Banking and Financial Services Chapter 17
Commercial bank
A bank that offers a full range of financial services
Check Register
A separate book form on which the depositor keep a record of checking account activities
Federal Reserve System
A system set up by the federal government to supervise and regulate member banks and to help bank serve the public
Credit Union
A user owned, not for profit cooperative financial institution
E-Banking services (Electronic Banking)
Automatic teller machines Payments at the point of sale Direct deposit Automatic bill payments
Type of endorsements
Bank Full Restrictive Special Deposit Restrictive
The reconciliation Process
Bank statement information Determine checks paid Find differences Calculate adjusted balance
Banking in the Future
Bank transactions from anywhere (Text message updates) Personalized systems for obtaining, transferring and using funds (Apple pay)
Bank reconciliation
Bringing balance into agreement
Travelers check
Buy at banks, credit unions and travel agencies Require your signature in 2 places Sign each one when they are bought Commonly accepted throughout the world
Other types of payment
Certified Cashiers check Travelers check Money order's
Outstanding checks
Checks you have not cleared or paid
Deposit institutions
Commercial bank (Like BOFA) Savings and loan associations Mutual Savings bank Credit Unions
Benefits of checking accounts
Convenience and ease of making payments Safety to make payments with less risk than using cash Proof of payment A record of finances for managing your money
Electronic Payment options
Debit car transactions Online payments Stored value cards Smart cards
Types of Financial Institutions
Deposit institutions Non-deposit financial institutions
Cashiers Check ******
Draws on its own funds (****) Costs the amount of a check plus a service fee more acceptable than personal checks
Check writing procedures
Elements of a check Check Register Writing a check Proper Check Writing Stopping Payment
Money orders
Form of payment that orders the issuing agency to pay the amount printed on the form to another party Bank Money Order Postal money order Express money order Telegraphic money order
Certified Checks ***
Guaranteed money (****) Certification stamped on face Signed or initialed by a bank officer
Non deposit Financial institutions
Life insurance companies Investment companies Consumer finance companies Mortgage company Check cashing outlets Pawnshops
Compare checking accounts
Minimum Balance Interest rate earned (if any) Monthly service charge Fees for other services, such as printing checks and stop payment orders Other restrictions
3 main types of checking accounts
Regular checking account Interest earning Special
Types of Checking Accounts
Regular checking accounts, interest earning Checking accounts Special checking accounts
Types of Financial Services:
Saving services Payment Services Lending services electronic banking Storage of valuables Investment advice Management of trusts
What are the main financial services used by consumers?
Savings Payment Lending
Selecting a financial institution Services Offered:
Savings account Checking and payment account Loans and other credit plans Other services such as safe deposit boxes
Selecting a financial institution:
Services offered Safety convenience (ATMs, bank times) Fees and charges (overdraw fee) Restrictions
The first deposit:
Signature card Join account Deposit slip
What is the main purpose of the federal reserve system?
Supervise and regulate member banks
The banking systems:
The federal reserve system Federal reserve activities Banking and the economy
Endorsement
Written evidence that a person received payment or transferred the right to receive payment tot someone else
debit card
a bank issued card used for ATM transactions
Safe deposit box
a container for storage of valuables offered by banks
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Bank statement
monthly, bank will send you a status of your account
service charge
the fee a bank charges for handling a checking account
Stop Payment order
written notice that tells the bank not to pay a check
