• Activity 1………….Why Do You Need A Bank?• Activity 2………The Many Services of a Bank• Activity 3….The ABCs of a Checking Account• Activity 4……….Opening a Checking Account• Activity 5………………….How to Write a Check• Activity 6…..Maintaining a Checking Account• Activity 7……The ABCs of a Savings Account

Basic Banking Services - Activity 1

ACTIVITY 1

Why Do YouNeed a Bank?

Overview

• Purposes of banks• The differences between banks and

credit unions• Safety of financial institutions• Banks as money management tools• The Earned Income Tax Credit

2

SAFETY OF FINANCIAL INSTITUTIONS

COMMERCIAL BANKS CREDIT UNIONS

Slide 1 – Safety of Financial Institutions Lesson Reference: Basic Banking Services, Activity 1 – Overhead 3 3

THE EARNED INCOME TAX CREDIT

The Earned Income Tax Credit (EITC) is a federal income tax credit for low-income workers. The credit reduces the amount of tax an individual owes, and may be returned to the taxpayer in the form of a refund. Some states offer additional forms of EITC.

Eligible workers must have an annual income and investment income that falls below a certain level. In tax year 2005, for example, if you are married, have two or more children, and are filing your taxes jointly, your combined annual income must not exceed $37,263. You must have a Social Security Number to receive the EITC.

In tax year 2005, a family with two or more children could receive up to a $4,400 refund through the EITC.*

Slide 2 – EITC Lesson Reference: Basic Banking Services, Activity 1 – Handout 2 4

Basic Banking Services - Activity 2

ACTIVITY 2

The Many Servicesof a Bank

Overview

• Financial services provided by a bank• Bank employees• Services that might be of personal benefit• The impact of state and federal

regulations upon the security of a bank

5

REMITTANCE OPTIONS TO SEND AND RECEIVE MONEY

1. Money Transfer Organizations2. Bank Transfers3. Hand Delivery4. Mail5. Hawala6. Post Offices7. Stored Value Cards

Slide 1 – Remittance Options

Lesson Reference: Basic Banking Services, Activity 2 - Overhead 1 6

BANK OCCUPATIONS

• Tellers

• Platform Bankers

• Mortgage Lenders

• Operations Manager

• Branch Manager

Slide 2 – Bank Occupations Lesson Reference: Basic Banking Services, Activity 2 – Overhead 27

ELECTRONIC BANK SERVICESOnline banking is the fastest growing

Internetactivity in the U.S.

Types of Services

•Bank Cards

•Automated Services

Protect Your Passwords!Slide 3 - Electronic Bank Services

Lesson Reference: Basic Banking Services, Activity 2 – Overhead 3 8

BANK CARD TYPES

Slide 4 - Bank Card Types Lesson Reference: Basic Banking Services, Activity 2 – Overhead 4

TYPE• Check Cards or

ATM/Debit Cards

•

Stored Value Cards

DESCRIPTION• Bank cards that allow for the

payment of goods and services to be subtracted directly from a bank deposit account.

• Can be used with merchants that take major credit cards—known as point of sale (POS) transactions.

• Bank cards with preset, limited value.

• Used to pay for goods and services.

• Alternative to cash.9

ELECTRONIC BANK SERVICES

• Direct Deposit

• Transfers between Accounts

• Transfers to a Third Party

• Online Banking

• Bank by Phone

• ATM

Slide 5 – Electronic Bank Services

Lesson Reference: Basic Banking Services, Activity 2 – Handout 3 10

REGULATION OF ELECTRONICBANKING SERVICES

Electronic Fund Transfer ActProtects consumers using any type of electronic banking from loss and protects their privacy.

Banks must:• Offer consumers a record or receipt for all

computer transactions.• Investigate errors and report to consumer within

ten days of error notification.

Customers are responsible to report any errors.Slide 6 - Regulation of Electronic Banking

Lesson Reference: Basic Banking Services, Activity 2 – Overhead 5 11

Basic Banking Services - Activity 3

ACTIVITY 3

The ABCs of a Checking Account

Overview

• Purposes of a checking account• Shopping for and comparing checking

accounts

12

Slide 1 - Checking Account Terms Lesson Reference: Basic Banking Services, Activity 3 – Handout 1

CHECKING ACCOUNT TERMS

•Bank Statement•Cancelled Check•Check•Check Register/Ledger•Endorsement•Fee• Interest•Minimum Balance

•Outstanding Transactions

•Overdraft•Overdraft Protection•Payee•Reconciling a Bank

Statement•Transaction Limits

13

Slide 2 - Shopping Around Lesson Reference: Basic Banking Services, Activity 3 - Handout 2

SHOPPINGAROUND

(THINGS TO ASK ABOUT

WHENOPENING A CHECKING ACCOUNT)

SERVICESLocation of bankLocation of ATMsBanking hoursMinimum balance requiredMinimum transactions or limitsInterest-bearing accounts?Other

COSTSNon-primary bank ATM transactionsIn-branch transaction feesPer-check feesOther checking feesOverdraft protectionPrinting of checks

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Basic Banking Services - Activity 4

ACTIVITY 4

Opening a Checking Account

Overview

• Checking Account Application Process• The Application• Acceptable Forms of ID• The Signature Authorization Card• The PATRIOT Act

15

Slide 1 – Opening a Checking Account

Lesson Reference: Basic Banking Services, Activity 4 – Handout 1

OPENING A CHECKING ACCOUNT

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Slide 2 - Commonly Accepted Forms of ID Lesson Reference: Basic Banking Services, Activity 4 – Handout 2

Primary ID*

•Photo Driver’s License issued

within the U.S. or Canada

•State Non-Driver Photo ID

•Photo Learner’s Permit

•Government Photo ID

•U.S. Passport

•Non-U.S. Passport

•Resident Registration Card

•Mexican Consular ID (Matricula Consular)

* Financial institutions' ID requirements may differ; check with the institution first before applying for an account.

COMMONLY ACCEPTED FORMS OF ID

•Naturalization Certificate

•Employee Photo ID (from a recognizable employer)

•Photo Trade License (barber, plumber, electrician, etc.)

•Student Photo ID (college/trade school)

•Medicare Card (must be 65 or older)

17

Slide 3 - Commonly Accepted Forms of ID Lesson Reference: Basic Banking Services, Activity 4 – Handout 2

Secondary ID*

•Pay Stub

•Car Registration

•Mortgage Statement

•Letter of Introduction from Bank, Embassy, or well-known Employer

•Welfare Card

•Supplemental Health Insurance Card

* Financial institutions' ID requirements may differ; check with the institution first before applying for an account.

COMMONLY ACCEPTED FORMS OF ID

•Foreign Driver’s License

•State/Local Gun Permit

•Utility Bill (Name and address

of individual account should be listed)

•Current Bank Statement

•National Credit Card

•Bank-issued Debit or Check Card

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THE PATRIOT ACT

Congress passed the PATRIOT Act in response to the terrorist attacks of September 11, 2001. Financial institutions are now required to collect certain information when a new account is opened.

Slide 4 – The PATRIOT Act

Lesson Reference: Basic Banking Services, Activity 4 – Overhead 1

1. The customer must provide identification that includes name, date of birth, address, and identification number.

2. The institution must maintain a copy of the information used to verify the person’s identity.

3. The institution must determine whether the applicant appears on the lists of known or suspected terrorists or terrorist organizations.

19

Slide 5 – Signature Authorization Card

Lesson Reference: Basic Banking Services, Activity 4 – Handout 3

SIGNATURE AUTHORIZATION CARD

20

Basic Banking Services - Activity 5

ACTIVITY 5

How to Write a Check

21

Slide 1 - Writing a Check Lesson Reference: Basic Banking Services, Activity 5 – Handout 1

WRITING A CHECK

22

Basic Banking Services - Activity 6

ACTIVITY 6

Maintaining aChecking Account

Overview

• Check 21• Keeping a check register• Making a deposit into a checking account• Reconciling a bank statement• Maintaining a checking account• Avoiding Overdrafts

23

Slide 1 – Check 21

Lesson Reference: Basic Banking Services, Activity 6 – Handout 1

CHECK 21

Check 21 is a federal law that helps banks handle more checks electronically and that makes check processing faster and more efficient.

Under this law, a check deposited in a bank is typically “delivered” overnight to the paying bank and deducted from the checkwriter’s account on the next business day.

Money may be deducted from your checking account almost immediately.

24

KEEPING A CHECK REGISTER

Slide 2 - Keeping a Check Register Lesson Reference: Basic Banking Services, Activity 6 – Handout 225

Slide 3 - Making a Deposit - Endorsing a Check

Lesson Reference: Basic Banking Services, Activity 6 – Handout 2

MAKING A DEPOSIT - ENDORSING A CHECK

Restrictive Endorsement(most secure)

Blank Endorsement(least secure)

Endorsement to a third party

The Back Side of a Check

26

Slide 4 - Making a Deposit - Completing a Deposit Slip Lesson Reference: Basic Banking Services, Activity 6 – Handout 2

MAKING A DEPOSIT - COMPLETING A DEPOSIT

SLIP

27

Slide 5 - Reconciling a Bank Statement Lesson Reference: Basic Banking Services, Activity 6 – Handout 2

RECONCILING A BANK STATEMENT

28

OVERDRAFTS AND BOUNCED CHECKS

Overdrafts and bounced checks occur when you complete a financial transaction (e.g., write a check) for more than what is available in the account. Your financial institution may pay the amount and charge you a fee, known as an “overdraft fee” or a “nonsufficient funds fee.”

Tip: Avoid overdraft or non-sufficient funds fees by making a habit of monitoring the balance in your checking account.

Slide 6 – Overdrafts and Bounced Checks Lesson Reference: Basic Banking Services, Activity 6 – Overhead 1 29

Basic Banking Services - Activity 7

ACTIVITY 7

The ABCs of aSavings Account

Overview

• Purpose of a savings account• Shopping for a savings account• Applying for a savings account• Monthly bank statement checkup

30

REASONS TO SAVE

• Emergencies

• Future Purchases

• Future Investments

Slide 1 - Reasons to Save Lesson Reference: Basic Banking Services, Activity 7 – Overhead 131

SHOPPING FOR A SAVINGS ACCOUNT

Factors to consider:• Safety• Risk• Liquidity• Minimum Account Balance Requirements• Fees and Service Charges• Interest Rate • Returns (Earnings)• Automatic Transfer• Direct Deposit

Slide 2 - Shopping for a Savings Account Lesson Reference: Basic Banking Services, Activity 7 – Overhead 232

OPENING A SAVINGS ACCOUNT

Slide 3 – Opening a Savings Account Lesson Reference: Basic Banking Services, Activity 7 – Overhead 333

Slide 4 – Bank Statement Lesson Reference: Basic Banking Services, Activity 7 – Overhead 4

BANK STATEMENT

34