Banking Services 101

The basics of comparing and evaluating various banking services, including checking and savings accounts, ATM/check cashing cards, and online banking, starting with the introduction of the debit card and ATM card.

Objectives:

Understand the services offered by banks, savings and loans, and credit unions
List some of the factors to consider when shopping for bank services
Understand the responsibilities of having a checking account
Write checks and keep a running balance in a checkbook
Describe how to deposit a check
Read and interpret a checking account statement
Reconcile a checking account using a checking account statement and a check register
Describe what an ATM card is and explain how it is used
Describe what a debit card is and explain how it is used

Tip:

While many students understand that there are a variety of banking institutions that provide a wide range of financial services, most do not know how to choose and use these services wisely. Students should be cautioned to avoid high cost financial service providers such as check-cashing services, pawn shops, rent-to-own services and the like. Students should be educated about important factors to weigh when opening banking accounts, such as monthly fees, minimum balances, cost of checks, and other fees that banks may charge. It is important for the student to have a full understanding of the value of the services provided by financial institutions and the fees associated with them.

A Primer on Debit or ATM Cards

The following information will help introduce banking, specifically debit cards.

What is a debit card?
A debit card is a payment card linked directly to an individual's checking account. The debit card is issued by a bank to allow an individual to access her funds, whether by withdrawals of cash from an automated teller machine (ATM) or making purchases at merchant locations.
What is an example of a debit card?
One type of debit card is a financial institution's ATM card with point-of-sale features that incorporates a specific acceptance mark or logo; some examples include: Visa®, PLUS®, CIRRUS® or MasterCard®). Payment is completed by signing a sales draft or by entering a PIN, a personal identification number, also known as a secret code. The funds are then deducted from the card holder's checking account.
What does a debit card do?
A debit card allows the cardholder to make purchases without having to write checks or withdraw cash.
Where are check cards accepted?
Check cards can be used at merchant locations wherever the card logo is displayed.
What does it cost?
Banks determine the fees for each card and/or transaction.
How does one keep track of his or her check card transactions?
Card holders receive receipts at each ATM or merchant location. They typically record debit card purchases in their checkbook registers.