Banks Credit Unions Savings Loans by alicejenny

VIEWS: 3 PAGES: 17

									Banks, Credit
  Unions,
 Savings &
   Loans
       Vocabulary
• Transactional Account - A deposit
  account at a financial institution
  which allows its users to access the
  account quickly, safely and
  frequently through a variety of
  methods.
• Savings Account - An account which
  cannot be used as frequently and
  on-demand as transactional
  accounts. Typically, these accounts
  earn interest as a result.
      Vocabulary
• Money-Market Account - Savings
  account which draws interest based
  on current money market interest
  rates
• Certificate of Deposit - Money
  deposit at a banking institution
  which is loaned to the institution for
  a certain time with a certain rate.
  At the end of the term, the CoD can
  be withdrawn and the money plus
  interest will be paid.
       Vocabulary the
• Secured Loan - a loan in which
  borrower pledges an asset as
  collateral for the loan
• Collateral - An asset which is
  promised to a lending institution
  should the borrower default on a
  debt. If a borrower defaults, the
  asset will become a possession of
  the lender to be sold to recoup
  costs.
       Vocabulary
• Unsecured Loan - Not secured
  again the borrowers assets.
 • Overdrafts
 • Credit Card Debt
 • Personal Loans
Commercial Banks
• Financial Institution that lends
  money and provides transactional,
  savings, and money market
  accounts, and also accepts
  Certificates of Deposits
Commercial Banks
• Engage in:
 • Issuing checks
 • Safety deposit boxes
 • Lending money
 • Cash Management
     Credit Unions
• Provide transactional, savings, and
  money market accounts
• Issue checks and credit cards
• Offer loans
               Unions
     Creditcan deposit or
• Only members
  borrow money from a CU
• Not-for-profit
 • Not to be confused with Non-
   profit
• Owned by members
 • Members own accounts
 • Typically, one-vote-one-man
   Savings & Loan

• Specialize in savings accounts
• Specialize in loans
 • Mostly mortgages
  Savings & Loans

• Also mutually owned
• Borrowers and Depositors are
  members with full voting rights
Comparing/Contrast
       ing
 Banks vs. Others
• Banks - just like any other business.
  Controlled by a hierarchy and owned
  by stockholders.
• Credit Unions - Owned and
  controlled by account holders
• Savings & Loan - Owned and
  controlled by account holders
• Banks are for-profit
 • They make vs. Others
  Banks money off of interest
   on loans
 • Fees
• CU and S&Ls are owned and
 operated by and for the people who
 use them
 • Many times are community
   oriented
 • Profit is good, but not the primary
   goal
       CU vs. S&L
• Credit Unions for the most part, do
  the same as banks.
• Savings and Loans typically do not
  handle transactional accounts,
  checking, or credit cards.
      CU vs. S&L
• Credit Unions typically have
  requirements to starts accounts
 • Work for a certain company
 • Having direct relatives already
   with the credit union
• Savings and Loans are based upon
  whether or not an individual has
  good credit and the ability to repay
  loans
Videos (There is a
             bias)
• http://www.youtube.com/watch?v=ca
 wzTSVTP2M
• http://www.youtube.com/watch?v=-
 rEW6ff3Zao
• http://www.youtube.com/watch?v=R
 kQUVs-Kghg
• http://www.youtube.com/watch?v=r5
 ND2YasEUI

								
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