Personal Financial Literacy: Banking Institutions

Traditional banks do not fit everyone's needs when it comes to banking.

Which of these represent a con of using a traditional bank?

Choose 1 answer:

• Their staff is more likely to recommend the wrong financial product.

• They have membership requirements.

• 
  They are not personal or friendly.

• They offer a limited variety of financial services.

A banking institution that might give you more money for saving and charges lower fees, but you have to qualify for membership to join.

Which banking institution is described above?

Choose one answer.

• commercial bank

• traditional bank

• online bank

• credit union

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A credit union offers a lot of benefits to its members.

What is one benefit of using a credit union?

• They offer more services than commercial banks.

• They pay higher interest overall.

• They have branches across the country.

• They are open to anyone.

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As a business person, you travel to major cities regularly. Your business relies heavily on cash, so you need a bank that offers easy access to no-fee ATMs around the country.

Which banking institution works best for your situation?

• credit union

• traditional bank

• commercial bank

• online bank

Tags

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Commercial banks (also known as big banks) offer a variety of accounts and services, but they might not be the best fit for everyone.

Which of these is a disadvantage of big banks?

• They require that you use a computer or app to bank with them.

• They only accept customers that live or work in a certain county.

• They do not have many physical buildings.

• Their rates and fees may not the best.

Banks that have well known names will usually have a lot of physical branch locations, but they usually pay less interest on savings.

Which banking institution is described above?

• traditional bank

• commercial bank

• credit union

• online banking

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Online banks don't have physical branches, but they do have a few advantages over traditional banks.

What is one benefit of using an online bank?

• They offer safe deposit boxes.

• 
  They re-invest profits to offset fees.

• They offer a large network of ATM machines.

• They pay higher interest.

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You are looking for a place for your elderly relative to bank. When talking to them about financial institutions, you discover they value in-person service, a welcoming environment, and a local atmosphere.

Which banking institution works best for this situation?

• credit union

• traditional bank

• online bank

• commercial bank

Tags

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Match the following:

• commercial bank

• Better interest rates, lower fees, more personal customer service. Limited membership

• online banking

• Real buildings where you can get help face-to-face, friendly and local atmosphere.

• traditional bank

• Lots of branches and ATMs, full range of banking services.

• credit union

• Higher interest rates on savings, lower fees, no in person service

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Match the following:

• money market

• • Higher interest rates help your money grow; great for saving for goals. Limited number of withdrawals.

• checking/debit

• Higher interest rates compared to other accounts; fixed interest rates no matter change in economy. Penalty for early withdrawal.

• certificate of deposit

• • Higher interest rates;

  • Higher minimum balance requirements; limited transactions compared to checking accounts.

• savings

• • Easy access to your money; usually no limit on transactions.

  • Low or no interest, which means your money doesn't grow much.

Tags

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