Banking in

the United

States

U.S. Banking System Overview The Federal Reserve System is the central

banking system of the United States. Regulates the banking system Maintains the stability of the financial system Protects the credit rights of consumers

Currency is created outside of the Fed, the U.S. Department of the Treasury.

Banking SafetyFDIC is the Federal Deposit Insurance Corporation

Insures deposits held in bank accounts – up to $250,000

All chartered banks are required to be a member of FDIC “Member FDIC”

TCF Bank is a member of the Federal Deposit Insurance Corporation

Types of Bank Accounts

Checking Accounts – account for everyday use Interest Bearing Non-Interest Bearing

Savings Accounts – reserved funds for future use Regular Savings Money Market Time Deposit (CD’s)

Monetary Instruments – used as a form of payment Cashiers Checks Money Orders Travelers Checks

Checking Accounts Everyday Money Management

Allows you to easily pay for living expenses Food, clothing, books, school supplies

Provides a place to deposit money your receive.

Financial aid awards, money from home, loans, stipends

Keeps your money safe. Provides a record of your spending

ATM/Check Cards/OneCard Debit Secret Codes or PIN numbers

Choose 4 or more digits to be used with ATM transactions and transactions with merchants.

VISA® or MasterCard® Logo and function Debits the amount of the purchase from your

checking account.

Account Opening Requirements When you’re read to open an account, you

will be asked to provide the following: Name Local U.S. address Home country address Phone Number E-mail address Valid identification

Valid forms are: U.S. driver’s license or state ID, passport, U.S. military ID, Matricula Consular Card

Banking Tips Complete all transaction tickets and checks Endorse all checks Always bring photo identification with you to the bank Keep a check book register Reconcile your bank statement Contact your bank immediately with any discrepancies. Be sure to keep your bank informed of any address,

phone, and e-mail changes When using your check card in another country, be sure

to contact customer service to prevent disruption in your account. International service fees may apply when using your account out of the U.S.

Writing a Check

Writing a Check

Balancing Your Checkbook

Fee 8/23 ATM Fee 2 00 378 00

International Wire Transfers To send a wire outside of the U.S. you must

provide your bank with the following: Bank Name Bank Swift Code (if applicable) City and Country of the Bank Person’s Name and Address Person’s Account Number Ask about the charge $30 - $60 Certain restrictions apply for some countries. See

your banking representative for details.

Domestic Wire Transfers To receive a wire in the U.S. or to send a

wire to someone with a U.S. bank account requires:

Bank Name Bank Routing Number or ABA Number Person’s Name and Address Person’s Account Number

Ask about the charge $10 - $40

Credit CardCredit Card

Credit Cards are a system of payment where the issuer lends money to the consumer. Consumers are allowed to revolve their balance (carry over balances from month to month) at the cost of interest charges.

A credit card gives you basically a short term loan, and like a loan you get approved for different amounts and you pay interest on the amounts. Eventually, depending on your credit history, you’ll be able to get a credit limit anywhere between $300 and $25,000.

When choosing a credit card, consider the following factors:

Annual Percentage Rate (what it costs you per year in interest)

Periodic Rate (interest applied to your monthly payment)

Grace Period (the number of days your purchase is without applied interest)

Annual fees (cost for the privilege of having the card)Having “good credit” as a result of paying your credit card bills on time, can help you get approved for loans, mortgages, car payments, and apartment leases; while bad credit (debt) can make these things almost impossible.

Credit cards make it easy to fall into uncontrolled spending. The following is an example of what your bill may look like if you only pay the minimum monthly payment of $60 on a $300 balance with 18% monthly interest:

The total interest paid ended up being $535.09, making the total expense $835.09 instead of $300. And it took 14 months to pay off.

Date Previous Balance Interest Charge Balance plus Interest Your Payment Remaining Balance

1-Jan $300.00 $54.00 $354.00 $60.00 $294.001-Feb $294.00 $52.92 $346.92 $60.00 $286.921-Mar $286.92 $51.65 $338.57 $60.00 $278.571-Apr $278.57 $50.14 $328.71 $60.00 $268.71

1-May $268.71 $48.37 $317.07 $60.00 $257.071-Jun $257.07 $46.27 $303.35 $60.00 $243.351-Jul $243.35 $43.80 $287.15 $60.00 $227.15

1-Aug $227.15 $40.89 $268.04 $60.00 $208.041-Sep $208.04 $37.45 $245.48 $60.00 $185.481-Oct $185.48 $33.39 $218.87 $60.00 $158.871-Nov $158.87 $28.60 $187.47 $60.00 $127.471-Dec $127.47 $22.94 $150.41 $60.00 $90.411-Jan $90.41 $16.27 $106.69 $60.00 $46.691-Feb $46.69 $8.40 $55.09 $55.09 $0.00

• $500 took 18 months to pay off at $1,191.30.

DatePrevious

BalanceInterest

ChargeBalance plus

Interest Your Payment Remaining Balance

1-Jan $500.00 $90.00 $590.00 $95.00 $495.00

1-Feb $495.00 $89.10 $584.10 $95.00 $489.10

1-Mar $489.10 $88.04 $577.14 $95.00 $482.14

1-Apr $482.14 $86.78 $568.92 $95.00 $473.92

1-May $473.92 $85.31 $559.23 $95.00 $464.23

1-Jun $464.23 $83.56 $547.79 $95.00 $452.79

1-Jul $452.79 $81.50 $534.29 $95.00 $439.29

1-Aug $439.29 $79.07 $518.37 $95.00 $423.37

1-Sep $423.37 $76.21 $499.57 $95.00 $404.57

1-Oct $404.57 $72.82 $477.39 $95.00 $382.39

1-Nov $382.39 $68.83 $451.22 $95.00 $356.22

1-Dec $356.22 $64.12 $420.34 $95.00 $325.34

1-Jan $325.34 $58.56 $383.91 $95.00 $288.91

1-Feb $288.91 $52.00 $340.91 $95.00 $245.91

1-Mar $245.91 $44.26 $290.17 $95.00 $195.17

1-Apr $195.17 $35.13 $230.30 $95.00 $135.30

1-May $135.30 $24.35 $159.66 $95.00 $64.66

1-Jun $64.66 $11.64 $76.30 $76.30 ($0.00)

Identity Protection Identity theft can ruin your financial future and

make it impossible for you to maintain good credit.

Identity theft will leave you with bad credit that takes months or years to correct; even though you get reimbursed for the thief's bills.

A thief can take over your account by acquiring account information such as account or card numbers and drain your assets.

A thief can also use your personal information to open new accounts and credit lines without your knowledge.

Prevent Theft Never give out personal information (SS number, account numbers, bank

routing numbers, PIN’s) over the phone. Only use secured web sites when shopping online Never leave your ID in the car unattended Do not carry your SS card, birth certificate, or passport unless absolutely

necessary Do not carry cards that show your SS number Remove your name from phonebooks and reverse directories Mail bills from the post office Keep photocopies of your credit cards at home in a safe place Order your credit report yearly from one of the 3 credit bureaus free of

charge Never reply to e-mails requesting personal financial information Cross off card information on receipts Shred receipts, credit card offers, and statements

Learn more about TCF Bank Stop by your campus branch located

inside the Holmes Student Center Visit www.tcfbank.com Call 1-800-TCF BANK

Questions?