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