21st Century Student FinLit -Getting Personal SW

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THE BATTLE OFTHE BANKS

C H A P T E R 2

Chapter Resources: Any large commercial bank such as US Bank, Citigroup, or PNC will have plenty of information about their products and services on their websites. Go to a retail bank’s website to explore and compare different types of savings accounts, rates, checking accounts and fees, and account management tools Need a good bank? Find a Better Bank (findabetterbank. com) has a collection of articles of interest to young earners and savers, including information about different types of accounts, bank charges, mobile banking, and debit cards. Learning Goals By the end of this chapter you will be able to: • Compare banks: retail, consumer, business, savings and loan • Compare a checking account, savings account, CD, and money market account • Make a plan with at least five strategies to avoid bank fees and penalties • Tell about two alternatives to traditional banking • Summarize the benefits and limitations of deposit insurance • (Opt.) Debate the pros and cons of virtual currency

PRODUCT PREVIEW

B anks and banking have been around a long time. In fact, there is evidence that banks existed as far back as ancient Mesopotamia. These days, it seems like there’s a bank on every corner! Banks are a part of our everyday lives, yet we rarely give these important institutions a second thought. One day, when you have a job and need a place to deposit your paycheck and tools to manage your money, you will have a very close personal relationship with a bank. Like any potential long term relationship, you should know what you’re getting into. Some banks are huge, with a presence in every state. Others are small and designed to serve the needs of the local community. Banks provide many financial services and products to a variety of clients with diverse needs. There are several different types of banks. As a financially literate person, you should know a bit about banks and the products they offer for saving and managing your money. Let’s learn!

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