Program Managers

How is your financial fitness?

You can find out by taking the quizzes below
Financial Fitness Quiz
or
Financial Fitness Checkup

Topics

Additional Course Information

Banking and Financial Management Services

Some of the things you look for in a bank are its security, its access, and cost. Of course you’re looking for minimum cost to you. You want to know if your money is safe or not. You might be looking for a safety deposit box, but be really careful in this area because there are some legal problems you can get into if something happens to you. You will want to look at the types of accounts they have like checking and savings.

You’ll want to know what the interest rates are on savings, loans, and checking. Do you want a bank or credit union? Banks normally give low interest rates on savings and charge high interest rates on loans. Since they are membership organizations Credit unions will normally give higher interest rates on savings and charge lower interest rates on loans. Most bank or credit union accounts will be insured for up to $100,000. Where is the institution located? Is it located within easy access to where you are? The Navy Federal Credit Union has establishments on almost every base and location around the world. Are there any costs or fees involved? A lot of institutions will charge you for using the ATM.

Does your bank or credit union offer bill paying services? With this being the modern computer age, a lot of institutions will offer online bill paying services. Look around to find the institution of your choice and make a decision based on what you want them to provide for you.

Some reasons to use a bank instead of just dealing in cash and credit cards are:

• In a bank, the funds you deposit are insured up to a certain amount.
• Savings accounts and many checking accounts earn interest.
• Writing checks to pay bills or buy something is a great deal safer than using cash, especially if you're paying by mail. Maintaining a checking account can help you establish your credit.
• Low-interest loans to help you make major purchases.
• Statements to provide an accurate accounting of what you did with your money and how much interest it earned.
• Cancelled checks or bank statements to provide proof that payments were received and processed.

Savings banks (also called thrifts):

• Serve individuals and not businesses.
• As members of the Federal Deposit Insurance Corporation (FDIC) the first $100,000 of each account is insured.
• Normally pay more interest on your savings accounts
• Provide many of the same services as commercial banks.

Credit unions

• Are non-profit cooperatives. Members have a common association such as the military or farmers.
• Normally insured by the National Credit Union Administration (NCUA), which provides the same insurance coverage as the FDIC. Some credit unions are not insured so you should ask the question.
• Offer a higher interest rate on savings and lower interest rates on loans.
• Don't normally require a minimum balance on an account.
• Generally smaller than banks and Savings and Loans so they may offer fewer services.

Savings Accounts

Savings accounts earn interest on the money deposited in them. You can’t write a check on a savings account. Some savings accounts can double as debit (checking) accounts and you can draw against those accounts. Regular savings accounts let you make frequent deposits and withdrawals. The savings account balance is up to you. Interest is usually earned monthly or quarterly. Listed below are different types of savings accounts:

• Club Accounts – Like a Christmas Club, often require a minimum-amount of deposits and may restrict access to the account or impose penalties on early withdrawal
• Certificates of Deposit (CD's) - earn a certain interest rate over a period of time. In return you agree to leave the money on deposit until it matures. You will not have immediate access to the money
• Money Market Deposit Accounts - are designed for saving larger amounts of money and usually have a higher interest rate than other savings accounts. You may or may not be able to write checks against it or draw money out

Checking Accounts

Checking accounts let you deposit money into the bank and write checks to disburse those funds. Checking accounts normally don't earn interest. There are interest-bearing checking accounts so you have to ask.

Check Cashing

Most banks will cash checks issued by the Government or drawn on that bank. You may or may not have to have an account. You must be the payee on the check and show an acceptable photo ID. Most banks will not cash a check if it is a two party check. There may be a fee for the check cashing service.

Loans

Banks can and do provide a wide variety of loans. The types of loans, interest rates, and credit requirements will differ from one bank to another.

Money Transfer

Sometimes it is necessary to transfer funds to another bank or person immediately. Financial institutions will provide a way to complete these transactions. Check with the bank for procedures.

Safe Deposit Boxes

Many people use safe deposit boxes to store valuables like cash, jewelry, and valuables they don't need to access immediately. You will pay a fee to rent a safe deposit box. The rental amount varies by the size of the box.

Because safe deposit boxes are located in a bank's vault, they offer excellent security from theft, fire, and other risks. You will only be able access your safe deposit box during a bank's normal hours.

ATMs (Automated Teller Machines)

• Give you easy access to cash from your checking or savings accounts.

• Allow you make deposits, enter inquiries, transfer money, and perform other basic transactions on your accounts.

ATMs are accessed using an ATM or debit card. When you insert your card and enter your personal identification number (PIN) you will get access to your accounts.

Your PIN should be guarded at all times because if you lose your card someone with your PIN will have access to your accounts and your money. Memorize your PIN and be careful that people do not observe you using it.

There are a lot of things to think about for banking and financial management accounts. Remember credit unions are different from banks because credit unions are membership organizations and offer some different services. Something you might also want to consider is that banks can go out of business. Do your homework to find what you want and make sure you are always aware of where your accounts stand.

Assistance

Counseling

• Army - E-mail
  
  Anthony Powell – Ft. Bliss, TX
  Wk Ph:  915-568-4453,
  DSN:  978-4453
  Email:  anthony.powell1@us.army.mil

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• Navy - E-mail
  
  Mike Kempf – Pensacola, FL
  Wk Ph:  850-452-3228,
  DSN:  922-3228
  Email:  mikekempf@bellsouth.net

More information

• Important changes to credit reports for 2008
• Links to more information
• mysdcc.sdccd.edu

New Links 10-21-2008

• Boston.com
• The News Service
• mymoney.gov

Calculators

• Savings
• Monthly Cash Flow
• 401(k) Value
• Hidden Expense
• Life Insurance
• Loan Amortization
• Net Worth
• Retirement Planning
• Taxed and Non-Taxed Compounding

Glossary

• Common terms in financial planning

General Information

• SDCC has articulated the Navy PFM course for one college credit. Navy personnel who have graduated from the Navy PFM course qualify. Typically, it can be difficult to apply one credit and meet the requirements of a three credit semester long course at most colleges and universities. With that in mind, we have taken the initiative of developing a two credit online course that will be available upon completion of the Navy PFM course. Sailors who have completed the requirements of both the Navy PFM course and the online PFM course will be given credit for completing the three credit Consumer Studies 110 course offered by San Diego City College and Mesa College and transferable to any Servicemembers Opportunity College (SOC).

• For additional information or to see if you qualify contact a PFM counselor.