BANKING OVERVIEW & OPPORTUNITIES

September 7 & 8, 2010

Objectives

Compare financial institutions and services

available.

Determine how to develop a relationship

with a financial institution.

What is a “bank”?

The term “bank” in a general sense refers to any type of financial institution where you may deposit money. In addition, consumers canSave money (savings account)Maintain finances (checking account)Borrow money (loans)Obtain creditOther services (investments, financial

planning, safe deposit boxes, etc.)

Types of financial institutions1. Commercial Banks – Owned by

shareholders and operated (for profit)

2. Savings and Loan – Usually owned by the depositors (for profit)

3. Credit Union – Owned by its members who have a common bond (not for profit)

4. Internet Bank – Operates exclusively over the Internet using online banking (for profit)

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Developing a relationship with a financial institution? By opening an account

(savings and then checking)

Handle the account responsibly

Try to visit the same location over a period of time, so you are familiar with the employees

Advantages of Using a Financial Institution Convenience Safety Growing your money Cost savings Financial Advice

BRAINSTORMACTIVITY

What is FDIC?

Stands for Federal Deposit Insurance Corporation

Agency of the federal government Insures savings, checking and other

deposit accounts in most financial institutions

Up to $250,000 per depositor

What do you need to open an account?

Money to deposit Identification – driver’s license Social Security Number