Types of Bank Accounts

• Financial institutions such as banks and credit unions offer many different types of accounts, which are places to hold money.

• People have different financial situations, which means that they earn, spend and save money differently.

• Different types of accounts are made for different financial situations.

Transactions

• Most banking transactions can be done using a debit card at an automated banking machine (ABM or ATM), by banking over the phone, by using the internet on a phone, or by seeing a teller in person.

Savings Accounts

• Accounts where money is deposited and interest is paid by the financial institution on the account.

• Some offer a higher interest rate for higher account balances.

Transactions

• Many financial institutions charge a monthly fee for different services and transactions offered with the account.

• Routine transactions include depositing and withdrawing money and the use of ATMs.

• Banks offer a certain number of free transactions per month and that number changes depending of the account.

Chequing Accounts

• Accounts that allow you to write cheques or use debit on the account balance.

• Some chequing accounts pay interest but many do not.

• Typically pay less interest than savings accounts.

• Writing cheques is a routine transaction and you are allowed to write a certain amount for free each month.

• Many businesses do not accept personal cheques.

Overdraft

• If you have Overdraft protection, the bank will still cash cheques that you have written, even if you do not have enough money in the bank to cover them.

• They charge interest on the overdraft.

• If you do not have overdraft protection and you do not have enough money in your account, the bank will charge a NSF (non-sufficient funds) fee.

How to write a cheque

Homework

Warm-up Page 104 #1-6

Page 105-108 #2-7

Page 109 Skills Practice #1-3