This is the minds on icon.

Banks and credit unions provide many different services. Take a moment to think about all the banking services you know about--and how they affect your life.

 

Create a mind map of the things you associate with banking and your feelings about them.

Reflection

Create a mind map by placing the word 'banking' in the center. Add words or images that describe:

  • the different services and products that a bank can provide
  • how banking and bank services affect your life (and how you feel about them)

Draw connecting lines between the words and images. On the connecting lines, write a couple of words that describe the connection between the ideas.

This is the action icon.

Financial Services

The most common need for individuals when selecting a financial institution is to be able to deposit their money and have access to it for a variety of reasons. In the class discussion, you may have shared that what you want is the ability to have an account with the financial institution.

The most common types of accounts are chequing accounts and savings accounts.

Resources

Research each of these account types by visiting the Financial Consumer Agency of Canada.

Choosing the Right Bank Account

Different banks will offer a variety of bank account products. Each one will vary in a number of important ways. When shopping for the right account for you, you should pay attention to the details of the account. These details include:

  • Monthly Fee - This is a base fee, usually paid once a month, to keep your account open. If there is a charge, you might want to look for another account that has no monthly fees.
  • Not Sufficient Funds (NSF) Charges - If your bank balance in an account dips below zero dollars, this is called an overdraft and the bank will charge you an overdraft fee. Even if the overdraft amount is very small--as little as $1.00--you will be required to pay this fee. Find out how much you will pay for each overdraft charge.
  • Transaction fees - What does the bank charge you for ATM, teller or cheque transactions? In some accounts, there may be a certain number of free transactions per month, after which you have to pay a fee for each one.
  • Online Banking - Are there any fees for paying your bills and banking online?
  • Reporting Fees - If you ask for monthly statements and bank book updates, you may have to pay for this service. Find out what this fee is and then you might consider switching to paperless banking.
  • Interest rate - What interest rate (if any) does the bank pay on your deposited money?

Resources

You can visit the Account Selector Tool (or search bank + account + selector + tool + canada + government) to learn more about the types of chequing and savings accounts offered in Canada.

You can also visit bank sites directly to learn more about their services.

  1. Royal Bank of Canada
  2. Toronto-Dominion Bank
  3. Bank of Nova Scotia
  4. Bank of Montreal
  5. Canadian Imperial Bank of Commerce
  6. Simplii Financial
  7. Tangerine

Reading Financial Statements

Once you start to use the services available from your financial institution, it will be necessary for you to read and interpret information from various financial statements. Look over the ATM receipt pictured below and answer the questions related to the receipt.

You may also need to review your account statement at the end of the month. Account statements are available as paper statements that are mailed to you, or are more commonly, electronic statements that you can review online.

Credit Cards

After chequing and savings accounts, one of the most common needs for individual customers from a financial institution is a credit card.

Credit cards are available from almost every financial institution. Credit cards are a convenient way to purchase larger items, rent vehicles, book hotels and shop online. To be competitive with other companies, credit card providers offer a variety of benefits that include:

  • added consumer protections and warranties
  • anti-theft protections
  • loyalty programs that offer gift certificates or travel miles
  • donations to charities or charitible causes

Despite the convenience and rewards programs that they offer, credit cards carry high interest rates and may have monthly fees.

Credit card debt can become a major financial burden if you're not careful. In 2015, Canadians had over $77 billion dollars in credit card debt. That's why it's critically important to take the time to select the right credit card for you and to understand all of the fees and penalties associated with the card.

Resources

You can use the credit card selector tool provided by the government of Canada (or search the Internet for government + canada + credit + card + selector + tool) to compare the rates of credit cards and see what incentives or rewards they offer. Use the filter tools on the left hand side of the site to find credit cards that fit your search criteria.

Reading Credit Card Statements

The format of a credit card statement will vary, but most credit card statements will include:

  • the credit limit associated with the card
  • the current balance
  • transactions (payments and charges to the account)
  • the minimum payment and due date for that payment
  • any incentive rewards that were earned

The interactive below will allow you to explore a credit card statement and answer some questions.

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