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                      Hi I'm Abbie,
                      your financial 
                      education tutor.

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Banking Tutorial

This Tutorial will offer you very crucial banking information. I suggest you read it over and over again if you are dealing with banks or if you are considering dealing with one.  Banks can really cause you financial ruin if you’re not careful.  So if you want to keep more of your money while using banks take this tutorial.

Let"s start the Bank Tutorial

Step 1:  Learn banking basics

What Is A Bank?

A bank is a financial institution that is either 
chartered by the state it operates in or by the 
federal government.

More Things about these financial institution

  • They are not non-profits
  • They are for profit businesses
  • Banks are not government agencies
  • They are chartered and regulated by the state 
        they do business in or by federal government
  • They need depositors and borrowers to thrive
  • Banks need to lend money to continue to grow
  • They offer all kinds of financial services.  Some offer more services than others
  • Banks are often classified as banking institutions and financial institutions
  • They are not the same as a credit union
  • They are not the same as a thrift.
  • Some have insurance with the FDIC, therefore insuring your deposits up to a certain amount.  At the time of this writing the amount insured is up to $250,000 per bank and not per banking account. However you might want to ask your bank to be sure of this.

Banking Information

Consider These Facts About Banks Before You Decide To Open An Account

  • Opening a bank account is not always a wise financial move   
  • For those who are not properly informed, it can have a very negative effect on your money
  • There are advantages of having a bank account
  • There are disadvantages of having a bank account
  • Not all offer the same services
  • Not all offer the same financial products
  • They do not charge the same fees
  • Some might not be insured by the FDIC.  So your deposits may not be safe from losses.

Advantages and Disadvantages of Having a Bank Account

As with any other thing in the world there are some pros and cons of having a bank account.  Below is a list of the advantages and disadvantages of dealing with banks.

Advantages of having a bank account

  • You have a place to cash your check without paying check cashing fees
  • You have a safe place to put all your money
  • You can have both a checking account and a savings account at the same time
  • You can withdraw your money from your checking account at your own will
  • If your bank has insurance with the FDIC, you can safely place up to $250,000 in your bank and it will be protected from all losses.  (So check to see if all your bank deposits are insured)
  • You can do online bill paying
  • You can make purchases or make withdrawals 24 hours a day by using a check card or debit card
  • It can be used to track your money. Therefore, it can be considered a good money management system

Disadvantages of having a bank account:

  • The bank makes a profit from your deposits.
  • You will have to pay for certain services.
  • Withdrawing money from your savings account can sometimes cause your money to be penalized.
  • There's a charge if you use your ATM card at another bank
  • The bank will charge you for overdrawn accounts

Click Here to Continue Banking Tutorial  >> - How Do Banks Work