Banking

Banking

Checking Account

With a checking account…

• Write a check

• ATM Card

• Debit Card

Writing a check

Company NameAddressCity, Sate Zip March 28, 2012

250.00Lincoln Electric Company

Two Hundred and fifty and 00/100 --------------------

March Electric Bill Jennifer Satorie

ATM Card

(Automated Teller Machine)

• Is a card that is linked to your bank account.

– Get cash fast

– PIN (Personal Identification Number)

Debit Card

• Used like a credit card

• Money comes out of your bank account automatically.

• Like a check with out the paper

• Money has to be there.

What are some options…

• Minimum balances

• Annual/ Monthly Fees

• Overdraft protection

• Insufficient funds fees

• ATM Fees

Savings Account

Savings Account• Money set aside for short term goals

• Can still get cash out when you need

• Usually gains interest

• Very safe • (FDIC – Federal Deposit Insurance Corporation)

Investing

Investing…

• Long term goals

• Money into longer term account

• Usually higher interest rate

• Usually fee to get money out early

Types of Investments

• Stocks– Own a part of a company– Can generate high returns (Buy low – Sell high)

• Bonds (US Govt, Corporate)– You are loaning the money to the government– Longer period of time (2-30 years)

• CD’s (Banks version of a Bond)– Certificates of Deposit – Loan money to the bank

cont…

• Mutual Funds– Usually done by an investor– Pools several investors money and invests

• IRA’s– Individual Retirement Account– Vary (before tax/after tax) - Usually a limit

• Retirement/ 401K– Money taken out and set aside to be used for

retirement