BAEL
BAEL
BAEL
Savings Account
Banking Services Offered
Checking Services Credit Card Financing
• Debit Card Safety Deposit Box
A card that is used to make purchases
A box at a financial institution where a
that are charged against a checking
customer can store documents, jewelry,
account.
or other valuables.
• Mobile Banking
• Paying Bills on Time Automated Teller Machine (ATM)
• Checking Account Fees A machine where individuals can deposit
• Monitoring Your Account Balance and withdraw funds any time of the day.
• Reconciling Your Account Balance
Cashier’s Check
Example: A check that is written on behalf of a
Your most recent checking account person to a specific payee and will be
statement shows that you have a charged against a financial institution’s
balance of $300. However, yesterday you account.
wrote checks totaling $250 to pay bills.
Money Order
When these checks clear, your balance
A check that is written on behalf of a
will be $50. Today you received a credit
person for a fixed amount that is paid in
card bill for $200. Even though this
advance.
amount is less than the balance shown
on your most recent statement, you do Traveler’s Check
not have sufficient funds in your checking A check that is written on behalf of an
account to pay this bill. individual and will be charged against a
large well-known financial institution or investment because other investments
credit card sponsor’s account. could be worth less in one year than they
are worth today. The trade-off is that you
Selecting a Financial Institution will receive a relatively low rate of interest
Criteria Used to Select a Financial Insti- on your investment.
tution Term Structure of Interest Rates
Convenience The relationship between the maturities
You should be able to deposit and of risk-free debt securities and the
withdraw funds easily, which means the annualized yields offered on those
financial institution should be located securities.
close to where you live or work.
Loan Rates
Paying Bills Online
Annualized Deposit Rates Offered on
Many financial institutions have estab-
Deposits with Various Maturities
lished a system in which you can pay
Annualized Deposit
bills online instead of writing and sending Maturity
Rate (%)
checks.
Interest Rates
Decrease
Yield