• Activity 1………….Why Do You Need A Bank?

• Activity 2………The Many Services of a Bank

• Activity 3….The ABCs of a Checking Account
• Activity 4……….Opening a Checking Account
• Activity 5………………….How to Write a Check
• Activity 6…..Maintaining a Checking Account
• Activity 7……The ABCs of a Savings Account
 ACTIVITY 1
Why Do You
Need a Bank?
Overview

• Purposes of banks
• The differences between banks and
credit unions
• Safety of financial institutions
• Banks as money management tools
• The Earned Income Tax Credit

Basic Banking Services - Activity 1

 SAFETY OF FINANCIAL INSTITUTIONS

COMMERCIAL BANKS CREDIT UNIONS

Slide 1 – Safety of Financial Institutions

Lesson Reference: Basic Banking Services, Activity 1 – Overhead 3
 THE EARNED INCOME TAX CREDIT

The Earned Income Tax Credit (EITC) is a federal income tax credit for low-
income workers. The credit reduces the amount of tax an individual owes,
and may be returned to the taxpayer in the form of a refund. Some states
offer additional forms of EITC.

Eligible workers must have an annual income and investment income that
falls below a certain level. In tax year 2005, for example, if you are married,
have two or more children, and are filing your taxes jointly, your combined
annual income must not exceed $37,263. You must have a Social Security
Number to receive the EITC.

In tax year 2005, a family with two or more children could receive up to a
$4,400 refund through the EITC.*
Slide 2 – EITC
Lesson Reference: Basic Banking Services, Activity 1 – Handout 2
 ACTIVITY 2
The Many Services
of a Bank
Overview

• Financial services provided by a bank

• Bank employees
• Services that might be of personal benefit
• The impact of state and federal regulations
upon the security of a bank

Basic Banking Services - Activity 2

 REMITTANCE OPTIONS
TO SEND AND RECEIVE MONEY

1. Money Transfer Organizations

2. Bank Transfers
3. Hand Delivery
4. Mail
5. Hawala
6. Post Offices
7. Stored Value Cards
Slide 1 – Remittance Options
Lesson Reference: Basic Banking Services, Activity 2 - Overhead 1
BANK OCCUPATIONS

• Tellers
• Platform Bankers
• Mortgage Lenders
• Operations Manager
• Branch Manager

Slide 2 – Bank Occupations

Lesson Reference: Basic Banking Services, Activity 2 – Overhead 2
 ELECTRONIC BANK SERVICES
Online banking is the fastest growing Internet
activity in the U.S.

Types of Services

• Bank Cards

• Automated Services

Protect Your Passwords!

Slide 3 - Electronic Bank Services
Lesson Reference: Basic Banking Services, Activity 2 – Overhead 3
 BANK CARD TYPES
TYPE DESCRIPTION
• Check Cards or • Bank cards that allow for the payment
of goods and services to be subtracted
ATM/Debit Cards directly from a bank deposit account.
• Can be used with merchants that take
major credit cards—known as point of
sale (POS) transactions.

• • Bank cards with preset, limited value.

• Used to pay for goods and services.
• Alternative to cash.

Slide 4 - Bank Card Types

Lesson Reference: Basic Banking Services, Activity 2 – Overhead 4
 ELECTRONIC BANK SERVICES

• Direct Deposit
• Transfers between Accounts
• Transfers to a Third Party
• Online Banking
• Bank by Phone
• ATM

Slide 5 – Electronic Bank Services

0 Lesson Reference: Basic Banking Services, Activity 2 – Handout 3
 REGULATION OF ELECTRONIC
BANKING SERVICES
Electronic Fund Transfer Act
Protects consumers using any type of electronic
banking from loss and protects their privacy.

Banks must:
• Offer consumers a record or receipt for all computer
transactions.
• Investigate errors and report to consumer within ten days
of error notification.

Customers are responsible to report any errors.

Slide 6 - Regulation of Electronic Banking
1 Lesson Reference: Basic Banking Services, Activity 2 – Overhead 5
 ACTIVITY 3
The ABCs of a
Checking Account
Overview

• Purposes of a checking account

• Shopping for and comparing checking accounts

2 Basic Banking Services - Activity 3

 CHECKING ACCOUNT TERMS

• Bank Statement • Outstanding

• Cancelled Check Transactions
• Check • Overdraft
• Check Register/Ledger • Overdraft Protection
• Endorsement • Payee
• Fee • Reconciling a Bank
• Interest Statement
• Minimum Balance • Transaction Limits

Slide 1 - Checking Account Terms

3 Lesson Reference: Basic Banking Services, Activity 3 – Handout 1
 SERVICES
SHOPPING Location of bank
Location of ATMs
AROUND Banking hours
Minimum balance required
Minimum transactions or limits
(THINGS TO Interest-bearing accounts?
ASK ABOUT Other
WHEN
COSTS
OPENING A Non-primary bank ATM transactions
CHECKING In-branch transaction fees
ACCOUNT) Per-check fees
Other checking fees
Overdraft protection
Printing of checks
Slide 2 - Shopping Around
4 Lesson Reference: Basic Banking Services, Activity 3 - Handout 2
 ACTIVITY 4
Opening a Checking
Account
Overview

• Checking Account Application Process

• The Application
• Acceptable Forms of ID
• The Signature Authorization Card
• The PATRIOT Act

5 Basic Banking Services - Activity 4

 OPENING A CHECKING ACCOUNT

Slide 1 – Opening a Checking Account

6 Lesson Reference: Basic Banking Services, Activity 4 – Handout 1
 COMMONLY ACCEPTED FORMS OF ID
Primary ID*

• Photo Driver’s License issued • Naturalization Certificate

within the U.S. or Canada
• Employee Photo ID
• State Non-Driver Photo ID (from a recognizable employer)
• Photo Learner’s Permit • Photo Trade License
(barber, plumber, electrician, etc.)
• Government Photo ID
• Student Photo ID
• U.S. Passport
(college/trade school)
• Non-U.S. Passport
• Medicare Card
• Resident Registration Card (must be 65 or older)
• Mexican Consular ID
(Matricula Consular)
* Financial institutions' ID requirements may differ; check with the institution first before
applying for an account.
Slide 2 - Commonly Accepted Forms of ID
7 Lesson Reference: Basic Banking Services, Activity 4 – Handout 2
 COMMONLY ACCEPTED FORMS OF ID
Secondary ID*

• Foreign Driver’s License • Pay Stub

• State/Local Gun Permit • Car Registration

• Utility Bill (Name and address • Mortgage Statement

of individual account should • Letter of Introduction from Bank,
be listed) Embassy, or well-known
• Current Bank Statement Employer

• National Credit Card • Welfare Card

• Bank-issued Debit or Check Card • Supplemental Health

Insurance Card

* Financial institutions' ID requirements may differ; check with the institution first before
applying for an account.

Slide 3 - Commonly Accepted Forms of ID

8 Lesson Reference: Basic Banking Services, Activity 4 – Handout 2
 THE PATRIOT ACT
Congress passed the PATRIOT Act in response to the terrorist
attacks of September 11, 2001. Financial institutions are now
required to collect certain information when a new account is
opened.
1. The customer must provide identification that includes
name, date of birth, address, and identification number.
2. The institution must maintain a copy of the information used
to verify the person’s identity.
3. The institution must determine whether the applicant
appears on the lists of known or suspected terrorists or
terrorist organizations.
Slide 4 – The PATRIOT Act
9 Lesson Reference: Basic Banking Services, Activity 4 – Overhead 1
 SIGNATURE AUTHORIZATION CARD

Slide 5 – Signature Authorization Card

0 Lesson Reference: Basic Banking Services, Activity 4 – Handout 3
 ACTIVITY 5

How to Write a Check

1 Basic Banking Services - Activity 5

 WRITING A CHECK

Slide 1 - Writing a Check

2 Lesson Reference: Basic Banking Services, Activity 5 – Handout 1
 ACTIVITY 6
Maintaining a
Checking Account
Overview

• Check 21
• Keeping a check register
• Making a deposit into a checking account
• Reconciling a bank statement
• Maintaining a checking account
• Avoiding Overdrafts

3 Basic Banking Services - Activity 6

 CHECK 21
Check 21 is a federal law that helps banks handle
more checks electronically and that makes check
processing faster and more efficient.

Under this law, a check deposited in a bank is

typically “delivered” overnight to the paying bank and
deducted from the checkwriter’s account on the next
business day.

Money may be deducted from your checking account

almost immediately.
Slide 1 – Check 21
4 Lesson Reference: Basic Banking Services, Activity 6 – Handout 1
 KEEPING A CHECK REGISTER

Slide 2 - Keeping a Check Register

5 Lesson Reference: Basic Banking Services, Activity 6 – Handout 2
 MAKING A DEPOSIT - ENDORSING A CHECK

The Back Side of a Check

Restrictive
Endorsement
(most secure)

Blank Endorsement Endorsement to

(least secure) a third party

Slide 3 - Making a Deposit - Endorsing a Check

6 Lesson Reference: Basic Banking Services, Activity 6 – Handout 2
 MAKING A DEPOSIT -
COMPLETING A DEPOSIT SLIP

Slide 4 - Making a Deposit - Completing a Deposit Slip

7 Lesson Reference: Basic Banking Services, Activity 6 – Handout 2
 RECONCILING A BANK STATEMENT

Slide 5 - Reconciling a Bank Statement

8 Lesson Reference: Basic Banking Services, Activity 6 – Handout 2
 OVERDRAFTS AND BOUNCED CHECKS

Overdrafts and bounced checks occur when you complete a

financial transaction (e.g., write a check) for more than what
is available in the account. Your financial institution may pay
the amount and charge you a fee, known as an “overdraft
fee” or a “nonsufficient funds fee.”

Tip: Avoid overdraft or non-sufficient funds fees by making a

habit of monitoring the balance in your checking account.

Slide 6 – Overdrafts and Bounced Checks

9 Lesson Reference: Basic Banking Services, Activity 6 – Overhead 1
 ACTIVITY 7
The ABCs of a
Savings Account
Overview

• Purpose of a savings account

• Shopping for a savings account
• Applying for a savings account
• Monthly bank statement checkup

0 Basic Banking Services - Activity 7

 REASONS TO SAVE

• Emergencies

• Future Purchases

• Future Investments

Slide 1 - Reasons to Save

1 Lesson Reference: Basic Banking Services, Activity 7 – Overhead 1
 SHOPPING FOR A
SAVINGS ACCOUNT
Factors to consider:
• Safety
• Risk
• Liquidity
• Minimum Account Balance Requirements
• Fees and Service Charges
• Interest Rate
• Returns (Earnings)
• Automatic Transfer
• Direct Deposit
Slide 2 - Shopping for a Savings Account
2 Lesson Reference: Basic Banking Services, Activity 7 – Overhead 2
 OPENING A SAVINGS ACCOUNT

Slide 3 – Opening a Savings Account

3 Lesson Reference: Basic Banking Services, Activity 7 – Overhead 3
 BANK STATEMENT

Slide 4 – Bank Statement

4 Lesson Reference: Basic Banking Services, Activity 7 – Overhead 4