Name:

Chapter 5 Notes - Banking

  1. Types of Financial Services




  6. Savings:


  9. ______– money that is left in a financial institution for months or years
  10. Payment Services

  12. ______– money in a financial institution that can be withdrawn at any time. (ex: checking account)
  13. List two short-term borrowing methods.


  16. List two long-term borrowing methods


  19. Other financial services:




  24. Direct Deposit -
  25. Automatic Payment -
  26. ATM –

  28. May also make
  29. Must have a ______
  30. Debit Card -
  31. Personal Identification Number (PIN) -
  32. Three ways to keep your PIN Safe:



  36. If you debit card is lost or stolen you should ______.
  37. Point-of-sale transaction –
  38. Stored-value card -
  39. Federal Deposit Insurance Corporation (FDIC):


  3. Currently protects up to ______but will return to ______protection in 2010

Deposit Institutions

  1. Commercial banks –
  2. Savings and Loan Associations –
  3. Mutual Savings Banks –
  4. Credit Union –

Non-Deposit Institutions

  1. Life Insurance Companies –
  2. Investment Companies –
  3. Finance Companies –
  4. Mortgage Companies –
  5. Types of Savings Plans




  10. Regular savings account
  11. Sometimes called ______


  14. Are called ______at credit unions
  15. Certificate of Deposit (CD)

  17. The stated period of time is called the ______.
  18. The date when the money becomes available to you is called the ______.
  19. Limitations on CD’s

You have to:




  1. Money Market Accounts
  2. Savings account that requires a

  4. U.S. Savings Bond
  5. Also called a ______
  6. Can range from ______with face values of ______
  7. ______depends on the date it was purchased an the interest rate on the bond
  8. Can be penalized for ______
  9. Factors that Influence the Selection of a Savings Plan





  15. Rate of return -
  16. Compounding -
  17. Truth in Savings

Law that requires financial institutions to inform you of:





  1. APY -
  2. If inflation rises above your ______, then your money loses value and buying power.
  3. Beware of savings plans that lock you into ______for extended periods of time.
  4. You must pay taxes on your ______. When saving money, look into tax-exempt and tax-deferred savings plans.
  5. If you need to be able to withdraw your money easily, use a ______.
  6. If you are saving for long term goals, use savings plans with ______and ______.
  7. When choosing a savings plan:

Look for:




  1. Regular Checking Accounts
  2. Usually does not require ______
  3. Accounts that do require a min balance will usually charge you ______if you drop below the in minimum balance
  4. Activity Accounts
  5. Charge a fee for
  6. Also charges ______

  8. Should only be used if
  9. Interest-Earning Checking Accounts
  10. Combination of ______
  11. ______
  12. If you do not maintain minimum balance,
  13. Factors that Influence the Selection of a Checking Account




  18. Special Services




  23. Stop payment order -
  24. Bank reconciliation -
  25. Endorsement -
  26. Types of endorsement
  27. Blank Endorsement –
  28. Restrictive Endorsement –
  29. Endorsement in Full – (transfer)
  30. Tips for Endorsing a check





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