Download
1 / 16
160 likes | 279 Vues
This guide explores various financial accounts offered by banks and credit unions, including savings accounts, certificates of deposits (CDs), money market accounts, and checking accounts. It covers the advantages, limitations, and features of these accounts, such as the accessibility of checking accounts, the requirements for maintaining accounts, and the safety offered by FDIC insurance. Learn how to choose the right account based on your financial needs, and understand the different types of checking accounts, including regular, student, and interest-bearing options.
E N D
Dollars & Sense Unit 3: Financial Institutions & Banking Systems Part 2: Accounts
Accounts Offered by Banks & Credit Unions • Savings • Certificates of Deposits (CD’s) • Money Market • Checking
Section 2 Savings Plans and Payment Methods Types of Savings Plans
Section 2 Savings Plans and Payment Methods Types of Savings Plans Three Limitations of a Certificate of Deposit (CD) Your money must stay in the account for one month to five or more years. You must pay a penalty for withdrawing your money early. There is usually a minimum deposit amount.
Section 2 Savings Plans and Payment Methods Types of Savings Plans money market account a savings account that requires a minimum balance and earns interest that varies from month to month
Section 2 Savings Plans and Payment Methods Types of Checking Accounts • Checking: • A transactional bank account. • Easy access to your money Regular Checking Accounts Interest-Earning Accounts
Advantages of a Checking Account • Convenience • Safety • Proof of Payment • Record of Finances
Advantages of a Checking Account 1. Convenience • Write checks at home • Pay bills by mail • Debit Card • Online payments • Swipe card and money is taken directly out of checking account • Need Cash? = ATM
Advantages of a Checking Account 2. Safety • Money on hand involves risk of losing it by fire, theft, or carelessness • Less temptation to spend money • Check can only be cashed by person or business to whom it is payable
Advantages of a Checking Account 2. Safety • FDIC & NCUA • Most banks & credit unions are members • FDIC insures deposits up to $250,000
Advantages of a Checking Account 3. Proof of Payment • Check is legal proof of your finances • Payment to others • Confirm with bank • All checks are now electronically imaged
Advantages of a Checking Account 4. Record of Finances • Check is legal proof of your finances • How much are you spending • Where your money is going • How much you have remaining
Types of Checking Accounts - Overview • Differ in what they offer to customers • Annual Fee • Minimum Balance • Fee for each check written (Service Charge) • Fee for ATM use (Service Charge) • Interest earning accounts
Types of Checking Accounts • Regular Checking Accounts • No service charges • Low Minimum Account Balance • Typically No Interest on Account • Student Checking Accounts • Senior Checking Accounts
Types of Checking Accounts • Interest Checking Accounts • Most require Minimum Monthly Balance • Most $500 or more • Service Charges/Fees • May require a specific # of checks written or debit card transactions • May require direct deposit • Monthly Service Charge • Pays a Low Rate of Interest on Account
Your Task • Complete and email the Bank Account Comparison Worksheet
