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Depository Institutions Take Charge of Your Finances 1.7.3
Depository Institutions <ul><li>Depository Institutions  – businesses which offer multiple services in banking and finance...
Depository Institutions
<ul><li>Services include: </li></ul>Federal Reserve Bank
Federal Reserve Bank <ul><li>Which federal reserve bank located in your region? </li></ul>
Commercial Bank <ul><li>Commercial Banks   </li></ul><ul><ul><li>Usually the largest depository institutions  </li></ul></...
Credit Union <ul><li>Credit Unions   </li></ul><ul><ul><li>Non-profit cooperative depository institution </li></ul></ul><u...
Savings and Loan Association (S&Ls) <ul><li>Savings and Loan Association </li></ul><ul><ul><li>Focus on providing loans an...
Types of Insurance <ul><li>Federal Deposit Insurance Corporation (FDIC) </li></ul><ul><ul><li>Federal government agency wh...
Insurance Protection <ul><li>Insurance protection </li></ul><ul><ul><li>Each depositor is insured up to $250,000 for money...
Interest <ul><li>Interest  - the amount of money that is either gained or lost when accessing services offered by a deposi...
Common Services Offered
Additional Services Which May Be Offered <ul><li>Safe-Deposit Box </li></ul><ul><ul><li>A secured box in a bank to be used...
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Depository institutions

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Depository institutions

  1. 1. Depository Institutions Take Charge of Your Finances 1.7.3
  2. 2. Depository Institutions <ul><li>Depository Institutions – businesses which offer multiple services in banking and finance </li></ul><ul><ul><li>These institutions include: </li></ul></ul><ul><ul><ul><li>Banks </li></ul></ul></ul><ul><ul><ul><li>Savings and Loans </li></ul></ul></ul><ul><ul><ul><li>Credit Unions </li></ul></ul></ul><ul><ul><li>They are regulated by various state and federal agencies </li></ul></ul>
  3. 3. Depository Institutions
  4. 4. <ul><li>Services include: </li></ul>Federal Reserve Bank
  5. 5. Federal Reserve Bank <ul><li>Which federal reserve bank located in your region? </li></ul>
  6. 6. Commercial Bank <ul><li>Commercial Banks </li></ul><ul><ul><li>Usually the largest depository institutions </li></ul></ul><ul><ul><li>Considered full-service depository institutions </li></ul></ul><ul><ul><li>Available to a variety of consumers </li></ul></ul><ul><li>Examples – Wells Fargo, US Bank, Chase Bank </li></ul>
  7. 7. Credit Union <ul><li>Credit Unions </li></ul><ul><ul><li>Non-profit cooperative depository institution </li></ul></ul><ul><li>Owned by members who share a common bond </li></ul><ul><li>Examples – Rocky Mountain Credit Union, Teachers Federal Credit Union </li></ul>
  8. 8. Savings and Loan Association (S&Ls) <ul><li>Savings and Loan Association </li></ul><ul><ul><li>Focus on providing loans and mortgages </li></ul></ul><ul><li>Customers must have a savings account with them </li></ul><ul><li>Examples – American Federal Savings Bank, Pioneer Federal Savings & Loan. </li></ul>
  9. 9. Types of Insurance <ul><li>Federal Deposit Insurance Corporation (FDIC) </li></ul><ul><ul><li>Federal government agency which protects depository institution accounts </li></ul></ul><ul><ul><li>Insures commercial banks and savings and loan associations </li></ul></ul><ul><li>National Credit Union Administration (NCUA) </li></ul><ul><ul><li>Provides insurance for credit unions </li></ul></ul>
  10. 10. Insurance Protection <ul><li>Insurance protection </li></ul><ul><ul><li>Each depositor is insured up to $250,000 for money deposited in a regular account and $250,000 for retirement deposits </li></ul></ul><ul><ul><li>Available from both FDIC and NCUA </li></ul></ul><ul><li>Insurance is important because of the risk of loss </li></ul>
  11. 11. Interest <ul><li>Interest - the amount of money that is either gained or lost when accessing services offered by a depository institution </li></ul><ul><li>Interest rate - the percentage used annually to calculate the total interest either gained or lost </li></ul>Type of account Interest rate Impact on the consumer Interest bearing - money earned from an investment instrument High More money earned by the consumer Low Less money earned Interest bearing - the charge for money that a consumer borrows from a depository institution High More money paid by the consumer Low Less money paid Credit unions typically offer rates which have the most positive impact on the consumer
  12. 12. Common Services Offered
  13. 13. Additional Services Which May Be Offered <ul><li>Safe-Deposit Box </li></ul><ul><ul><li>A secured box in a bank to be used for valuable and important personal items. </li></ul></ul><ul><li>Financial Counseling </li></ul><ul><ul><li>Information and advice is given to customers to help make financial decisions. </li></ul></ul>

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