STUDENT WORKSHEET
Comparing Bank and Credit Union offers
Using the following worksheet, compare and contrast the following information at local banks and credit unions.
Definitions KEY:APY / Annual Percentage Yield. The APY is a measure of the interest expressed as a yearly interest rate. Usually, the higher the APY, the more interest you will earn.
Minimum balance to open: / The lowest amount an institution requires when opening an account.
Minimum balance to avoid fees: / How much must be kept in the account based on agreement terms. If the account goes below this amount, a charge is levied.
Monthly fees: / Fee charged to customers under the terms of the account.
Nonsufficient funds (NSF) fees: / The amount of money charged to an account holder whose account did not have enough funds available to pay a check or debit expense. (The bank did not advance the funds to cover a check.)
Fees to use another bank’s ATM: / charge for using an ATM that is not owned by the account holder’s bank.
Online access: / Whether or not the bank allows you to access your account information online.
Consumer Loan Comparison:
Using: , research and fill in the Consumer Loan rates below:
Type of Consumer Loan / Credit Union Average % / Bank Average %5 Year New Car Loan
4 Year Used Car Loan
4 Year Unsecured
Personal Loan
Why do you think used car rates are higher?
What is an unsecured loan?
Which type of institution has the best rates?
Why do you think that is?
Savings Comparison:
Using: research savings rates comparing Bank versus Credit Union, and a “teaser” rate (only from the Credit Unions)
Type of Savings Account / Credit Union Average % / Bank Average %Personal Savings
Money Market
(Personal MMDA)
Promotional “Teaser” Rates / % APY / Qualifications
What is a “Teaser” Rate?
SECU – School Employees Credit Union
BECU – Boeing Employees Credit Union
Checking Account Comparison:
Using research four different checking account offers (traditional vs. online, interest vs. non-interest accounts:
Name of Institution / APY(Annual Percentage Yield) / Minimum Balance to Open / Minimum Balance To Avoid Fees / Monthly Fees / NSF Fees / Other ATMs
Traditional Bank
Non -Interest Checking
______
Name of Institution / APY
(Annual Percentage Yield) / Minimum Balance to Open / Minimum Balance To Avoid Fees / Monthly Fees / NSF Fees / Other ATMs
Traditional Bank
Interest Checking
______
Internet - Based Bank
Interest Checking
______
Why is there no APY for non-interest checking?
What does interest checking require a minimum balance?
Which of the above accounts would you choose and why?