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Banks versus Credit Unions Banks More fees Higher fees for bounced checks, ATMs, etc. More branches/ATMs available More savings plans/loan programs Higher minimum balances required Low interest rates on savings/higher interest rates on loans Very structured, more procedures/rules Credit Unions Fewer fees Lower fees for bounced checks, ATMs, etc. Usually one location or one region Fewer savings plans/loan programs Low or no minimum balance required Higher interest rates on savings/lower interest rates on loans Loose structure, fewer procedures/rules
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Investing and BankingFONTBONNE UNIVERSITY FINANCIAL LITERACY AND DEFAULT PREVENTION
FACILITATED BY JAMES “VINNY” VINCENTASSOCIATE DIRECTOR, FINANCIAL LITERACY LIAISON
Savings versus Investing
Saving: used to accomplish short-term/mid-term goals (vacations, holidays, emergencies, etc.) Checking Accounts Savings Accounts Money Market Accounts Certificates of Deposit (CDs) Bonds
Investing: used to accomplish long-term activity (retirement, college, etc.) Impact of Inflation: invest in areas which will maximize your return to combat against inflation (+3-4% per
year) Risk and Return Relationship: the higher the return, generally the higher the risk; can you afford a setback? Impact of Long-term Investing: the longer you let your money sit, the greater the return you require Simple Investment Options are Best: mutual funds, index funds, employer plans, guaranteed funds, IRAs
Banks versus Credit Unions
BanksMore
fees
Higher fees for bounced checks, ATMs, etc.
More branches/ATMs availabl
e
More savings plans/lo
an program
s
Higher minimu
m balances required
Low interest rates on
savings/higher interest
rates on loans
Very structured, more procedures/rules
Credit Unions
Fewer
fees
Lower fees for bounced checks, ATMs, etc.
Usually one
location or one region
Fewer savings plans/lo
an program
s
Low or no
minimum
balance required
Higher interest rates on
savings/lower interest rates on
loans
Loose structure, fewer procedures/rules
Tips for Banking
Utilize Direct Deposit
• Many banks waive account fees if your paycheck is direct deposited into your account
• Convenience of avoiding bank lines
Average Daily Balance
• Some banks charge a fees if your balance falls below a certain amount
Basic Checking
• Pays no interest but requires no minimum balance
• May limit number of checks or ATM withdrawals
Avoid ATM Fees
• Out-of-network ATMs may charge a fee on top of your bank’s fee
• Some banks charge a fee for using your card as a debit at the grocery store!
Wise Tips of the Trade
Have the “Customer” mentality• The banks are
fortunate that you chose them to house your money
• Fight for what is fair
Banking is a privilege• Be responsible with
your money• Avoids overdrafts
• Will accrue a fee for each transaction
Debit Cards• Using your own
money, not borrowing money
• Usually requires a PIN• Money is immediately
deducted
Cashing A Check• Banks will often hold
them a certain number of days
• Money is not always available immediately
Seminar Activity
For this activity, you will need to visit a bank. Step 1: Ask a staff member for information regarding their bank policies and
procedures with regards to their checking and savings account programs. Step 2: Ask a staff member for information regarding any investment
programs the bank may offer to customers. Step 3: Ask for a business card of the staff member who assisted you.
Questions?
Contact James “Vinny” Vincent [email protected] 314.719.4353
Office Hours: Monday thru Friday (8:30am-4:30pm)
Lunch taken daily from 12:30pm – 1:30pm
