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FDIC (Federal Deposit Insurance Corporation) – In 1934, the U.S. government agency created protection of your money by insuring your deposits. Each account category is insured up to $250, Mutual funds, annuities, life insurance policies, stocks & bond are noninsured.
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Banking Institutions
Selecting a Banking Institution:
• Location • Convenience• Interest rates• Insured by the FDIC• Financial services• Safety and Security• Service fees
FDIC (Federal Deposit Insurance Corporation) – In 1934, the U.S. government agency created protection of your money by insuring your deposits. Each account category is insured up to $250,000.00Mutual funds, annuities, life insurance policies, stocks & bond are noninsured.
What if your bank is in financial trouble?
• FDIC comes to the rescue
• There has never been a loss of insured deposits by individuals since the FDIC was founded.
Kinds of Checks
• Certified – The bank guarantees that there are funds to cover the amount of the check.
• Cashiers – This check is drawn by the bank on itself after you pay the amount of the check.
• Personal – This is a written order drawn on a checking account to pay cash on demand.
Endorsing Checks
Blank endorsement :
payee’s signature
Sign your name exactly the same way it is written on the front of the check
If it is spelled wrong on the front then sign it again with the correct spelling.
Restrictive For deposit only OR For deposit to
account no. 7832894
payee’s signature
For deposit only George Leon
Special endorsement: Transferred to someone else (a third party)
Write Pay to the Order Of, then name, sign by payee, finally person’s signature who is to cash the check
Pay to the order ofLindsey StormSara ThomasLindsey Storm (Lindsey’s signature)
FORGING OR ALTERING A CHECK IS A CRIMINAL ACT.
Sign another person’s name to a check
Endorse it & try to cash it Make up a name & sign it Changing the amount of the
check
Tracking Your Checking Account:
• Checks & debit card transactions are debited from accounts very quickly. There is very little or no waiting period so be careful not to “bounce a check”.
What to write down in your check register:
• Deposits in checking account
• When you write a check
• Use your debit card
• Use the ATM
• Deduct a fee that the bank charges
• Withdraw money from your account
TIP: keep up with check register at the moment and not try to remember to fill it in later. Without a paper record you cannot see errors in transactions.
The End
FINANCIAL INSTITUTIONS
The mission of a financial institution is to keep money moving and in use.
1. Commercial Bank
2. Credit Unions