Name_________________________
Project
Date:
Eco: Personal Finance
1. Go to one of the following sites, or choose your own bank and answer the
questions below. Be sure the bank you choose has local branches.
www.bankofamerica.com
bank.com
www.chase.com
www.washingtonmutual.com
ny.com (take individual link)
www.astoriafederal.com
www.greenpoint.com
orkbank.com
http://us.hsbc.com
www.citi
www.bankof
www.northf
www.nefcu.com (Credit Union)
I. Bank: _________________________________________
1. What types of products and services do banks offer to individuals
(personal)? Check all that apply
Products and Services
ATM reimbursements for fees charged by other banks for using their ATM’s
Automatic Savings Plan (Christmas, Vacation Club etc.)
Online Bill Payment
Summaries of your online accounts/ Online Bank Statements
Online Fraud Protection
Automatic Deductions for Bank Loans
Overdraft protection
Send & receive money online
Bank by phone
Services in Spanish (or other languages)
Investment Services (stocks, bonds, mutual funds)
Financial Planning Services: you'll meet with a representative to discuss
your financial status. Then work together to design a strategy to help you
reach your goals, save money, and manage debt
o Direct Deposit: your payroll, government, pension or dividend funds are
automatically deposited into your account and are available immediately.
o
o
o
o
o
o
o
o
o
o
o
o
o E-Mail and Wireless Banking alerts notify you if you are overdrawn, have
bills due, etc.
o Financial Centers: Face to face services at a bank!
o Free access to research from Salomon Smith Barney or other investment
brokerage.
o Wire money
o ATM Card
o ATM/Debit Card
o Basic Checking: No balance required
o Certificates of Deposit (CD’s)
o Revolving line of credit1 that provides overdraft protection
o Life Insurance/Long Term Care Insurance
o Credit Cards
o Money Market
o Loans
o Checking accounts
o  Others_____________________ __________________________
______________
Let’s Shop Around!
A. Assume that you are going to open a savings account and you have $300 to
deposit. Compare 3 banks and find the best match for you.
Bank
Interest Rate
Fees
Extras such as
ATM or Debit card,
Online banking, etc.
1. Which bank will you choose? Why?
B. Since you will be going to college or getting a full time job in September, you’ll
need a checking account. Which bank, near your home or college, best suits your
needs? Compare 3 banks below. Be sure to include the bank with the best Savings
account for you.
Bank
# of free checks per
month
Debit card fees
Monthly Fee or
Minimum balance to
avoid it
Per debit fees at nonbank ATM’s
Per check fee
Overdraft protection?
(Yes: Conditions /No)
2. Which bank will you choose? Why?
C. You received $3,000 in graduation presents and want to invest your money.
Compare CD’s and Money Market Accounts below. Since there may be fees
associated with your investment be sure to use the Annual Percentage Rate
(APR) rather than the Interest Rate.
Interest Rate: Interest paid per year and expressed as a percentage
APR stands for annual percentage rate and reflects the interest rate charge on the
loan plus other finance charges including, for example, private mortgage insurance
premiums, points and other financing costs you pay when obtaining the loan.
CD’s offer dual benefits of high interest rates and the security of FDIC
insurance
But early withdrawal penalties
*******Use www.bankrate.com and take the link to CD’s/Savings, choose by
State, NY and then Long Island. Use the CD Interest Rate calculator at
www.bankrate.com to compute the value of your investment at
maturity.*******
Bank
APR Value at Term
1 year APR
5 year APR
10 year APR
Early withdrawal
penalty (Y:
APR Value at Term
APR Value at Term
conditions/N)
Money Market Accounts. These are government-insured accounts that allow you
access to the money you have deposited. (Liquid) Withdrawals are limited to six
monthly, three of which may be by check. These accounts earn interest with the
rate varying widely. Banks that are trying to attract deposits often offer MMAs
with higher yields. Yield also vary on the amount deposited: The more you deposit,
the more you earn. Money market funds are a type of mutual fund. Each share is
worth $1. That value never changes. That value never changes. But the return on
the investment does fluctuate. Earnings are paid as dividends to shareholders.
Although the deposits made in these funds by shareholders are not insured by the
government, money market funds are a relatively secure investment. Under
government regulations, these funds must go into high quality short-term
investments. Investors also can write checks against the balance invested in these
funds.
www.bankrate.com
Bank/Fund
APR
Fees or Minimums
FDIC Insured?
3. Which sound like the best savings vehicle for you? Why?
D. It’s time to get some loans to pay for college, a new car, or that house you
want to buy. Take the calculator link and select
Automobile www.bankrate.com
Assume you are buying a $18,000 car.
1. Use the search engine to Choose a Product. Select Auto. Then Select NYS
and Long Island. Choose 1 bank and compare the information for the loans
described below.
2. A word about fees. If there is No fee then it is stated. Fees may be a small
percentage such as .25%, which is $45 for an $18,000 loan.
Bank
Term
36 Month
New Auto
36 Month
48 Month
60 Month
Used Auto
New Auto
New Auto
Rate
Fees or
Conditions
Other Perks
2. Choose 2 products from your chart above. Compute the amount you will have
to pay for your car loan each month and the amount of interest you will pay over
the 5-year term.www.bankrate.com
Bank
Rate
Monthly payment
Total Paid over
term
Total paid in
interest (Total
Paid – Car Price)
1. Which situation will provide you with the lowest monthly payments?
2. Which situation will cost you the most in credit (total interest paid)?
3. Which is best for you? Why?
E. So you want credit? Compare Credit Card rates below.
www.bankrate.com. Investigate Credit Card Rates by using the search engine
to search for Credit Cards. Then find the information in the Latest Rates
box:
1. Complete the chart below comparing average credit card rates in the U.S.
Type
Standard
Gold
Rate (APR)
2.
3.
4.
5.
6.
Why would you choose 1 type of card over another?
Would you qualify for all types?
Take the Link to "How’s Your Credit." Complete the test.
What is your credit rating? ______________
Use the Credit Card Calculator and compute the cost of charging $2000
on your credit card to pay for the new couch and television set you need in
your apartment. Calculate the cost of paying only the minimum and cost of
paying a higher amount. You may not pay off your full balance or pay
more than $150 per month.
Platinum
Minimum payment
Charge
$1500
Rate (APR)
(set by calculator
based on loan
amount)
13%
Other payment
(any amount ove
minimum)
$75 or __________
# of months to repay
Total cost of credit
(above original charge)
7.
8. What is the best payment plan when using a credit card?
9. Take the link to "How do I find a better credit card?" And then to "Find
the card that fits your lifestyle." Take the link to "Student Cards."
Company/Bank
Card Class
Annual Fee
Variable or Fixed Rate
APR
Late Fee
Grace Period
Over the limit Fee
Cash Advance APR
Cash Advance Fee
10.
11.
Which is the Best Card for you? Why?
Glossary
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Card Class: Classic, Platinum
Annual fee: Yearly fee to use the card)
V= Variable Rate: The rate will change throughout the year
F= Fixed Rate: Interest rate will remain the same
APR: rate of interest that includes fees and costs paid to acquire the loan.
Late fee: Fee charged if payment is not received on time
Over the limit fee: Fee charged if you spend more than your credit
limit allows
Grace period : The standard grace period is usually between 20-30
days. If there is no grace period, finance charges will accrue the
moment a purchase is made with the credit card.
APR for cash advance: rate of interest including fees when you use
credit cards to withdraw cash
Fee for cash advance: A charge by the bank for using credit cards to
obtain cash. It can be a flat (set) fee or a percentage of the amount of the
cash advance.

**Some cards charge a fee for transferring a balance (the money
you owe) from one card to another.