Mr Bernstein Sources of Consumer Credit pp 154161 March 12 2013 Stock Market Analysis amp Personal Finance Mr Bernstein Sources of Consumer Credit Commercial Banks ID: 622097
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Slide1
Stock Market Analysis and Personal Finance
Mr. Bernstein
Sources of Consumer Credit,
pp
154-161
March
12,
2013Slide2
Stock Market Analysis
& Personal Finance
Mr. Bernstein
Sources of Consumer CreditCommercial BanksConsumer Finance CompaniesCredit UnionsSavings and Loans (“Thrifts”)Life Insurance Companies
2Slide3
Stock Market Analysis
& Personal Finance
Mr. Bernstein
Sources of Consumer CreditCommercial Banks Personal Loans Auto Loans or other Collaterialized Loans
Credit Cards
Consumer Finance Companies
Credit Unions
Savings and Loans (“Thrifts”)Life Insurance Companies
3Slide4
Stock Market Analysis
& Personal Finance
Mr. Bernstein
Sources of Consumer CreditCommercial BanksConsumer Finance Companies Little Credit History Needed Will Loan up to 100% of purchase value
Quick Approval
Often Expensive
Credit UnionsSavings and Loans (“Thrifts”)Life Insurance Companies
4Slide5
Stock Market Analysis
& Personal Finance
Mr. Bernstein
Sources of Consumer CreditCommercial BanksConsumer Finance CompaniesCredit Unions Members Only
Payroll Deduction Plans possible
Non-profit
Savings and Loans (“Thrifts”)
Life Insurance Companies5Slide6
Stock Market Analysis
& Personal Finance
Mr. Bernstein
Sources of Consumer CreditCommercial BanksConsumer Finance CompaniesCredit UnionsSavings and Loans (“Thrifts”) Home Improvement
Second Mortgage Loans (Home Equity Loans)
At one time were considered local Real Estate experts
Life Insurance Companies6Slide7
Stock Market Analysis
& Personal Finance
Mr. Bernstein
Sources of Consumer CreditCommercial BanksConsumer Finance CompaniesCredit UnionsSavings and Loans (“Thrifts”)Life Insurance Companies
Borrow against cash value of policy
Balance outstanding deducted from death benefits
7Slide8
Stock Market Analysis
& Personal Finance
Mr. Bernstein
Credit Cards“Collateralized Credit Card” builds credit ratingWatch the “gotchas”: Grace period for late payment without finance fee Annual fee can be $50-$500
Transaction fees
Know how payments can be made without delays
High interest rates are common…so…Plan to pay your credit card balance every month
8Slide9
Stock Market Analysis
& Personal Finance
Mr. Bernstein
Types of Personal Banking Financial ServicesChecking AccountsSavings AccountsCDsDebit CardsCredit CardsDirect Deposit
Overdraft ProtectionBill Paying
ATMs
9Slide10
Stock Market Analysis
& Personal Finance
Mr. Bernstein
Other Financial Services offered by Banks*Personal and Auto LoansHome Mortgages and Home Equity Loans*Investment and Retirement Products*Home, Life and Auto Insurance*
*These products and services are typically offered by another d
ivision of the bank or even an outside partner. Your local
branch office is essentially acting as a sales conduit,
making a helpful introduction to another entity.10Slide11
Stock Market Analysis
& Personal Finance
Mr. Bernstein
Why do banksoffer otherServices?11Slide12
Stock Market Analysis
& Personal Finance
Mr. Bernstein
CD rates,1965-present12Slide13
Stock Market Analysis
& Personal Finance
Mr. Bernstein
CD rates,1965-present13Slide14
Stock Market Analysis
& Personal Finance
Mr. Bernstein
Fed FundsRate1952-present14Slide15
Stock Market Analysis
& Personal Finance
Mr. Bernstein
Interest Rates for SaversWhy are rates currently so low?Is it reasonable to assume rates likely to remain low throughout your lifetime?What is the relationship between inflation and interest rates?15