Banks and Credit Unions

1. “Bank Accounts: What
You Should Know”

2. Overview
Bank or Credit Union
How to Choose the Right Bank
Banking Terminology
Types of Bank Accounts
Features of Checking Accounts
How to Write a Check

3. Bank
Credit
Union
Members-usually a
group of some type –
Teacher Credit
Union-Firefighters-
or a Community
Lower Interest Loans
Higher interest
Savings
Profits shared with
Members
Protected by NCUA
Not as many ATM’s
available
Not as many
locations
Service Driven
Anyone can be a
Customer
Higher Interest
Loans
Lower interest
Savings
Controlled by Paid
Officials or
Stockholders
Protected by FDIC
Potentially more
ATM’s available
Probably more
locations
Profit driven

4. How to Choose the
Right Bank
Location
Is it close to home or campus?
Will I need a car to get there?
Will I have easy access to an Automatic
Teller Machine (ATM)?
Services
Is it open when I need to use it?
Does it offer the services I need?

5. Things to Look for
Free checking
 No monthly or per-check fee
 No minimum balance requirement
 Unlimited check writing
 Free online banking & bill payment
 Free online bank statements
 No fee for using the ATM’s- as long as you have
an account
No-fee debit card with unlimited use. Also
debit card.

6. How to Choose the
Right Bank
Costs
How much are the fees? (ATM, monthly, per-
check, etc.)
Requirements to Open an Account
Documents (Picture ID, proof of address, etc.)
Minimum Balance
Minimum Transactions or limits

7. Banking Terminology
Deposit: to put money in the bank
Bank deposit (noun)
Withdraw: to take money out of the
bank
Withdrawal (noun)
Overdraw: to take more money out of your
account than is available

8. More Banking
Terminology
Interest: money which your bank
account earns
Fixed interest rate: unchanging rate of
interest
Variable interest rate: rate of interest
which changes regularly

9. Types of Bank Accounts
Checking Accounts
Permit you to write checks up to the
amount of money in the account
Savings Accounts
Earn interest on the money in the account
May not have check-writing or ATM
privileges

10. Minimum deposit
 Minimum amount of money required
to open account
Service fees
 Monthly statement fee
 Per check fee
 Debit card (ATM) fee
Minimum balance
 Required amount of money in account
 You must pay a fee if amount falls
below minimum balance.
Features of Checking
Accounts

11. More Features of
Checking Accounts
Interest
 Interest-bearing accounts pay interest
 Interest-free accounts do not pay interest
Other Fees
 Nonsufficient Funds (NSF) fee
 Fee for writing a check for “bouncing a check” (writing it
for more money than is in your account)
 Wire transfer fee
 Fee for sending money electronically from another bank

12. More Features of
Checking Accounts
Overdraft protection
 Protects you from overdrawing your account
 Money is automatically taken from your savings
account if you write a check or make an ATM
withdrawal for too much money.
FDIC protection
 Federal Deposit Insurance Corporation
 U.S. government agency which insures your bank
account up to $100,000

13. What You Need to Open
An Account
Passport or other official government I.D.
Copies of immigration documents
Picture ID Card (may be optional)
Address in U.S.
Minimum required deposit-maybe

14. ATM Cards
ATM = Automatic Teller Machine
ATM card = plastic card with a personal code
Provides 24-hour access to your money
Used to deposit money into or withdraw it
from your account
Access to your money is free if you use your
bank’s ATM
 If you use another bank’s ATM, you may be
charged a fee by the other bank and your bank.

15. Important ATM Card
Tips
Keep your card in a secure place
Do not write your personal code on your
ATM card or keep it with your card.
Keep your ATM receipts and write them in
your checkbook.
Review your monthly bank statement for
accuracy.

16. Debit Cards
Plastic card with a personal code
Also used as ATM card
Used to make purchases
Amount of purchase is withdrawn
directly from your bank account

17. THANK YOU VERY
MUCH!