Banking and Financial Services

1. Banking and Financial Services

2. Credit Unions and Banks • Credit Unions: Not for Profit • Banks: For Profit

3. Savings and Checking Accounts • Individual • Only one person’s name is on the account, only one may write checks • Joint • More than one person’s name is on the account, both may write checks • Interest or Non-Interest • Some accounts pay interest on the balance

4. What Is a Check? • A guarantee of the money it represents • A legal document • A widely accepted form of payment • Questions to ask: • – Minimum Balance? – Monthly Service Fee? • – Per Check Fee? – ATM Fees? • – Interest? – Overdraft Protection? • – Is the account insured?

5. Check, Debit and ATM Cards • Use for Withdrawals, Deposits, Inquiries and Purchases • Looks like a credit card • Money comes right out of your accounts • Can be used like a check • Use “PIN”, Personal Identification Number • May be fees, especially with ATM cards

6. Protect Your Plastic! • Limit ATM use to machines enclosed and well lit • Go to the ATM with friends at popular times • Sign the back of your ATM card right away • Memorize your PIN • Don’t let anyone watch you enter PIN • Put money away safely • Keep track of all of your transactions

7. Other Banking Products and Services • Credit Cards • Loans (Personal, Auto, Home Mortgage) • Life Insurance and Investments (NOT insured!) • Money Orders, Cashier’s Checks, Notary Services, Wire Transfers, Safety Deposit Boxes • Education • Online Banking

8. Online Banking • Consider: • Availability • Delays • Fees • Security • Features Include: • Account access and transfers • Apply for and/or purchase products or services • On-line bill paying services • Links to personal finance software

9. Finding the Best Fit • Convenience • Range of Products and Services • Minimum Deposit Requirements • Limits on Withdrawals • Interest • Insurance

10. The Cost of Financial Services • Service charges • Check order costs • Costs per check • Overdraft Protection

11. Fees • Non-sufficient fund check fees (NSF) • Returned check fees • Monthly service fees • Fees for research assistance • ATM use fees • STOP payment fees

12. Managing Your Money • Controlling the Cash Flow • On-line Banking • Use a system to track transactions • Record Confirmation Numbers • ATMs • Keep track of all transactions in your register • Money taken out of the ATM DOES affect your accounts! • Keep your receipts until transactions clear

13. Keeping the Checkbook in Check…Coming Attractions • Completing the Check • Common Errors • Completing the Register • Expensive Mistakes • Completing the Deposit Slip • Types of Endorsements • Funds Availability • Clearing Procedures

14. Sample Check

15. Check Writing Errors • Illegibility • Empty spaces • Only filling in numbers • Not signing check • Not signing name as it appears

16. Check Writing Errors • Not lining through after dollar amount • Initializing errors • Void the check! • Writing in pencil/erasable ink

17. Check Register I I

18. Expensive Mistakes • Not subtracting ATM fees or service charges • Post-dating checks • Splitting check pads between joint account holders • Writing checks before money is in the bank

19. Expensive Mistakes • Not balancing monthly statement • Not recording checks written in the register • Addition/subtraction errors • Not subtracting automatic deductions e.g., loan payments, insurance premiums, car payments, etc.

20. Deposit Slip (front)

21. Deposit Slip (back)

22. Endorsements • Blank • Jane R. Smith • Restrictive • for deposit onlyJane R. Smith • Special • Jane R. SmithPay to the order of Robert L. Jones

23. Funds Availability • First business day after deposit • Cash • First $100 of check • Government, cashier, and certified checks • Same bank checks

24. Funds Availability • Second business day after deposit • Local bank checks • Fifth business day after deposit • Out-of-town checks

25. Clearing Procedures: Check 21 • Bank clears checks electronically • Banks not required to return paper checks to you • Banks use “Substitute Checks” • Less “Float Time”

26. Alternatives to Checking Accounts • Debit cards • Money orders to pay bills • Payday loans Disadvantages are additional costs

27. Couples & Money Management • Who has primary responsibility? • Separate checking accounts • Splitting check pads • Do what works

28. Changing Financial Institutions • Most retailers prefer or require local accounts • Open up new account after you transfer • Transfer DDS and automatic withdrawals

29. Consequences of Checking Account Mismanagement • Embarrassment • Hefty service charges • Inability to have a checking account due to unsatisfactory history

30. Military Consequences • Punishable under UCMJ Articles 123A & 134 • Maximum punishment ranging from dishonorable discharge to five years confinement at hard labor • Other than Honorable (OTH) discharge • A consideration when recommending for retention, duty assignments, and security clearances

31. Impact on Credit Rating • May be reported to Credit Reporting Agency (CRA) • Impact on future credit purchases

32. Where to Complain Financial Services Resource handout • Customer service representative • Branch manager • Bank president • Federal and State Resources

33. Other Sources of Help • Command Financial Specialist • Fleet and Family Support Center • Navy Legal Services Office • Armed Forces Disciplinary Control Board • Navy-Marine Corps Relief Society

34. Summary • Credit Unions and Banks • Products and Services • ATM/Debit/Check Card Management • Checking Account Management • Sources of Help

35. Print your Certificate Click on the following link to add your name to the certificate and print it: Banking and Financial Services