Consumer Banking

“You as a consumer”&

“Banking”

A consumer is someone who buys or uses

goods and services Consuming involves 3 stages

1. Making Choices Products and Services

2. Buying Wisely Wants vs. Needs Brand Name vs. Generic

3. Using goods and services properly

What is Consuming?

Commercial Banks

Full-service banks Checking, savings, loans, safe deposit boxes,

credit cards, ATM’s, money orders, traveler’s checks

Savings & Loans Associations Started in the early 1800’s Groups of people pooled their money together

so that each could borrow

Financial Institutions

Credit Unions

Nonprofit savings and loan cooperative associations Made up of people who have something in common,

like place of employment Members govern credit unions

Changes in Financial Institutions As a result of the 2008/2009 recession interest rates

have become much more competitive among banks These institutions now actively compete for business

which benefits the consumer

Financial Institutions

ATM’s

24-hour banking Online Banking

Pay bills, transfer money, check account balances Mobile banking

Smartphone Direct deposit or withdrawals Point-of-sale transfers

Debit card

Electronic Banking

Most commonly used banking service Checks are safer than carrying cash Make it easy to keep track of transactions

Cancelled check is a check that has been paid and is legal proof of payment

They are electronically scanned and processed Once processed it is considered ‘cleared’ or paid

There are different types Minimum balance account Cost-per-check account (special account) NOW account – interest bearing

Checking Accounts

Research and choose a financial institution You will fill-out a ‘signature card’

Name Address Phone number Social Security number Signature

Safeguards your account against fraud/forgery

Opening a checking account

1. Your name and address (account holder)2. Date3. Check number4. Payee5. Numerical amount6. Written amount7. Bank information8. Purpose or account number 9. Signature10.Bank routing number and account holder’s account

number

Parts of a check

Check example

Your name here (1)(3) 5001

AddressPhone (2) ________________ __________

(4) (5)Pay to the order of ______________________________________________________________ $

_(6)___________________________________________________________________________________ Dollars

Bank of USA (7)2123 Main StreetCicero, NY 13031

For ________________________________(8) (9)____________________________________________________|:021989478|: 756420855808” 5001 (10)

Where you keep a record of checks written,

deposits made, and other transactions

Keeping a Check Register

Balance Number

Date

Description of Transaction

Payment/Debit

(-)

T Fee

Deposit/Credit(+)

$ 150

 00

 5001  5/16

 Wegmans $ 25

 00

  $ $    125 00

                                                                                                                              

Your signature on the top back side of the check Blank endorsement

Simply your written signature Restrictive endorsement

Message or signature that restricts the use of the check

“For Deposit Only” Full endorsement

When you want to pay someone else with a check that was written out to you

“Pay to the order of…”

Endorsing a Check

Depositing money into an account, use a

‘deposit ticket’ Preprinted slip that comes with your checks Used to deposit any combination of currency,

coins, and checks ‘statement of account’ is the summary of all

transactions completed in a checking account for a given period of time

Paper form in the mail or accessible online

Deposit Tickets & Statements