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.
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
Why might a bank's range of services be an important factor for someone choosing where to open an account?
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.
Why do banks pay interest on deposits?
Banks can't actually print new money, but they do increase the overall money supply in the economy. Describe how this happens.
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.
True or False: Traditional Banks typically offer higher interest rates on Savings Accounts.
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.
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
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
Videos
Infographics
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.
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?
OceanView because it offers digital banking
OceanView because it offers loans
GreenField because it offers wire transfers
GreenField because it offers traveler’s checks
Which of the following best describes the primary way that banks make a profit?
By charging customers for using ATMs that are outside of their network
By lending out deposited money at higher interest rates than they pay on deposits
Renting safe deposit boxes to clients
Charging fees for issuing certified checks and money orders
What is a key difference between online banks and traditional banks?
Online banks are not FDIC-insured
Traditional banks do not offer digital banking services
Online banks usually offer higher interest rates on savings accounts
Traditional banks do not provide lending and credit services
