Depository Institutions Take Charge of Your Finances 1.7.3
Depository Institutions (Most commonly known as “banks”) <ul><li>Depository Institutions  – businesses which offer multipl...
Depository Institutions
<ul><li>Services include: </li></ul>Federal Reserve Bank
Federal Reserve Bank <ul><li>Which federal reserve bank is located in your region? </li></ul>
Life of a Deposited Check
Depository Institutions <ul><li>Commercial Bank </li></ul><ul><li>Credit Union </li></ul><ul><li>Savings and Loan Associat...
Commercial Bank <ul><li>Commercial Banks   </li></ul><ul><ul><li>Usually the largest depository institutions  </li></ul></...
Credit Union <ul><li>Credit Unions   </li></ul><ul><ul><li>Non-profit cooperative depository institution </li></ul></ul><u...
Savings and Loan Association (S&Ls) <ul><li>Savings and Loan Association </li></ul><ul><ul><li>Focus on providing loans an...
Types of Insurance <ul><li>Federal Deposit Insurance Corporation (FDIC) </li></ul><ul><ul><li>Federal government agency wh...
Insurance Protection <ul><li>Insurance protection </li></ul><ul><ul><li>Each depositor is insured up to $250,000 for money...
Interest <ul><li>Interest  - the amount of money that is either gained or lost when accessing services offered by a deposi...
Depository Institution Services
Common Services Offered
Interest Bearing Accounts
Interest Bearing Accounts <ul><li>Credit Card  </li></ul><ul><ul><li>A card used to make a purchase now and repay later  <...
Additional Services Which May Be Offered <ul><li>Safe-Deposit Box </li></ul><ul><ul><li>A secured box in a bank to be used...
Conclusion and Review
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Depository institutions 1.7.3.g1

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  • Depository institutions 1.7.3.g1

    1. 1. Depository Institutions Take Charge of Your Finances 1.7.3
    2. 2. Depository Institutions (Most commonly known as “banks”) <ul><li>Depository Institutions – businesses which offer multiple services in banking and finance </li></ul><ul><ul><li>These institutions include: </li></ul></ul><ul><ul><ul><li>Banks </li></ul></ul></ul><ul><ul><ul><li>Savings and Loans </li></ul></ul></ul><ul><ul><ul><li>Credit Unions </li></ul></ul></ul><ul><ul><li>They are regulated by various state and federal agencies </li></ul></ul>
    3. 3. Depository Institutions
    4. 4. <ul><li>Services include: </li></ul>Federal Reserve Bank
    5. 5. Federal Reserve Bank <ul><li>Which federal reserve bank is located in your region? </li></ul>
    6. 6. Life of a Deposited Check
    7. 7. Depository Institutions <ul><li>Commercial Bank </li></ul><ul><li>Credit Union </li></ul><ul><li>Savings and Loan Association </li></ul>
    8. 8. Commercial Bank <ul><li>Commercial Banks </li></ul><ul><ul><li>Usually the largest depository institutions </li></ul></ul><ul><ul><li>Considered full-service depository institutions </li></ul></ul><ul><ul><li>Available to a variety of consumers </li></ul></ul><ul><li>Examples – Wells Fargo, US Bank, Chase Bank </li></ul>
    9. 9. Credit Union <ul><li>Credit Unions </li></ul><ul><ul><li>Non-profit cooperative depository institution </li></ul></ul><ul><li>Owned by members who share a common bond </li></ul><ul><li>Examples – State Employees Credit Union, Teachers Federal Credit Union </li></ul>
    10. 10. Savings and Loan Association (S&Ls) <ul><li>Savings and Loan Association </li></ul><ul><ul><li>Focus on providing loans and mortgages </li></ul></ul><ul><li>Customers must have a savings account with them </li></ul><ul><li>Examples – American Federal Savings Bank, Pioneer Federal Savings & Loan. </li></ul>
    11. 11. Types of Insurance <ul><li>Federal Deposit Insurance Corporation (FDIC) </li></ul><ul><ul><li>Federal government agency which protects depository institution accounts </li></ul></ul><ul><ul><li>Insures commercial banks and savings and loan associations </li></ul></ul><ul><li>National Credit Union Administration (NCUA) </li></ul><ul><ul><li>Provides insurance for credit unions </li></ul></ul>
    12. 12. Insurance Protection <ul><li>Insurance protection </li></ul><ul><ul><li>Each depositor is insured up to $250,000 for money deposited in a regular account and $250,000 for retirement deposits </li></ul></ul><ul><ul><li>Available from both FDIC and NCUA </li></ul></ul><ul><li>Insurance is important because of the risk of loss </li></ul><ul><li>Risk of Loss is used to determine which party should be responsible for damage or loss of products after a service transaction has been completed but prior to delivery </li></ul>
    13. 13. Interest <ul><li>Interest - the amount of money that is either gained or lost when accessing services offered by a depository institution </li></ul><ul><li>Interest rate - the percentage used annually to calculate the total interest either gained or lost </li></ul>Type of account Interest rate Impact on the consumer Interest bearing - money earned from an investment instrument High More money earned by the consumer Low Less money earned Interest bearing - the charge for money that a consumer borrows from a depository institution High More money paid by the consumer Low Less money paid Credit unions typically offer rates which have the most positive impact on the consumer
    14. 14. Depository Institution Services
    15. 15. Common Services Offered
    16. 16. Interest Bearing Accounts
    17. 17. Interest Bearing Accounts <ul><li>Credit Card </li></ul><ul><ul><li>A card used to make a purchase now and repay later </li></ul></ul><ul><ul><ul><li>If the balance is paid before the grace period ends, interest is not added </li></ul></ul></ul><ul><ul><ul><li>If the balance is paid after the grace period, the payment of interest is required </li></ul></ul></ul><ul><li>Loan </li></ul><ul><ul><li>Money borrowed and paid back with interest </li></ul></ul><ul><ul><ul><li>Mortgage – loan for a home </li></ul></ul></ul><ul><ul><ul><li>Personal – interest rates vary depending upon type of loan </li></ul></ul></ul><ul><ul><ul><ul><li>Loan types can include vehicle, school, etc. </li></ul></ul></ul></ul>
    18. 18. Additional Services Which May Be Offered <ul><li>Safe-Deposit Box </li></ul><ul><ul><li>A secured box in a bank to be used for valuable and important personal items. </li></ul></ul><ul><li>Financial Counseling </li></ul><ul><ul><li>Information and advice is given to customers to help make financial decisions. </li></ul></ul>
    19. 19. Conclusion and Review

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