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2.01BM Checking Accounts

Last updated 2 months ago
33 questions
Note from the author:
Intro/Warm-Up:

QUESTION OF THE DAY: What percent of teens have opened a bank account?

Answer the question on the first slide in the space below. Then, compare your answer to the answer on the second slide. Finally, follow your teacher’s directions on how to answer the follow-up questions on the last slide.
1
What percent of teens have opened a bank account?_______
Learn It

ARTICLE: 11 Types of Bank Services You Can Take Advantage Of

Think banks are just for stashing your cash? Think again! Banks offer a range of services that you can take advantage of. Read the article about the perks and services your bank may offer. Then, answer the question
3
List three general services that banks provide._______ _______ _______
1

Why might a bank's range of services be an important factor for someone choosing where to open an account?

VIDEO: How Banks Create Money

Banks do more than keep your money safe. They need to make money in order to continue operating. Watch the video to learn how banks use your money to make money and even create it out of nowhere! Then, answer the questions.
1

Why do banks pay interest on deposits?

1

Banks can't actually print new money, but they do increase the overall money supply in the economy. Describe how this happens.

INFOGRAPHIC: Traditional vs Online Banks

Online banks have emerged as an alternative to traditional banks that have physical locations. Use the infographic to compare the offerings of each type of bank. Then, answer the questions.

1

True or False: Traditional Banks typically offer higher interest rates on Savings Accounts.

4
Compare traditional and online banks by listing at least one pro and one con of each type of bank
Traditional Banks:
Pro:_______
Con:_______
Online Bank:
Pro:_______
Con:_______

VIDEO: What is the FDIC?

Regardless of which type of bank you use, confidence that your money will stay safe is a fundamental concern. The FDIC is a government agency that's like insurance for your bank deposits. Watch this video to learn how it's been protecting people's money for almost 100 years! Then, answer the questions.
1
What is the maximum amount of money the FDIC insures per person?_______
1
Carmine has $45,000 in a savings account and $225,000 in an IRA retirement account. How much of their deposits will they receive if the bank fails?_______

ACTIVITY: CREATE: Banks Ads

Now that we’ve seen the differences between bank types, let’s create an advertisement to promote the strengths of a chosen bank and the drawbacks of the other types. Follow the directions on the worksheet to complete this activity in the picture below

There are various types of banks that can serve your financial needs in unique ways. In this activity, you'll take on the role of an ad campaign designer who is working for one of the three different types of banking institutions: Traditional (Brick-and-Mortar) Banks, Online-Only Banks, and Credit Unions. You'll start by researching the characteristics of each type, examine the specific services they offer, and create a one-page ad that highlights the strengths of your bank and the weaknesses of the other types.

Part I: Research

  1. TEAMWORK: Form groups of 2 to 4 students. Your teacher will assign your group one of the three bank types. Use the links provided to research the pros and cons of each bank type and add the information to the table.
Articles
  • Credit Unions vs. Banks: Which One Is the Best for You?
  • Online banks vs. traditional banks vs. credit unions
Videos
  • Are credit unions better than big banks?
  • Online Banking vs Traditional Banking: Pros and Cons
Infographics
  • Banks vs Credit Unions
  • Internet Banks: Pros and Cons
Fill in the table with as much information as you can find that highlights the benefits of your type of bank and the drawbacks of one or both of the other types of banks.
Example: Terrance is assigned Traditional Banks and notes in row 1 that Traditional Banks offer physical locations for members to visit instead of relying on only online or phone help. He can fill in that as a benefit of Traditional Banks and a drawback of Online Only-Banks.
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Exit Ticket
1

Sarah is comparing two banks for their services. OceanView Bank offers digital banking and loans, while GreenField Bank provides wire transfers and traveler's checks. Sarah needs to send money to her family overseas every month. Which bank should she choose?
  1. OceanView because it offers digital banking
  2. OceanView because it offers loans
  3. GreenField because it offers wire transfers
  4. GreenField because it offers traveler’s checks

1

Which of the following best describes the primary way that banks make a profit?
  1. By charging customers for using ATMs that are outside of their network
  2. By lending out deposited money at higher interest rates than they pay on deposits
  3. Renting safe deposit boxes to clients
  4. Charging fees for issuing certified checks and money orders

1

What is a key difference between online banks and traditional banks?
  1. Online banks are not FDIC-insured
  2. Traditional banks do not offer digital banking services
  3. Online banks usually offer higher interest rates on savings accounts
  4. Traditional banks do not provide lending and credit services