Based on Wells Fargo’s Hands on Banking ®
Project Pro$per
presents
Basics of Banking Services
Institutions, Accounts, ATMs and Debit Cards
Participant Guide
The Hands on Banking® program is a free public service provided by Wells Fargo. You may also access the program anytime at
www.handsonbanking.org & www.elfuturoentusmanos.org
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Table of Contents
Financial Institutions ........................................................................................................................................... 3
The Basics............................................................................................................................................................ 3
Types of Financial Institutions .................................................................................................................... 3
Benefits of Using a Financial Institution ................................................................................................. 4
Most common types of bank accounts .......................................................................................................... 5
Savings Accounts ................................................................................................................................................... 7
The Basics............................................................................................................................................................ 7
Reasons to Save Money .................................................................................................................................. 7
How to Open a Savings Account ................................................................................................................. 8
Checking Accounts ................................................................................................................................................ 8
The Basics............................................................................................................................................................ 8
How to Open a Checking Account .............................................................................................................. 9
Checks ................................................................................................................................................................... 9
Check Writing Practice Activity-Partner Activity ............................................................................. 10
How to Endorse a Check ............................................................................................................................. 10
How to Use Your Transaction Register ................................................................................................. 11
Glossary ................................................................................................................................................................. 13
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Financial Institutions
The Basics
A. FINANCIAL INSTITUTIONS, including banks and credit unions, offer products and
services to help you manage your money.
B. Millions of Americans use financial institutions.
C. Financial Institutions come in all sizes and are in many locations, from a branch in a
grocery store to a larger bank in a big city downtown.
D. These institutions offer safe, secure, convenient services so you can save money and
build a better financial future.
Types of Financial Institutions:
There are two main types of financial institution that offer checking and savings accounts
and loans: Banks and credit unions.
Type of Financial
Institution
Banks
Credit Unions
Governed by Federal and State
regulations


Make loans, pay checks, accept
deposits, and provide other
financial services


Ownership
For profit business
owned by shareholders
and investors
Nonprofit business
owned by members
(customers)
Deposits insured by
FDIC
NCUA
List 5 Banks
List 5 Credit Unions
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Benefits of Using a Financial Institution
A. Safety
1. It’s risky to keep your money in cash.
o It could be lost, stolen, or destroyed.
2. Financial institutions keep your money safe.
B. Convenience
1. There's no need to carry large amounts of cash.
2. If you need cash, you can easily access your funds virtually almost anywhere.
C. Security
1. All U.S. banks and credit unions have to follow federal and state laws and
regulations.
2. Most banks and credit unions are insured by the Federal Deposit Insurance
Corporation (FDIC) or National Credit Union Administration (NCUA) up to
$250,000.
D. Save Money
1. No need to use check cashing stores that charge high fees.
2. Using a bank or credit union will help you save.
E. Financial Future
1. You'll have access to financial professionals to help you.
2. Knowledgeable advice of bankers is a valuable resource to help you build a
better financial future.
3. Financial Institutions should display the above logos throughout the bank.
When in doubt ask the customer service representative.
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Most common types of bank accounts
The most common types of bank accounts are Savings Accounts and Checking Accounts.
How to Open a Savings or Checking Account
A. Ask your bank which forms of identification they accept, for example:
•
Driver’s license or state ID
•
Passport
•
U.S. military ID
•
Alien Registration card
•
Matricula Consular card
B. Gather your personal identification.
•
Two forms of current photo identification are usually required.
•
Have your minimum deposit ready to be deposited if required.
Deposit and Withdraw Money from your Accounts
A. Once your checking or savings account is open, you’ll probably have lots of options
for how to make deposits and withdrawals. If you have more than one account with
the same financial institution, be sure to ask them about convenient ways to
transfer funds between your accounts.
B. There are websites that allow you to purchase and receive money online without
involving a bank. The most popular websites are Paypal.com, Amazon.com, and
Venmo. These websites act as a digital wallet for consumers and business owners.
Method
Definition
Deposit Withdrawal
You can physically go to your
bank or credit union and deposit
or withdraw money with a bank
teller.
Most employers and government
agencies will automatically
deposit your paycheck and/or
benefits into your accounts.
Yes
Yes
Yes
No
Electronic Funds When your money is transferred
electronically by computer from
Transfer (EFT)
Yes
Yes
In Person
Direct Deposits
one account to another account.
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Automatic
Clearing House
(ACH)
When funds are transferred
electronically by computer from
one financial institution to
another. Most Direct Deposits
will be labeled ACH deposits.
These are machines found at
banks/credit unions and
throughout your community that
allow you to withdraw and
Automatic Teller deposit money and transfer
Machines (ATM) funds between accounts with an
ATM/debit card and secret
number called a PIN (Personal
Identification Number).
Online Banking
International
Remittance
Allows you to pay your bills
through your bank account by
scheduling the dates you want to
send your payment. Also allows
you to transfer funds between
your accounts.
1. Also called global remittance, is a
type of EFT that allows you to
quickly and easily transfer funds
to family members who live
outside of the United States from
your account.
Yes
No
Yes
Yes
No
Yes
Yes
Yes
When you visit a bank or other financial institution, follow these tips and techniques:
1. If you don’t know who to talk to, just ask.
2. Don’t sign anything you don’t understand.
3. Ask questions until you have the answers you need.
4. If you need to speak to someone in your native language, always ask!
4. Ask for written information to take home and review.
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Savings Accounts
The Basics
1. Savings accounts allow you to DEPOSIT, WITHDRAW, and EARN INTEREST on
your money.
2. Use a savings account to put money aside for a future goal or emergency fund.
3. Savings accounts EARN INTEREST—a small amount of extra money the bank
gives you for opening the account.
4. There are many different kinds of savings accounts (regular savings, money
market accounts and Certificates of Deposit (CDs).
5. Some savings accounts (money market and CD’s) may pay higher interest rates
but limit how often you can take your money out.
6. Consider having more than one savings account for different purposes.
Reasons to Save Money
1
2
3
4
5
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Types of Savings Accounts
A. Regular Savings Account
1. Allows deposits and withdrawals
2. May require a minimum balance to keep account open
3. May limit the number of times you can withdraw money
4. Money earns interest (every month or quarterly, four times a year)
B. Certificate of Deposit (CD)
1. Requires that money stay in an account for a fixed period of time, called a TERM
(from a few months to five or more)
2. If money is withdrawn before the end of the term, PENALTIES could be applied.
3. Interest earned is generally higher than regular savings accounts.
Checking Accounts
The Basics
A. A checking account is a great tool for managing your money day-to-day
B. A checking account also allows you to make a deposit and make a withdrawal
however you do NOT earn interest on a checking account.
C. A checking account allows you to pay for things in other ways than using cash – like
writing checks or using a debit card.
D. Writing checks and using a debit card are safe and convenient ways to pay for things
from your checking account.
E. With a checking account, you can get cash whenever you need it, and deposit checks
that others give you.
F. Different institutions offer a variety of checking accounts with different features,
benefits and fees. Ask customer service for details to find the account that’s right for
you Some questions you might ask are:
• Does the account require me to maintain a minimum balance? What happens
if my balance falls below the required minimum?
 What fees will I be charged, and how often?
• Where are the ATM locations and is there a fee to use my bank’s ATM or
other banks’ ATMs?
• Can I access my account online?
• Does the bank offer services to help me send funds to my family in another
country?
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Checks
A. What is a Check?
o Checks are paper forms that people use to transfer money from one place to
another.
o A check is a written order that instructs a bank to pay a specific amount of
money from a specific checking account to a specific person or entity, for
example, a store.
B. How do you get checks?
o Your financial institution will normally provide you with starter checks when
you open a checking account. However, you can purchase checks online, and
through shopping catalogs. You can order more checks when you need them,
usually for a fee.
C. Why use checks?
o Checks are a safe and convenient way to pay for things. If you have checks, you don’t
have to carry large amounts of cash around with you.
o Each time you write a check, you have a record of how much you spent, and where,
which will help you to keep track of your spending habits.
A. Your name and address go here. These are preprinted on the check for your convenience and tell
the person or company to whom you’re giving the check – known as the payee – that you’re the one
who wrote it.
B. Write in today's date.
C. This is where you write the name of the person or company who will be receiving the money. If
you’re making a withdrawal for yourself, write “Cash” here.
D. The amount of the check is written here.
E. The amount in words is written on this line. You start at the left edge of the line and when you’re
finished, you will draw a line through the remaining empty space as far as the word “Dollars.”
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F. The name of the bank that holds your account appears here.
G. To remember what you bought, you can write a brief description here.
H. Your signature should be the last thing you complete. It gives the bank permission, or
authorization, to release the money to the payee.
I. This is the check number. This reference number will help you keep track of your payments by
check. Each time you write a check, you should record the check number, date, payee, and amount
in your check register, and calculate your new balance.
J. This is the 10-digit account number that is unique to your account. This tells the bank which
account the money comes from.
K. This is the bank routing number. It identifies the bank that issued the check. You need this
number to set up direct deposit at work. Direct deposit allows your employer to electronically
deposit your paycheck directly into your account, without giving you a paper check.
RECAP Why Have a Checking Account?
• Keeps your money safe
• Easy to make deposits and get cash
• Convenient way to pay bills and make purchases
• Helps you track spending
• Avoid high cost check-cashing stores
Check Writing Practice Activity-Partner Activity
Instructions: Fill out the sample check below using this information:
 Payee: International
Plaza Apartments
 Date: Today’s Date
 Amount: $1095
 Memo: Rent
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How to Endorse a Check
A. When you deposit a check, you need to let the bank know that you have personally
approved the transaction by endorsing the check.
B. On the back of the check near the top, you’ll sign your name, and write the number
of the account to which you want the check deposited.
What is an overdraft?
Overdrafts occur when you write a check, or withdraw more money than you
have in your account.
A. Insufficient Funds
1. Not having enough money in the checking account to cover
the check written.
2. Bounced Check- common term for insufficient funds
 Can be a very expensive mistake
o Overdraft Fee (Your financial institution)
o Returned check fees (business)
 Too many overdrafts can lead to federal prosecution
 If you make too many overdrafts the bank may close
your account and you may find it hard to open an
account at another bank. Should we add something
here about how that reflects in their credit?
3. Keep a log of every TRANSACTION in order to avoid
overdrafts.
Each time you deposit, withdraw, or transfer money
in or out of your account, it’s called making a
TRANSACTION.
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How to Use Your Transaction Register
Here is a sample transaction register:
A. This column is used to calculate the current balance in the account by adding each
deposit and subtracting each withdrawal.
B. This is the number of the check.
C. This column is used to record the date the check was written or the transaction was.
D. This is the name of the payee, that is the person or company who was paid.
E. Once a month, you’ll use this column to mark each transaction that appears on your
monthly account statement. This will help you to ensure that your records and the
bank’s records match.
F. This is the amount of the check or transaction
G. Use this line to briefly describe the transaction. This can be a helpful reminder of
what you purchased or why you received funds.
H. This is the amount of your deposit.
Key Points:
• To record a check you’ve written fill in the check number, date, and payee and, on the line
below, what the payment is for, like rent or clothing. Then subtract the amount of the
check from your current balance. If you used your debit card or made an ATM withdrawal,
follow the same steps but without a check number.
• Now enter a check deposit. Fill in the date and the amount of the deposit, the name of the
person or business that wrote the check, and, on the line below, what it was for. Then add
the check amount to your balance. To record a direct deposit of a paycheck, just enter the
date of the direct deposit, and the amount, and add it to your balance.
Is it worth it to add something here about online resources that help with this. So few
people do this by hand any more I think we want to be realistic about how people can
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manage this part of their money in a way that makes sense. Maybe shorten this and briefly
talk about the register and then have more online ways to monitor your balance.
Don’t forget to record all of your transactions,
not just checks. Be sure to include:
• Deposits
• Electronic funds transfers
• ATM withdrawals
• Interest payments
• Debit card purchases
• Bank fees
What is Overdraft Protection?
Overdraft Protection is a checking account service that most financial institutions offer
their customers or members. This feature provides you a line of credit to write checks for
more than the actual account balance. Instead of getting charged bounced check fees,
overdraft protection will in effect provide the account holder with an instant loan. The fees
and interest charged for overdraft protection are typically much less than bounced check
fees. Talk to your bank about the type of overdraft protection they offer and see if it is a
good fit for you.
Additionally, often times, if you have a savings account with the same institution, they will,
with your permission, automatically transfer the money out of your savings into your
checking account to cover the cost of the purchase/payment if you are overdrawn.
For more information about our small
No-interest loan program for immigrants and refugees you can
reach us at:
www.projectprosper.org
Facebook.com/projectprosper
Join Our Facebook Group: Project Prosper: Money Talks
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Glossary
Account
A banking service allowing a customer's money to be handled and tracked. Common bank
accounts are savings and checking accounts.
Automated Teller Machine (ATM)
A specialized computer used by bank customers to manage their money, for example, to get
cash, make deposits, or transfer money between accounts.
Available balance
The amount of money in your account that you can use or withdraw. The balance shown by
the bank may not reflect all deposits and withdrawals you have made, if they have not
processed your transaction.
Bad or bounced check
A check that is not paid by a bank because the customer's account does not have enough
money to pay it. Also known as a bounced or returned check. Banks will charge you service
fees for each bad check, and writing bad checks can seriously harm your credit rating.
Balance
The exact amount of money contained in a deposit account according to the bank. This
figure may be different than the amount shown in your own records because of checks you
have written or deposits you have made that have not yet been processed by the financial
institution.
Bank
A financial institution that handles money, including keeping it for saving or commercial
purposes, and exchanging, investing, and supplying it for loans.
Check
A written order instructing the bank to pay a specific amount of money to a specific person
or entity. The check must contain a date, payee (person, company, or organization to be
paid), amount, and an authorized signature.
Checking account
A bank account that allows a customer to deposit and withdraw money and write checks.
Using a checking account can be safer and more convenient than handling cash.
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Clear
When the banks pays a check you have written and then subtracts the amount from your
account, your check has "cleared" the bank.
Credit Union
A non-profit financial institution that is owned by its members. Credit unions provide
financial services for their members, including savings and lending. Large organizations
may organize credit unions for their members, and some companies establish credit unions
for their employees. To join a credit union, a person must ordinarily belong to a
participating organization, such as a college alumni association or labor union. When a
person deposits money in a credit union, he or she becomes a member of the credit union
because the deposit is considered partial ownership in the credit union.
Debit card
A special card issued by a bank that looks like and is treated like a credit card; however,
when used, the amount of the purchase or cash advance is subtracted from the user's
deposit account rather than drawing on available credit.
Deposit
To put money into your account.
Direct Deposit
A deposit made directly into your account by the payer without the use of a check or
deposit slip. Typical direct deposits include Social Security payments and automatic payroll
deposits.
Electronic Funds Transfer (EFT)
Allows you to have funds electronically transferred into your account(s) such as deposit of
your payroll check, tax refund or social security check or out of your account(s) such as
automatic payment of loans, phone bills or other bills
Endorse
To sign the back of a check, authorizing the check to be cashed, deposited to the payee’s
account or paid to another person.
Federal Deposit Insurance Corporation (FDIC)
An independent agency of the United States government that protects customers from the
loss of their deposits if an FDIC insured financial institution fails. The basic insurance
amount is $250,000 per depositor per insured financial institution.
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Financial institution
Companies such as banks, credit unions, and savings institutions that provide a wide range
of money management products and services, such as checking and savings accounts, loans
and credit cards, to consumers.
Global remittance
A form of Electronic Funds Transfer which allows you to send money to families and
friends outside of the United States from your accounts.
Interest
The amount of money paid by a bank to a depositor or by a borrower to a lender in
exchange for the use of money for a certain period of time. For example, you may earn
interest from a bank on amounts you have deposited in a savings account and you pay
interest to a lender if you have a loan.
Line of credit
An arrangement by which a lender extends a specific amount of credit to a borrower for a
certain time period. As long as the borrower repays the principal with interest, he or she
can continue to borrow against the line of credit during the agreed upon time period. A line
of credit can be unsecured or secured. Also called a credit line. A credit card is one type of a
line of credit.
Mobile Banking
Allows individuals to access their financial accounts through a web browser on their
mobile device such as cellular phone.
Money order
A document issued by a post office, bank, or convenience store ordering payment of a
specific sum of money to an individual or business. There is generally a small charge for
purchasing a money order.
National Credit Union Administration (NCUA)
An independent federal agency that charters and supervises federal credit unions and
insures savings in federal and most state-chartered credit unions for up to $250,000 per
depositor per credit union.
Overdraft Protection
A checking account feature in which a person has a line of credit to write checks for more
than the actual account balance. Instead of getting charged about $35 for bouncing a check,
overdraft protection will in effect provide the account holder with an instant loan.
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Payee
The person, company, or organization to whom a check is written: a person or company
who is to receive money.
Personal Identification Number (PIN)
A secret combination of letters or numbers you use to gain access to your account through
an electronic device such as an ATM
Returned item
This is also known as “non-sufficient funds” or a “bounced check.” If you spend more
money than you have in your checking account, the bank may return the transaction
unpaid and charge a fee. A “returned item” may also be a check that you deposited to your
account that is returned due to insufficient funds in the payer’s account.
Savings account
A bank account that allows a customer to deposit and withdraw money and earn interest
on the balance.
Savings Institution
A financial Institution that accepts deposits from individuals, makes homes mortgage loans,
and pay dividends.
Statement
A monthly accounting document sent to you by your bank that lists your account balance at
the beginning and end of the month, and all of the checks you wrote that your bank has
processed during the month. Your statement also lists other deposits, deductions, and fees,
such as service charges.
Term
A period of time over which a loan is scheduled to be repaid. For example, a home
mortgage may have a 30-year term, meaning it must be repaid within 30 years.
Transaction
An agreement between a buyer and seller to exchange an asset for payment. In accounting,
a transaction is any event recorded in the written financial records, also called the
accounting books.
Withdrawal
To take money out of an account.
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Banking Basics
Post Course Survey
Please answer the following questions. When finished remove this paper and
hand it to our instructor. Thank you for attending our class!
1. What is a Financial Institution?
College/University
Amscot
Bank/Credit Union
I don’t know
2. How is your money protected in financial institutions?
Liability Insurance
FDIC/NCUA
It's not protected
I don't Know
School Name______________________________________________________________