Finances (FINANCIAL INSTITUTIONS)

Name four reasons for keeping your money in a financial institution.

Safety - To keep your money safe from burglars. Convenience - Its easy to get your money out of the ATM when you need it. Growth - If you put your money in a savings account you can collect interest. Security - Leaving your money in the bank will make sure that even if your money is stolen you can get it back.

Jen heard that the bank where she kept her money was going to close for good. Jen said she wasn't worried. Select the most likely reason that Jen wasn't worried.

She knew that her money was insured by the FDIC.

Review

There are benefits to keeping your money in a financial institution. These benefits include safety, growth, convenience, security, financial future, and cost. There are three main types of financial institutions: banks, credit unions, and savings and loans. In this lesson, you looked at the differences between these organizations, as well as at factors that should affect which financial institution you select. These factors are: fees, locations, services, interest, hours, and minimum account balance.

bank

a business and financial institution; a safe place to keep your money

savings and loan

a financial institution that specializes in home loans

credit union

a nonprofit financial institution formed by a large corporation or organization for their employees and members

financial institution

a public or private organization that collects and invests money and offers financial services

A financial institution formed by a large corporation for their employees is a _____.

credit union

A financial institution always keeps all of your money in the vault.

false

Choose all that apply. The main types of financial institutions are _____.

savings and loans banks credit unions

Choose all that apply. When selecting a financial institution that is the best for you, you should consider _____.

services offered locations of banks and ATMs fees