Professional Documents
Culture Documents
institutions?
Go-betweens between
savers and borrowers
savers
$
bank
$
borrowers
Commercial Banks
+ Most services, convenience
-- Lowest interest rates, highest fees and loan rates
Internet banks
+ Often higher interest rates, lower fees
-- Fewer services, no ATMs
Check-cashing outlets
-- AVOID charge high fees (sometimes 2 or 3 percent)
just to have a paycheck or government check cashed.
___________________
availability of ATMs?
branch offices nearby? many?
hours of operation?
__________________
____________________
special features
minimum balance?
deposit insurance?
holding period for deposited checks?
direct deposit?
automatic payments?
overdraft protection?
online banking?
discounts or free checking for
students, seniors, or employees of
certain companies?
other charges
overdraft charge?
stop-payment fees?
certified check fees?
Account
____________________
Account
Earn interest.
Pay no fees if you maintain a minimum balance.
May offer check-writing services.
Savings insured by the FDIC up to $250,000.
_______________________________
(CD)
Earn interest during the term (three months, six months, etc.).
Receive the principal and interest at the end of the term.
Savings insured by the FDIC up to $250,000.
Must leave the deposit in the account for the entire term to avoid an early
withdrawal penalty.