Bank Services using M

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Bank Servicesusing MT Bank as example
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Savings Accounts
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Types of Savings Accounts

• MT Starter Savings - for people under 18
• no monthly fee
• free web banking
• free ATM access
• Relationship Savings
• no monthly fee if have checking acct
• free web banking
• free ATM access

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Types of Savings Accounts

• MT Market Advantage - 3.5
• for maintaining significant savings
• no monthly fee if over 2,500
• tiered interest rates, depending on
  balance
• Certificates of Deposit
• 3 months to 10 years, fixed interest
  rate
• minimum balance of 1,000

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What is a Certificate of Deposit?

• CDs are similar to savings accounts in that they
  are insured and thus virtually risk-free they
  are "money in the bank".
• They are different from savings accounts in that
  the CD has a specific, fixed term (often 3
  months, 6 months, or 1 to 5 years), and, usually,
  a fixed interest rate.
• It is intended that the CD be held until
  maturity, at which time the money may be
  withdrawn together with the accrued interest.

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Checking Accounts
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Types of Checking Accounts

• Basic
• no minimum balance
• free atm access
• College Checking
• no minimum balance
  e-Statements
• free atm access free
  Web banking
• no service fee free
  Web bill pay
• MT check card

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Debit Card vs Credit Card

• Debit Card
• - Easier to obtain
• Uses money you have
• On-line - immediate electronic transfer of funds
  OR Offline - takes 2-3 days
• Usage grew 3 times faster than credit card
  2005-2007

Credit Card - Harder to obtain - Uses money you
dont have - Uses a merchant account -
ie Visa, MasterCard - Usage is slowing
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Debit Cards Credit Cards
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Credit Card Factssource Federal Reserve and
VISA USA

• Of households that have credit card debt, median
  is 2,200 balance.
• 40 of credit card holders pay their balance in
  full every month. 60 dont.
• 1 out of 10 has more than 10 credit cards.
  Average is 4 cards.
• Typical consumer has access to 19,000 on all
  credit cards combined.
• 23 increase in 5 years of use of cards that
  accumulate points (for merchandise or airline
  tickets)
• U.S. VISA transactions conduct more than
  1,000,000,000,000 (1 trillion) in annual volume.

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Debit Card Factsaarp.org - Managing Money

• Generally dont have to show ID or sign at
  purchase
• Faster in checkout than checks or credit cards
• No interest
• Lower processing fees to storeowner than credit
  card
• Less protection than credit card if something
  goes wrong with your purchase
• Less protection than credit card if card is
  stolen or mis-used

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How Do I Know My Money is Safe?
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FDIC Insurance(Federal Deposit Insurance
Corporation)

• Formed June 16, 1933
• United States government corporation created by
  the Glass-Steagall Act of 1933.
• Created because of the number of bank failures
  during the Great Depression.
• Glass-Steagall Act separated banks into
  commercial and investment banks. Insured
  commercial bank deposits.
• Provides deposit insurance which guarantees the
  safety of checking and savings deposits in member
  banks, currently up to 100,000 per depositor per
  bank
• FDIC currently has 4,125 employees

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FDIC Insurance

• FDIC Insurance covers
• Checking Accounts
• Savings Accounts
• Certificates of Deposit

• FDIC Insurance does not cover
• Stocks
• Bonds

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So, what happens if my bank fails?My Money Your
Money.com

• FDIC steps in and takes a role as receiver.
• FDIC will try to sell failed bank to other bank
  and awarded the failed bank to another bank, bank
  re-opens with a new name and do a business as
  usual.
• If FDIC couldnt find any buyer, it will sell the
  institutions assets to pay depositors and
  creditors. This may take few weeks to months
  until you see your insured money back.
• Since the start of the FDIC in 1933, no depositor
  has ever lost a penny of insured deposits.

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FDIC Lessons

• Never exceed FDIC insurance limits, as you may
  NEVER be able to get your uninsured money back.
• New Bail-Out bill raised FDIC insurance limits
  to 250,000.