfers An electronic communication that moves money from an account in one bank to an account in a different bank. Wire Transfers happen instantly.
How and Why They are Used Banks can arrange to have money wired from your account to pay for things Can be useful in emergencies
Pros and Cons Pros: Money is sent very quickly One of the most popular options for sending or receiving money Cons: Fee to transfer money Scams Possibility of your personal information's being stolen and used against you.
Cashier’s CHECK • A cashiers check is a check that is written by a financial institution on its own funds. • You would use a cashiers check because it is a guaranteed check that you are sending so its good for important things you must pay for.
Pros and cons • Pros: cashiers checks keep a record of purchase, they can be traced to a particular mailing address, the bank is also taking responsibility for the check. • Cons: You have to go to a bank to get a cashiers check, you may be required to open an account if you don’t at the bank. You will likely have to pay a service fee, very slow to clear.
Certified Check • A certified check is a personal check that has been stamped and signed by a bank officer.
Pros and Cons of a Certified Check • The stamp and signature guarantee that your checking account has the money to cover the check • Prevents you from “bouncing” a check • Many banks charge a fee for each certified check • Ranges from $5-$20
Money Orders What is a money order ? A money order is a check that draws on the money of the bank or other financial business that issued it. How/ why you would use a money order. in order to use a money order you must pay a small fee, usually ranging from $1-$10, they can be purchased from banks, post offices, check cashing businesses or other financial businesses. you would use a money order if you don’t have a checking account, or if you need to make a payment but the company you need to pay does not accept personal checks.
Money Orders • Pros • they are a secure form of payment. • Can be used overseas • Are able to transfer funds from across International boarders. • Fast online payments for auctions Cons Can be used as a scam, fakes can be made. Sending a fake money order to a seller paying for the item and any shipping costs. Some online sellers will not accept money orders due to “fake” money being sent. If using constantly can become time consuming. Once a money order is sent it can no longer be canceled.
SAFE DEPOSIT BOX • They are boxes with individual locks that you may rent from a bank • Located in a vault, where all content is safe from fire, theft and loss. • The cost to rent one is $30 and $40 dollars a year. • Larger boxes are more expensive, but most consumers find small ones to be large enough. • When you rent one, you sign a card, show a valid ID, and dive your key to a the box • Each time you want to get into your box, you must sign in, show your ID , and give your key to a bank employee. • The employee will then compare signatures. • That process protects you from someone gaining access to your box
www.fdic.gov • Before renting a box: Read the security and operating procedures in your rental contract • At home: Keep your two safe deposit box keys apart from each other and in safe. • Inside the vault: Accompany the bank employee into the vault, and be sure no other customers are there with you. • Outside the vault: Only open the safe deposit box when you're inside the viewing booth and away from bank employees and customers. • If there's a problem: Tell a bank manager if the vault attendant seems a bit lax in following security procedures or if you spot something suspicious going on