Statutory Audit of Bank Branches – under Core Banking System
BANKING 101. Different Types of Banking Institutions Commercial Bank Serves both...
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Transcript of BANKING 101. Different Types of Banking Institutions Commercial Bank Serves both...
BANKING 101
Different Types of Banking Institutions
Commercial Bank Serves both individuals/businesses Well located Branches Broad range of services FDIC Insured
Savings and Loans Services better and lower fees than
commercial FDIC insured
Banking Institutions
Credit Unions Lowest fees/loan rates because they are non-
profit Earnings are paid to members Small and tend to know their clients Insured by NCUA not FDIC
Mutual Fund/Brokerage Firms Offer limited banking services Require larger minimum balances for
investments Not FDIC insured by are privately insured
Banking Institutions
Virtual Banks No “brick or mortar” all online Con: they may have limited ATM machines
so you may pay more in fees Consumer Finance Company
Specialize in providing loans to consumers who are unable to get a bank loan
Generally charge a very high interest rate
Banking Institutions
Check Cashing Outlet Will cash checks for a fee Used by people without bank accounts Offer short-term loans such as advance
paycheck loans for a % of the value of your check
Pawnshop Give you a loan in exchange for something
of value Or takes items on consignment
Bank Services
Checking Accounts An account that handles deposits and
withdrawals Account holder is responsible for
keeping track of available funds CHECK BOUNCING
Check is written for more than what is available in the acct.
High Fees will be charged Possibly lose of the ability to have a
checking accts
Savings Accounts
Standard Savings: Withdraw money without penalties Offers low Interest
Certificates of Deposit (CDs) Higher interest rates Need to leave money in for a specific period of
time Money Market Accounts
Higher interest rates May withdraw money a limited number of times Requires a minimum balance
Debit Cards & Bank Fees
Debit Cards Similar to a credit card Money is withdrawn immediately upon use
Bank Fees Before choosing a bank you need to understand
charges up front ATM Fees Debit Card Fees Stop payment fees Check printing fees Overdraft Fees Monthly Checking Acct Fees
Bank Vocabulary
Direct Deposit Interest bearing
account Signature card Overdrawn Overdraft
protection Stop payment Debit Card
Check Register Endorsement Bank statement Canceled checks Bank
Reconciliation Outstanding
Checks