deposit accounts
DESCRIPTION
DEPOSIT ACCOUNTS. Money is a good servant but a dangerous master. — H.L. Hunt. LifeSmarts is a program of the National Consumers League. Demand Deposit Accounts. Checking Debit cards Online transactions Passbook savings. I want a checking or savings account. Where do I go?. - PowerPoint PPT PresentationTRANSCRIPT
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DEPOSIT ACCOUNTSMoney is a good servant but a dangerous master.
— H.L. Hunt
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2LifeSmarts is a program of the National Consumers League
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Demand Deposit Accounts
Checking Debit cards Online transactions
Passbook savings
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I want a checking or savings account
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Where do I go?
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Commercial Bank
Federal or State charter
For profit Owned by
stockholders Accounts for
individuals and businesses
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Savings and Loan Association6
For profit Pays dividends
on deposit (interest)
Focuses on mortgagesand loans
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Credit Union
Not for profit Member owned Lower operating costs
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Cyber Bank8
Transactions are electronic
Banking is done viathe internet
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Consumer Finance Company
Cash advance Check cashing Pawn shop
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What keeps my money safe?10
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Account Insurance11
Federal Deposit Insurance Corporation (FDIC)
National Credit Union Association (NCUA)
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How do financial institutions make money?
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Transaction or Service Fees
Cash machines Check cashing Overdraft protection
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What are some of the other fees for service I should understand?
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Some possible checking account fees: Monthly service fee Per check fee Below minimum
balance fee
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What is the difference between an ATM and a cash machine?
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Customers of a financial institution can use that institution’s ATM to accomplish a variety of transactions, hence the name – automatic teller machine.
Cash machines give you cash by charging your debit or credit card.
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Debit Cards
Alternate to checks or cash Online transactions ATM/Cash machine PIN # Linked directly to bank
account
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CAUTION!17
Yes, you can overdraw your account with a debit card.
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More about Fees18
Financial institutions have fees for other services such as: Non-sufficient funds (NSF) or
bounced checks Overdraft protection Stop payment
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NSF19
There are not enough funds in your account to cover a check or a debit purchase. The check is returned to the payee.
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Overdraft Protection
A prior arrangement with the financial institution to pay when your check exceeds the amount in your account.
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Stop Payment21
The consumer can request that the financial institution not pay on a check they have written.
This must be done before the check is presented for payment.
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Deposit Accounts and Identity Theft22
It is your responsibilityto protect your account.
Here are some tips from the Federal Reserve Board.
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Don’t give out account information23
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Review your monthly statement24
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Notify your financial institution25
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Keep accurate records26
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Money Management27
Know your rights and responsibilities under consumer protection laws.
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