It You Can Bank On It Module 2 September 2018 1 PreTraining Survey See page 41 in your Participant Guide 2 Section 1 Financial Products Services and Providers Financial Products Services and Providers ID: 774884
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Module 2: You Can Bank On It
You Can Bank On It
Module 2
September 2018
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Slide2Pre-Training SurveySee page 41 in your Participant Guide
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Slide3Section 1: Financial Products, Services, and Providers
Financial Products, Services, and ProvidersSee page 4 in your Participant Guide
Section 1
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Slide4Section 1: Key Takeaway
Consider your needs and shop around for financial products and services.
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Slide5Financial Institutions:Banks and Credit Unions
Banks (including savings associations)Credit UnionsAccept deposits of moneyLend moneyMay offer other products and services, such as credit cards, car loans, personal loans, mortgages, and others
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Slide6Differences BetweenBanks and Credit Unions
BanksCredit UnionsCustomersMembersUsually nomembership criteriaMembershipcriteriaMost are ownedby shareholdersNot-for-profit organizations ownedby members
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Slide7Deposit Insurance—For Banks
Federal Deposit Insurance CorporationProtects funds depositors place in federally insured banks in case of bank failureInsurance up to at least $250,000 per depositor, per FDIC-insured bank, per ownership category
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Slide8Share Insurance—For Credit Unions
National Credit Union AdministrationProtects funds depositors place in federally insured credit unionsInsurance rules are similar to those of the FDIC
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Slide9Accessing Services
Access services through:Retail locationsAutomated teller machines (ATMs)Customer service phone numbers and emailWebsites Mobile banking and smartphone appsRequest reasonable accommodations if needed
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Slide10Products and Services Available at Financial Institutions
Deposit productsCredit productsOther products and services
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Slide11Deposit Products include…
Savings accountsChecking accountsCertificates of deposit Money market accounts
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Slide12Credit Products include…
Credit cardsLines of credit Installment loansMortgages
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Slide13Other Products and Services include…
Check cashingAutomated teller machines (ATMs)Money ordersATM cardsPrepaid cardsOnline or mobile banking and bill-paying servicesDebit cards“Person-to-person” payments (P2P)Cashier’s checksRemittance transfers
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Slide14Other Financial Service Providers
Convenience stores and U.S. Post Offices Stores that sell prepaid cardsCheck-cashing stores and outletsPayday lendersPawn shopsVehicle title lenders
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Slide15What Financial Products and Services Do You Need?
Financial products and services can help you:
Save moneySpend moneyManage moneyBorrow moneyStart with your needs
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Slide16Try It: What Do You Need to Manage Your Money? See page 8 in your Participant Guide
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Slide17Apply It: My Financial Management NeedsSee page 9 in your Participant Guide
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Slide18Apply It: My Banking ChecklistSee page 10 in your Participant Guide
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Slide19Six Sections inApply It: My Banking Checklist
My Needs and AccessChecking Accounts, Reloadable Prepaid Cards, and Other Transactional AccountsSavings AccountsDebit Cards and ATM CardsOverdrafts and Overdraft FeesOther Available Services
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Slide20Section 1: Remember the Key Takeaway
Consider your needs and shop around for financial products and services.
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Slide21Section 2: Opening an Account
Section 2
Opening an AccountSee page 14 in your Participant Guide
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Slide22Section 2: Key Takeaway
Know the general process for opening a savings or checking account, including options if you are initially unable to open an account.
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Slide23Savings and Checking Accounts
Safety and security from federal deposit insurance Earning interest, depending on the accountConvenienceRelationship-buildingImportant consumer protections
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Slide24Apply It: My Checklist for Opening a Savings or Checking AccountSee page 15 in your Participant Guide
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Slide25Apply In Person or Online
Complete an applicationVerify you are who you say you areDecide whether to “opt-in”Make first depositReceive disclosures, possibly sign documentsActivate account toolsAsk questions
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Slide26Banking History Reports
Everyone is not approved for an accountBanking history reports include information on: Unpaid negative balances on accountsSuspected fraud related to accountsCertain accounts closed by financial institutionRight to one free banking history report from each nationwide consumer reporting company every 12 months
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Slide27Apply It: Getting My Banking History ReportsSee page 17 in your Participant Guide
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Slide28Apply It: Filing a Dispute on My Banking History ReportSee page 18 in your Participant Guide
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Slide29Apply It: My Options for Opening an Account Despite ChallengesSee page 21 in your Participant Guide
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Slide30Possible Options
For This ChallengeConsider…Not enough money or account fees too highLow-cost account optionsNegative information in banking history report“Second chance” checking accountNegative information in credit reports and low credit scoresCredit-building loan, secured credit card, credit counselingNo Social Security numberOther identification documentsCannot open a particular accountAnother type of account;Perhaps a prepaid card
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Slide31Section 2: Remember the Key Takeaway
Know the general process for opening a savings or checking account, including options if you are initially unable to open an account.
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Slide32Section 3: Managing an Account
Section 3
Managing an AccountSee page 23 in your Participant Guide
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Slide33Section 3: Key Takeaway
Learn the rules of your account and keep track of how you use it. This can help you keep costs down and develop a positive banking relationship.
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Slide34Using a Savings Account
Build savings by depositing money and keeping it there to earn interestDesigned to save money for the futureOften offer higher interest rates than checking accounts that earn interestNot designed for high numbers of transactions
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Slide35Apply It: Managing My Savings AccountSee page 24 in your Participant Guide
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Slide36Managing My Savings Account
Read the rules of your accountKeep track of your deposits and withdrawalsReview your account statementsSet up email or text alerts, if possibleStay safe online
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Slide37Using a Checking Account
For frequent use and multiple transactions -- deposit money, pay bills, make purchases, access cashATM cards and debit cards Not the same thingMoney is taken out of your accountChecksTell your financial institution to pay money to someone else, the payeeSome checking accounts don’t use checks
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Slide38Overdrafts
Transaction goes through but there’s not enough money in the account to cover itPrograms to cover overdrafts for ATM card and debit card transactions Opt-in: Certain transactions processed for a feeDo not opt-in: Certain transactions declinedFinancial institutions decide if they will cover checks and other payments that would cause an overdraft if processedCovered: expect to be charged an overdraft feeNot covered: expect to be charged a non-sufficient funds fee and possibly a returned check fee
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Slide39Rodney: Overdraft Example
$50 in checking account with “opt-in” March 1 transactions:$15 birthday cake$25 gas$45 phone bill on auto-payResult: One or two overdraft charges of $35Depends on order transactions are processed
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Slide40Direct Deposit
Deposit money safely and securely into your account electronicallyNo need to make deposits in personMany employers offer direct deposit for paychecksMight be able to have part of your paycheck directly deposited into your savings account
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Slide41Automatic Bill Payment / Automatic Debit
Automatic Bill PaymentSchedule and send payments through your financial institutionOne-time or recurring paymentsAutomatic DebitGive permission to merchant or lender to take payments from your accountMake sure you have enough moneyin your account to cover these payments
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Slide42Try It: Learning the Parts of a CheckSee page 27 in your Participant Guide
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Slide43Example Check
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Slide44Apply It: Managing My Checking AccountSee page 28 in your Participant Guide
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Slide45Managing a Checking Account
Read the rules of your accountKeep track of your deposits and withdrawalsYou can use:A mobile appYour financial institution’s online banking systemAnother programA transaction register
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Slide46More Ways to Manage a Checking Account
Review your account statements Keep track of holds on your debit cardSet up email or text alertsConsider linking your checking account to your savings account or line of creditProtect your debit cardStay safe online
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Slide47Try It: Using a Transaction RegisterSee page 29 in your Participant Guide
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Slide48Try It: Using a Transaction Register--Answer Key
Check NumberDateTransactionWithdrawalDepositBalance $300 00 $300 00 4/3/19Local Market5000 25000 4/3/19USA Gas3000 22000 4/10/19Deposit 2800050000 4/13/19Auto Lender USA15000 35000 4/25/19Deposit 3000065000 4/28/19ATM5000 60000 4/28/19ATM Fee400 596007155/1/19Happy Properties50000 9600
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Slide49Try It: Using a Mobile AppSee page 31 in your Participant Guide
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Slide50Automated Teller Machine (ATM) Cards
Use an ATM for a variety of account transactionsAsk your financial institution about purchases with an ATM cardMoney comes out of your financial institution accountThere are various accessibility featuresKeep safety in mind
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Slide51Debit Cards
Do what ATM cards do, plus moreLook like credit cards because they have a card network logo on them But they are not credit cardsCan be processed on credit network, but still not using creditMoney is taken out of your checking account
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Slide52“Person to Person” Payments (P2P)
Money transfers to another personHelp with everyday money transactions, such as paying babysitter or reimbursing lunchDifferent P2P systems – each work differentlyRapidly changing area Keep in mind federal deposit insurance, fees, privacy, funds availability, and more
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Slide53Mobile Wallet Apps
Make point-of-sale purchases with your mobile device instead of a debit, credit, or prepaid cardKeep your device and information secureVisit OnGuardOnline.gov
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Slide54Section 3: Remember the Key Takeaway
Learn the rules of your account and keep track of how you use it. This can help you keep costs down and develop a positive banking relationship.
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Slide55Section 4: Prepaid Cards
Section 4
Prepaid CardsSee page 34 in your Participant Guide
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Slide56Section 4: Key Takeaway
Prepaid cards allow you to spend or access money loaded onto them. They usually aren't linked to a checking orsavings account. Beforeyou use one, review itsfeatures and fees.
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Slide57How Prepaid Cards Work
Not linked to a checking or savings accountAccess money loaded onto the card Load money in person, by phone, online, or through a mobile appUse direct deposit (some cards)Register card to use all its featuresNot the same as activating the card
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Slide58Kinds of Prepaid Cards
Reloadable prepaid cardsPayroll cardsElectronic benefit transfer (EBT) cardsCollege or university identification cardsPrepaid cards for specific stores or public transportation systems
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Slide59Try It: Features of Most Reloadable Prepaid CardsSee page 35 in your Participant Guide
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Slide60Try It: What Fees are Common to Reloadable Prepaid Cards?See page 35 in your Participant Guide
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Slide61Try It: A Prepaid Card or a Bank Account?See page 36 in your Participant Guide
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Slide62Apply It: Reloadable versus Debit—Which Card is Right for Me?See page 37 in your Participant Guide
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Slide63Lost or Stolen Prepaid Cards
Report loss, theft or charge you did not make right away to the card issuerProtections depend on type of card Generally must register card to get protections offered by card issuer
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Slide64Tips for Using Prepaid Cards
Review your account and dispute charges you did not authorizeUnderstand your card’s limitsKnow the fees and how to avoid themReport loss or theft immediatelyStay safe online
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Slide65Section 4: Remember the Key Takeaway
Prepaid cards allow you to spend or access money loaded onto them. They usually aren't linked to a checking or savings account. Before you use one, review its features and fees.
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Slide66Take ActionSee page 39 in your Participant Guide
What will I do?How will I do it?Will I share my plans with anyone? If so, who?
Visit fdic.gov/education to learn more
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Slide67Post-Training SurveySee page 43 in your Participant Guide
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