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SHOPPING FOR A BANK

The New York State Department of Banking recommends that you consider at least 3 banks before selecting one. For this assignment, you will visit 2 different banks and complete the comparison guidelines for each. You must have some brochures and literature from each of the two banks to hand in with the comparison guidelines. When researching the banks, you are looking for information regarding basic savings and checking accounts (do not research student accounts or premier accounts).

Due Date: Friday April 28, 2017

Value: This project is required for the 2nd marking period and will count as one test grade. You can earn up to 100 points, as follows:

Complete and accurate comparison guidelines for each bank = 60 points

Well-written summary explaining your reasoning: = 30 points

Brochures and Literature from each bank = 10 points

Comparison Guidelines

1. Location

a) How many locations does the bank have worldwide?

b) Where are they located (in what regions of the US or countries in the world)?

c) Which branch is most convenient for me to get to?

2. Hours and accessibility

a) What are the operating hours of the branch nearest your house?

b) Does the branch near me have a 24 hour ATM? Are there charges for using another bank’s ATM?

3. Interest rates

a) What rate does the bank pay for a basic savings account?

b) What rate does the bank pay for a basic checking account?

c) What rate does the bank pay for CDs? (find the rates for a 9 month and a 1 year CD)

4. Monthly fees

a) What is the monthly fee for a savings account?

b) Is there any way to get the monthly fee waived on a savings account?

c) What is the monthly fee for a checking account?

d) Is there any way to get the monthly fee waived on a checking account?

5. Overdraft protection

a) Does the bank offer overdraft privileges?

b) Is there a monthly or annual fee for having overdraft protection?

c) Is there a transaction fee if you use the overdraft protection? If so, how much is it per transaction?

6. Minimum balances

a) Is there a minimum balance required on a savings account? If so, what is the penalty for dropping below the minimum?

b) Is there a minimum balance required on a checking account? If so, what is the penalty for dropping below the minimum?

7. Requirements for opening an account

a) What identification do you need to bring with you?

b) How much money do you need to open a savings account? A checking account? A CD?

8. Services associated with savings/checking accounts

a) Does the bank offer online banking? Is there a fee?

b) Does the bank offer automatic bill paying? Is there a fee?

c) Does the bank offer direct deposit? Is there a fee?

9. Is the bank FDIC insured?

10. Debit cards

Does the bank offer debit cards? Is there a fee associated with debit cards?

11. Credit cards

a) Does the bank offer credit cards?

b) What is the interest rate charged on credit cards? (answer should be a range)

c) Is there a credit card rewards program? If so, how do you earn rewards? How can the rewards points be used?

Summary: In a well-developed paragraph of at least five to seven sentences, explain which of the two banks you would choose to open an account in and why. Make sure you compare what the banks are offering to reach your conclusion.

Sample Guideline Chart

Chase Citibank

|Location |a) 10,000 |a) 7,500 |

| |b) worldwide |b) throughout the US |

| |c) Liberty Ave in Ozone Park |c) 101-01 Rockaway Blvd. |

|Hours and accessibility |a) 24 hours |a) 9-4 Mon-Fri |

| |b) Yes, no fee |b) Yes, $3 per transaction |

|Interest rates |a) 1.01% |a) 1.01% |

| |b) .35% |b) .35% |

| |c) .02%, .10% |c) .05%, .25% |

|Monthly fees |a) $12 |a) $5 |

| |b) balance of $250 |b) no |

| |c) $15 |c) $20 |

| |d) balance of $1,500 |d) balance of $2,500 |

|Overdraft protection |a) Yes |a) Yes |

| |b) $2 |b) none |

| |c) $15 |c) $20 |

|Minimum Balances |a) no |a) $500 |

| |b) Yes, $15 per day |b) Yes, $25 per day |

|Requirements for opening an account |a) Passport |a) Passport |

| |b) $50 for savings and checking, $1,000 for CDs |b) $100 for savings and checking, $5,000 for CDs |

|Services associated with savings/checking accounts |a) Yes, $5 |a) Yes, $2 |

| |b) Yes, $2 |b) Yes, $5 |

| |c) Yes, $10 |c) Yes, $10 |

|FDIC insured? |No |No |

|Debit cards |Yes, no |Yes, no |

|Credit Cards |a) Yes |a) Yes |

| |b) 17.9-29.9% |b) 11.9-33.9% |

| |c) None |c) None |

Please note: The figures listed in the sample chart are completely made up and wildly inaccurate. There is a penalty for including any inaccurate information in your chart.

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