Clare, Jess, Jordyn

1. Financial Institutions
Jessica Dembrowski, Clare Krikorian, Jordyn Garcia

2. History of U.S. Banking System
● The Bank of the United States
○ 1791-1811
○ Second Bank of the United States
■ 1816-1832
● State governments supervised banks
● New national banks system
● National bank notes
○ Replaced by Federal Reserve notes in 1914.
● Great Depression
● Federal deposit insurance
○ Cover accounts up to $2,500
■ Now $100,000
● New technology

3. The Federal Reserve
● Congress wrote the Federal Reserve Act in 1913.
● Federal Reserve was made in the effort to build a more stable and secure financial
system
○ Responsibilities
○ Three parts

4. Essential Question #1
What are the four different types of banks, and how are they
similar and different?

5. Commercial Banks
● Take deposits from individual and institutional customers, and use it to extend
credit to other customers.
● Protects the funds depositors place in banks and savings associations.
○ Types
● FDIC (Federal Deposit Insurance Corporation)

6. Savings and Loan Association
● A financial institution that specializes in savings deposits and mortgage loans,
and is primarily used for mortgage by homeowners today
● Similar to other banks because it allows a checking account
● Unlike other banks, they put a much higher emphasis on residential mortgages.
They are also more locally oriented.
● Better interest
● More flexibility
● Loan security

7. Credit Unions
● Non-profit financial institutions that focus on helping their members save and
borrow and receive affordable financial services.
● Things they do
● Insured by the NCUSIF

8. Essential Question #2
What are the common features and services that are provided by
banks?

9. Mutual Savings Bank
● Created in 1816 for low income individuals, to serve as an investment in long-term fixed-rate assets,
such as mortgages.
● Very successful in the 1970’s, but crashed in the 1980’s.
● Similar to the savings and loan association, it is very centered around the big loans
● No member control
● Conservative tendencies
● Geographic and other limitations

10. vid

11. ATMs
● Specialized computer that allows bank customers to manage money
○ Withdraw money
○ Make deposits
○ Print a statement
○ Check balances
○ Transfer money
● Your bank's ATM
● Using another bank’s ATM

12. Direct Deposit or Withdrawal
● Deposit- Your employer can put money right into your account
● Withdraw- taking money directly from another person’s bank account

13. Point of Sales Transfers
● A method of electronic payment which allows money to be transferred from the
account of the shopper to the merchant in close-to real-time.
● Features

14. Online Banking Services
● System that helps individuals with banking at home or online.
○ Traditional banks
○ Online only
● Perform all banking activities
● Quick updates
● Drawbacks
○ Limited areas
○ Takes time to get used to
○ Mail in deposits
○ Hard to access some features

15. Overdraft Protection
● Allows people to buy the thing that they do not have the money to buy at that
exact moment, with their credit card

16. Stop Payment
● An authorized withholding of payment on a check
● Why would this be requested?
● How it works

17. Safe Deposit Boxes
● Used to put valuables into (does not have to be money)
● Found in banks, much like storage rooms and you are given your own personal
storage unit

18. Financial Counseling
● Gain knowledge and resources through counselling and education
● Helps individuals make adjustments to prioritize spending
○ Behavioral adjustments
○ Spending adjustments
● Referrals to other professionals
○ Investment advisors
○ Financial planners

19. Works Cited
"A Brief History of U.S. Banking." A Brief History of U.S. Banking. Web. 24 Mar. 2016.
"About Us." AFCPE. Web. 24 Mar. 2016.
"Bank Overdraft Protection: Do You Need It?" Bank Overdraft Protection: Do You Need It? Web. 24 Mar. 2016.
"Career and Professional Development." Commercial Banking. Web. 24 Mar. 2016.
"Federal Deposit Insurance Corporation." FDIC: Who Is the FDIC? Web. 24 Mar. 2016.
Federal Reserve. Consumer's Guide to a Direct Deposit. Federal Reserve.Www.fbservices.org. Federal Service System. Web. 24Mar. 2016.
"Mutual Savings Bank (MSB) Definition | Investopedia." Investopedia. 2009. Web. 24 Mar. 2016.
"Mutual Savings Bank Disadvantages." Mutual Savings Bank Disadvantages. Web. 24 Mar. 2016.
Rose, Sierra. "The Advantages of a Savings & Loan." EHow. Demand Media. Web. 24 Mar. 2016.
"The History & Responsibilities of the Fed." The History and Responsibilities of the Fed. Web. 24 Mar. 2016.
"What Is an ATM?" What Is an ATM? Web. 24 Mar. 2016.
"What Is a Savings and Loan Association?" InvestorGuide. Web. 24 Mar. 2016.
"What Is Online Banking? Definition and Meaning." InvestorWords.com. Web. 24 Mar. 2016.