2011 banking basic_class_en
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  • Hand out folders to participants.Emphasize that the seminar is not graded and is not a competition. Encourage participants to ask questions.Make sure that your students know that you are there for general information purposes only and that you are not a financial advisor. If personal questions persist, let your students know that you or agency staff can provide them with a list of resources at the end of class that will help them answer those questions.
  • Review these learning goals for the seminar. This is a good time to ask participants what they want to get out of the seminar. Write down their ideas on the easel pad or white board. This process helps participants focus and helps you to better understand the needs of your audience.
  • Ask participants what some of the advantages are to having a bank account. Write down key concepts and ideas on the easel pad or board.As the leader, your role is to listen attentively and pull out the general information that can be used by the entire class. Be supportive, encouraging and tolerant.
  • Review these advantages of having a bank account, pointing out items on the list that participants had identified during the discussion of the last slide.You can make the point that alternative financial services (such as check cashers and payday lenders) charge high fees and don’t offer the same service to customers as banks and credit unions.Remind participants that accounts are insured up to $250,000 by the FDIC (banks) or the National Credit Union Share Insurance Fund (credit unions). You can verify whether an institution is FDIC-insured by searching for it on the FDIC’s website or calling the FDIC’s Division of Compliance and Consumer Affairs at 877-275-3342.
  • Encourage participants to brainstorm even if they are not sure of the differences between banks and credit unions.
  • During this discussion, use examples of well-known banks to illustrate your explanation.
  • During this discussion, use examples of some local credit unions to illustrate your explanation.
  • Ask participants this question to generate discussion of account verification services.
  • You may want to note that there is a possibility that banks and credit unions will check the ChexSystems database when you apply for a savings account as well.
  • ChexSystems can be reached at 800-428-9623 or on the Internet (www.consumerdebit.com)When you order a copy of your ChexSystems report, it includes instructions on how to dispute inaccurate information.
  • Emphasize that while accurate information stays on your ChexSystems report for five years, this doesn’t always mean that it is impossible for you to open a new checking account. Encourage participants to inquire at different banks and credit unions as requirements vary.
  • In this exercise you will review the sample ChexSystems report with workshop participants. The different elements of the report can get confusing, so be sure to go slowly and define your terms along the way. Ask participants if there is anything they don’t understand.
  • Ask this question to get participants talking about the different features of checking accounts.
  • ATM – Automated Teller MachineOnline banking requires you to register your account for online access using a username and password.Mobile banking is possible with a data-ready device (smart phone, personal digital assistant (PDA), droid or iPhone).In most cases, you can check your balance, pay bills and transfer money by calling your financial institution.
  • Possible from anywhere you have Internet access.All major consumer financial institutions offer online banking and bill payment.After logging on, you can add payee information for any bill you want to pay via online banking. You also can see balances and activity for all your accounts, and transfer money between those accounts with a few clicks.Convenient means no trips to the post office or mailbox to mail bill payments, no need to visit a bank teller as long as deposits are made electronically, and the ability to pay bills and view activity just about any time and anywhere (for example, no need to worry about bills going unpaid while you are traveling!). Fees on e-accounts (where all or most deposits and other transactions are made electronically) are generally low or nonexistent. You don’t have to wait for your monthly statement to see if a check has cleared, a deposit has been processed, or what your balance is. You can cut out postage costs for mailing bill payments and reduce the number of checks you have to buy.For non-direct deposited checks (a gift, payment for something you sold, reimbursement from a friend or family member, etc.), you’ll still have to make a trip to the ATM to make the deposit. You’ll also have to visit the ATM to withdraw cash as needed unless you can request cash back when you pay with your debit card at a grocery store or other business.
  • If the financial institution is new to you, and particularly if it has no brick-and-mortar (physical) locations, you should confirm with the FDIC (Federal Deposit Insurance Corporation) at www.fdic.gov that your deposits with the institution are insured (up to $250,000). (Search by name, city, state or ZIP code.) Banks chartered overseas may not be FDIC-insured.Account passwords should be at least eight characters long and use numbers and symbols as well as letters.Don’t give out your logon name or password or keep them where someone could find them.Watch out for email messages that pretend to be from your bank and ask for sensitive information such as an account number, birth date, Social Security number or password. Your financial institution will never ask for this information via email. Also, beware of clicking on a link in such an email. Often, these links lead to copycat websites that lure you into giving your personal information. Before conducting a transaction, always type in the correct website address for your bank yourself (rather than using a link in an email).Don’t conduct online banking using unsecured and unencrypted Wi-Fi—this puts your information out there for someone to grab. Learn how to protect yourself on Wi-Fi at Lifehacker.com and OnGuardOnline.com. Monitor your account activity regularly—even daily. If you see anything suspicious, contact the financial institution immediately.
  • Discuss each of these features and types of checking accounts (described in the Basic Banking Leader’s Guide). Involve participants by asking them if they know what each kind of account or feature is.Free accounts may be available if you use direct deposit to receive your paycheck or benefits check. This means you will not receive a paper check, but the money will go automatically into your account. Some banks also offer free accounts if you use an ATM machine for all deposits and withdrawals.For those who receive government benefits, electronic transfer accounts may be found at www.eta-find.gov/.Some financial institutions offer basic checking accounts with no (or very low) minimum balance requirements—which means you won’t get hit with a monthly fee if your account dips too low. These accounts sometimes have limited check writing privileges. Some banks voluntarily offer similar accounts. Ask local banks if they have these accounts.
  • During the discussion of this slide, be sure to clarify the ways in which a debit card (or “check card”) is different from a credit card or an ATM card. Even though a debit card has the Visa or MasterCard logo on it, money is immediately taken out of the accountholder’s account. You are not using credit, and you will not receive a bill later. Debit/check cards are convenient, but they do not help you to build a credit history.While both debit cards and ATM cards can be used at automated teller machines (ATMs), you might not be able to use an ATM card (without the Visa or MasterCard logo) to make purchases at businesses.
  • Stress that debit cards are like cash because you don’t always need a PIN to use them.
  • Ask participants to take out the check writing activity sheet from their folders. In this activity, participants practice writing a check and then entering it into a sample checkbook register. Give participants five to 10 minutes to complete the worksheet.When participants have written the check to Peter Perkins and deducted it in the checkbook register, the new balance will be $1,343.87. A teacher’s key to this exercise can be found in the MoneyWI$E Banking Basics Lesson Plan.
  • This is the “classroom discussion question” at the bottom of the check writing activity worksheet. Ask participants to share their suggestions with the class.
  • Discuss how important is is to write down all transactions that you make: checks you write, ATM withdrawals and purchases and “cash back” using your debit card. This can help you avoid “bounced check fees” (NSF fees)This also helps with tracking spending and sticking to a budget: you have a record of how much you spend each month on rent, bills and anything else you pay for with checks or your ATM card. Let participants know that the MoneyWI$E series also features “Manage Your Money Wisely: Tracking Your Money,” a fact sheet on budgeting and money management. If possible, bring some of these brochures with you.
  • Let participants brainstorm for a few minutes.
  • You may want to point out that while some checking accounts accumulate interest like savings accounts do, most do not. Interest bearing checking accounts may have higher maintenance fees.Explain that the annual percentage rate, or APR, can be the amount you pay (such as for a mortgage), or the amount paid to you (such as in your savings account).
  • Move to the next slide for an example to make the concept of simple interest clearer.
  • Make the point that while compounding interest helps your money grow, you can save the most money by making regular deposits into your savings account so that it grows with the power of compound interest. Example: Add $10 per month to the initial $100 deposit for 10 years, and the account would be worth $1,373.06 after 10 years. (Calculated at http://www.moneychimp.com/calculator/compound_interest_calculator.htm)
  • This slide concludes the first half of the Banking Basics seminar. If you will be covering the second half of the lesson today, have participants return from their break in 15 minutes. If you will be covering the second half on a different day, write the date and time on the easel pad or white board and encourage participants to attend.
  • Ask if anyone can answer this question.
  • Review these key points about CDs.
  • Allow the class to brainstorm.
  • Review these suggestions for things that might be kept in a safe deposit box.
  • No notes for this slide.
  • No notes for this slide.
  • Questions to consider when opening an account.
  • Point out that the “Choosing a bank or credit union account” worksheet is in participants’ folders. Emphasize that participants can use the worksheet as a guide to help them find the best deal when they are applying for new accounts.
  • Ask this question to prepare participants for the experience of going to a bank or credit union to open a new account. You might want to suggest that they call first in case the institution has any peculiar ID requirements.
  • No notes for this slide.
  • In this exercise, participants will go through the process of filling out a sample savings account application. Make it clear that while this sample application is realistic, it is not real. Let participants know that you will be discussing each section of the application with them; they are to fill out the application as you explain each section. Be sure to ask if there are any terms or directions they don’t understand.
  • Ownership: Review what the terms “sole owner,”“joint owner” and “primary owner” mean:- If the account is in one person’s name, check “Sole Owner.”- If it is a joint account, check “Joint Owner.”- The “Primary Owner” is the first owner listed on the account.- The primary owner will receive an annual statement of interest (1099-INT) for tax purposes.- A copy of the 1099-INT form will be given to the Internal Revenue Service (IRS).W-9 Certification:- Because the money in the account will be earning taxable income, you will be asked for “W-9 Certification,” or “Request for Taxpayer Identification Number and Certification,” a requirement of the IRS.- “Backup withholding” is an IRS requirement for people who have underpaid or been negligent in paying their taxes.- When you file your taxes, you get the excess back. There is a penalty if you lie to a bank or other company about whether you are subject to backup withholding.Review the different ATM card options with the group: - Optional means that you do not have to have the service unless you want to. - Savings account holders can request an ATM or debit card so that they can access their money at an ATM. - It is not necessary to have an ATM or debit card: savings account holders can also go into a branch of their bank and use one of the bank’s withdrawal or deposit slips to make a withdrawal or deposit. - If you already had a checking account at “MoneyWI$E Bank,” you could ask that it be linked to your new savings account. That way, you could use your existing ATM or debit card to access the new account.ATM Fees: - A “foreign bank” is not in another country—it is any bank that is not affiliated with “MoneyWI$E Bank.” - When customers of one bank use another bank’s ATM, usually they are charged twice, once by their bank and once by the foreign bank. - These two fees can add up to $4 or more on a single withdrawal.
  • Emphasize the importance of recording bank fees and ATM and debit card transactions, in addition to checks, in your checkbook register. This keeps you up to date on how much money you have available.
  • Take some suggestions from participants before moving on to the the next slide.
  • Discuss these ways to save on account costs (continued on the next slide). Encourage participants to bring up any other suggestions they have for ways to save on costs.- Combining balances in your checking and savings accounts can help you to meet the minimum balance requirement and avoid monthly fees.- Save on ATM fees by using your own bank’s machines or those owned by banks that don’t charge fees to non-customers. Emphasize the importance of avoiding ATM fees. These days, if you withdraw $20.00 from another bank’s ATM, your bank or credit union may charge you $2.00 or more per foreign ATM transaction, and the foreign bank may charge you $1.50 or more. You may be left with only $16.50 or less.If you can’t avoid a fee, take out larger sums less frequently to avoid repeat fees on numerous smaller withdrawal. As an alternative to using another bank’s ATM, advise participants to get money back at the supermarket or drug store when using their debit card. -Use direct deposit for your paycheck or government benefits check. The money is sent to your account electronically. Direct deposit is faster, safer and more convenient and may make you eligible for a free account.
  • -If you don’t get free checks with your account, investigate check-printing prices from mail-order companies—they may be lower than those charged by your bank or credit union. (Let participants know some names of alternative check-printing companies; they are listed in the Banking Basics Leader’s Guide.)-Ask the bank or credit union to reverse the occasional late fee or bounced check fee.
  • If you give your permission (opt in), your bank will in most cases, but not all, cover your transaction for a flat fee of about $20-30 for each overdrawn item.For example, if you make a purchase with your debit card for $150 but only have $100 in your account, your account will be overdrawn by $50 and your bank or credit union will charge you a fee. If you then make an ATM withdrawal for $50, your account will be overdrawn by $100 and you will be charged another fee. In this example, if the fee your bank/credit union charges for its standard overdraft practices is $30, you will pay a total of $60 in fees. You could be charged multiple fees in one day.When you use your ATM or debit card and you don’t have enough money in your account to cover the transactions, your transactions will be declined. This may be frustrating, but if you don’t opt in you will avoid being charged a fee when this happens. In other words, you won’t spend money you don’t have and you won’t encounter any overdraft fees.TIP: If you write a check when you don’t have enough money in your account, or if you schedule a recurring bill payment, and you don’t have enough money in your account, your financial institution can pay it for you WITHOUT YOUR PERMISSION and charge you for each item it paid. Your opt in is ONLY REQUIRED for your financial institution to pay overdrafts on debit and ATM card transactions.If you opt in, you can cancel at any time. If you do not opt in, you can do so later.
  • Your bank or credit union may offer a line of credit or a link to your savings account to cover transactions when you overdraw your account. Banks/credit unions typically charge a fee each time you overdraw your account, but these overdraft protection plans may be less expensive than their standard overdraft practices.
  • Point out that the best way to catch bank errors and to clear up errors if they do occur is to keep your checkbook balanced and review bank statements as soon as you receive them.
  • Review these basics of how to effectively resolve errors or problems with banks or credit unions. - Contact your bank or credit union as soon as possible. You may be limited to 60 days from the date the mistake appeared in your statement.- Rehearse what you want to say before you call. This will help you present your issue effectively and keep you on point.- When you talk to a customer service representative at your bank or credit union, ask for the person’s name and write it down. Write down the dates and times of all conversations with bank employees. This will help you resolve your issue and, if necessary, make follow-up calls.- During the conversation, offer a solution and ask the representative to correct the problem by a certain date.- Summarize your discussion with the representative in a letter and send it to the bank by registered mail, receipt requested, or by email. Attach documentation of your issue or problem. (Make copies for the bank—do not give away your originals.) The letter shows you took timely action. Emphasize that writing a letter is a good way to get results if you have an issue with any company. Point out that participants can seek writing help from friends or family if they are worried about their writing skills.
  • Let participants know that this regulatory information is included in their “You Can Bank On It” brochure.--Banks with “national” in the name or N.A. after the name, and federal savings and loans and savings banks, are regulated by the Comptroller of the Currency, U.S. Department of the Treasury, 800-613-6743 (www.helpwithmybank.gov).--State-chartered banks are regulated by state banking authorities. To find your state agency, look in the government section of your white pages directory or on the Internet (http://consumeraction.gov/caw_state_resrouces.shtml).--Federally chartered credit unions are regulated by the National Credit Union Administration, 800-755-1030, www.ncua.gov.--If you don’t think your bank falls into any of these categories, contact the FDIC at 877-275-3342, which co-regulates any bank that is covered by FDIC insurance.
  • Hand out evaluation forms. Make sure students know that it is important to you to get their feedback in order to become a better teacher. Encourage them to fill out the evaluation form completely. Thank participants for taking time to talk with and listen to you; make sure you reinforce that you hope they found this experience as valuable as you did.

2011 banking basic_class_en 2011 banking basic_class_en Presentation Transcript

  • Welcome toBankingBASICS a YOU can bank on it © 2011 MoneyWI$EA CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • What will the „Banking Basics‟training teach us? We want you to have a thorough understanding of personal banking services and how they can benefit you. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • You will learn about:  Banks and credit unions  How to select a financial institution  How to open an account  How to keep account costs down  How to get more interest on your savings MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • Checking and savings accounts What are some of the advantages to having a checking and savings account? MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • Advantages of checking andsavings accounts include:  Your money is safe  Each account is insured  Checking account records provide proof that you paid bills and help you keep track of spending  Money in a savings account earns interest to help it grow  Less expensive than check-cashing stores and money orders MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • Banks and credit unions What is the difference between a bank and a credit union? MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • Banks  Banks are financial institutions that take deposits, engage in lending and operate for a profit  Banks offer checking and savings accounts to the general public MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • Credit unions  Credit unions are financial cooperatives that are owned by and serve individuals with a common affiliation • for example, a workplace, church, employees union, neighborhood, etc.  Credit unions offer checking and savings accounts to members MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • Account verification services How do banks and credit unions learn how you have handled your accounts in the past? MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • ChexSystems...  Is the major national„account verification‟company • When you apply for a new checking account, banks and credit unions search for your name in the ChexSystems database • If you ever abandoned an account, leaving a negative balance, you are probably listed in this database MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • ChexSystems records  Reports about overdrafts or closed accounts remain in your file for five years  You can get a free copy of your report by contacting ChexSystems at www.consumerdebit.com  You have the right to dispute inaccurate information in your account verification report MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • Your rights  You can get a free copy of your ChexSystems report if: • you have been denied an account in the past 60 days because of information listed in ChexSystems • your checks were stolen and used by an impostor or you are the victim of any banking or account fraud  Get a copy anytime for about $10 MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • Don‟t get discouraged  If you try to open a new checking account and are turned down by a bank or credit union because of your past account history, don‟t give up  Different banks and credit unions have different requirements, so shop around MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • ChexSystems sample report  Let‟s review the categories of the ChexSystems sample report: • Reported information • Drivers license validation • Drivers license verification • Consumer-initiated inquiries • Customer-initiated inquiries • Retail information • Check printing order history MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • Checking accounts What kinds of things can you do with a checking account? MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • Checking accounts  Checking accounts allow you to: • Pay bills with checks/online bill pay • Get cash, transfer money and make purchases using your debit card  Access your checking account: • At an ATM or bank branch • On your computer (online banking) • By phone or using a data-ready mobile device (mobile banking) MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • Banking/checking online  Also known as Internet banking  Via a secure website operated by your financial institution (or via an “app”)  Pay bills, view transactions, transfer funds between accounts  Benefits: convenient, low or no acct fees, quick access to info, savings on postage and checks  But, may still need to visit the ATM MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • Safe Internet banking  Make sure the institution is legitimate  Create a strong password  Keep your ID and password private  Don‟t fall for phishing scams  Be careful when using public wireless networks (Wi-Fi) or shared computers  Monitor account activity regularly MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • Keeping checking account fees incheck  Shop around for free or low-cost checking accounts • e-Accounts • Electronic transfer accounts (ETAs) • Basic (Lifeline) accounts • Low-cost accounts for seniors or students MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • Debit cards  You can use your debit card in these ways: • Enter your personal identification number (PIN) at an ATM or at a retailer‟s point-of-sale (POS) terminal • Sign a receipt • Swipe without a signature or PIN on purchases under $25 at some stores MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • Debit cards  If your debit card is lost or stolen: • Alert your bank or credit union as soon as possible. The longer you wait, the more money you might be responsible for if an unauthorized person uses your card to buy things. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • Check writing activity In this activity you will practice writing a check and entering it into a sample checking account register. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • Check writing Why is it important to enter your checks and debit transactions in your account register? MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • Keep a record of your transactions:  So that you don‟t forget checks, cash withdrawals, and purchases with your debit card • If you forget to record a transaction, it could overdraw your account. This could lead to a fee for “non-sufficient funds” (bounced check) being charged to your account.  So that you know how much money you have in your account  So that you can track your spending and stick to a budget MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • Savings accounts How is a savings account different from a checking account? MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • What is interest?  Interest is the cost of borrowing money • When a bank/credit union gives you a loan, you pay interest to them • When you keep your savings in a bank/credit union, they pay interest to you  APR, or annual percentage rate, is the annual amount of interest, expressed as a percentage of the amount loaned or borrowed MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • Types of interest  There are two types of interest: • Simple interest means that you only earn interest on your initial deposit • Compound interest allows you to earn interest not only on your initial deposit, but also on the interest you earn as you go along MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • Interest  Simple interest • $100 on deposit for 10 years at a 1% APR would earn $10 in interest  Compound interest • The same deposit, compounded monthly, would earn $10.51 (51¢ more because of compounding) • Compounding earns more, especially if you save regularly MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • In the second half of BankingBasics, we‟ll discuss: • How to earn more interest • Safe deposit boxes • Choosing and opening an account • Managing your checking account • How to resolve any issues with your account  See you then! MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • Certificates of deposit (CDs) What is a certificate of deposit? MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • Certificates of deposit (CDs)  A certificate of deposit, or CD, is a kind of savings account in which you leave your money on deposit for a set period of time in order to earn interest  The longer the term of your CD, the higher your interest rate will be  If you withdraw your money before the term ends, you will lose interest and might have to pay a penalty MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • Safe deposit boxes  What is a safe deposit box?  What are some things that you might keep in a safe deposit box? MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • What to keep in a safe deposit box  Copies of insurance policies  Birth, marriage and death certificates  Mortgages, leases and other important contracts  Stock and bond certificates and certificates of deposit (CDs)  Valuable jewelry MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • Safe deposit boxes What should you not keep in a safe deposit box? MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • Safe deposit boxes  The originals of your will and life insurance policies should not be kept in a safe deposit box  The box might be sealed at the time of your death and your survivors would need a court‟s permission to open it MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • Opening an account  Questions to ask: • What is the minimum to open an account? • What is the interest rate on the account? • Is there a monthly fee? • Is there any way to avoid monthly fees? - (more questions on next slide) MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • More questions to ask whenopening an account • Is there a maximum number of checks I can write each month? • Is there a fee for using your ATMs? • What happens if my balance falls below the minimum requirement?  TIP: Use the MoneyWI$E worksheet in your folders as a guide when you apply for an account MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • Opening an account What should you bring with you when you are opening a new account? MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • Identification  When you go to a financial institution to open a new account, bring: • Photo identification, such as a driver‟s license, state ID card or passport • Proof of your address, such as a utility bill or lease • Your Social Security number for tax purposes MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • Activity Sample savings account application  This is a sample application for an interest-bearing account at MoneyWI$E Bank  Lets walk through the activity together MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • Savings account application  Ownership  W-9 certification  Optional services • ATM cards • Linking accounts  ATM fees  Sign and date your application MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • Keeping your account straight  Once you have an account, write down and deduct in your check register: • Every check you write • Every debit card transaction you make (including “cash back” at stores) • ATM cash withdrawals • Any bank fees you pay • Any online transactions • Any automatic payments/deductions • All deposits and credits MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • Account costs How can you save money on account costs? MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • Ideas to keep account costs down  Combine checking and saving balances to avoid monthly fees  Save on ATM fees by using your own bank‟s machines  If you can‟t avoid an ATM fee, take out larger sums less frequently  Use direct deposit for your paycheck or government benefits check MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • Ideas to keep account costs down  Ask your local bank or credit union about accounts with free checks  Order from a reputable mail-order company  Check with the Better Business Bureau before buying checks from a company you are not familiar with  Write down all transactions and reconcile your account so you don‟t overdraw your account and incur overdraft fees MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • Standard overdraft protection  Your overdraft transaction is covered if you pay a fee  There is a separate fee for each overdraft transaction  You must give your permission (opt in) to allow overdrafts on debit card and ATM transactions  If you don‟t opt in, you can‟t be charged but your overdraft debit transactions will be declined MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • Overdraft protection plans  An optional bank service called overdraft protection waives overdraft fees  It can work with a loan or line of credit or with your savings account • For the line of credit, you must have a good credit history • You will be charged a small transaction fee when you overdraw your account • You‟ll pay interest on funds from the credit line when you use them MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • Resolving problems  Mistakes happen!  Bring issues or errors on your account or account statements to the attention of your bank or credit union  Don‟t delay—waiting too long could make a situation worse MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • Solving an account problem  Contact the financial institution as soon as you can  Write down the date of all calls and the names of the people who help you resolve the issue  Send a summary letter (by registered mail, receipt requested, or by email) to establish a “paper” trail on your problem (and keep copies of email)  Offer a solution and a date by which you hope to resolve the issue MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • Escalating your issue  Give your bank or credit union time to solve or report back to you on your problem  If you are not able to resolve your issue with your bank or credit union after a reasonable time, you can contact the institution‟s regulator  Call the FDIC at 877-275-3342 to find the name and contact info for your institution‟s regulator MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • Congratulations By attending the MoneyWI$E „Banking Basics‟ training, you‟ve empowered yourself to make good decisions about your account needs. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
  • Visit money-wise.orgfor additional information and to access free financial education materials MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP