Financial Services

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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
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Basic Banking Services - Activity 1

SAFETY OF FINANCIAL INSTITUTIONS
COMMERCIAL BANKS

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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 lowincome 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.*
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Slide 2 – EITC
Lesson Reference: Basic Banking Services, Activity 1 – Handout 2

ACTIVITY 2

The Many Services
of a Bank
Overview
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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
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Money Transfer Organizations
Bank Transfers
Hand Delivery
Mail
Hawala
Post Offices
Stored Value Cards
Slide 1 – Remittance Options
Lesson Reference: Basic Banking Services, Activity 2 - Overhead 1


BANK OCCUPATIONS
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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!
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Slide 3 - Electronic Bank Services
Lesson Reference: Basic Banking Services, Activity 2 – Overhead 3


BANK CARD TYPES

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TYPE
• Check Cards or
ATM/Debit Cards

DESCRIPTION

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• Bank cards with preset, limited value.
• Used to pay for goods and services.
• Alternative to cash.

• Bank cards that allow for the payment
of goods and services to be subtracted
directly from a bank deposit account.
• Can be used with merchants that take
major credit cards—known as point of
sale (POS) transactions.

Slide 4 - Bank Card Types
Lesson Reference: Basic Banking Services, Activity 2 – Overhead 4


ELECTRONIC BANK SERVICES
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Direct Deposit
Transfers between Accounts
Transfers to a Third Party
Online Banking
Bank by Phone
ATM

Slide 5 – Electronic Bank Services

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.
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Slide 6 - Regulation of Electronic Banking
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

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Basic Banking Services - Activity 3


CHECKING ACCOUNT TERMS
• Bank Statement
• Cancelled Check
• Check
• Check Register/Ledger
• Endorsement
• Fee
• Interest
• Minimum Balance

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• Outstanding
Transactions
• Overdraft
• Overdraft Protection
• Payee
• Reconciling a Bank
Statement
• Transaction Limits

Slide 1 - Checking Account Terms
Lesson Reference: Basic Banking Services, Activity 3 – Handout 1


SHOPPING

AROUND
(THINGS TO
ASK ABOUT
WHEN
OPENING A
CHECKING
ACCOUNT)

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SERVICES
Location of bank
Location of ATMs
Banking hours
Minimum balance required
Minimum transactions or limits
Interest-bearing accounts?
Other
COSTS
Non-primary bank ATM transactions
In-branch transaction fees
Per-check fees
Other checking fees
Overdraft protection
Printing of checks
Slide 2 - Shopping Around
Lesson Reference: Basic Banking Services, Activity 3 - Handout 2


ACTIVITY 4

Opening a Checking
Account
Overview
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Checking Account Application Process
The Application
Acceptable Forms of ID
The Signature Authorization Card
The PATRIOT Act

Basic Banking Services - Activity 4


OPENING A CHECKING ACCOUNT

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Slide 1 – Opening a Checking Account
Lesson Reference: Basic Banking Services, Activity 4 – Handout 1


COMMONLY ACCEPTED FORMS OF ID
Primary ID*

• Photo Driver’s License issued
within the U.S. or Canada
• State Non-Driver Photo ID
• Photo Learner’s Permit
• Government Photo ID
• U.S. Passport
• Non-U.S. Passport
• Resident Registration Card

• Naturalization Certificate
• Employee Photo ID
(from a recognizable employer)
• Photo Trade License
(barber, plumber, electrician, etc.)
• Student Photo ID
(college/trade school)
• Medicare 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.

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Slide 2 - Commonly Accepted Forms of ID
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
of individual account should
be listed)

• Mortgage Statement

• Current Bank Statement

• Letter of Introduction from Bank,
Embassy, or well-known
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.

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Slide 3 - Commonly Accepted Forms of ID
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.
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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.
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Slide 4 – The PATRIOT Act
Lesson Reference: Basic Banking Services, Activity 4 – Overhead 1

SIGNATURE AUTHORIZATION CARD

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Slide 5 – Signature Authorization Card
Lesson Reference: Basic Banking Services, Activity 4 – Handout 3


ACTIVITY 5

How to Write a Check

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Basic Banking Services - Activity 5


WRITING A CHECK

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Slide 1 - Writing a Check
Lesson Reference: Basic Banking Services, Activity 5 – Handout 1


ACTIVITY 6

Maintaining a
Checking Account

Overview
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Check 21
Keeping a check register
Making a deposit into a checking account
Reconciling a bank statement
Maintaining a checking account
Avoiding Overdrafts
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.
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Slide 1 – Check 21
Lesson Reference: Basic Banking Services, Activity 6 – Handout 1


KEEPING A CHECK REGISTER

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Slide 2 - Keeping a Check Register
Lesson Reference: Basic Banking Services, Activity 6 – Handout 2