Personal finance report

Press Release #1 Commercial Banks

by Elizabeth Massucci, David Gardne , Bryan Jannetty, Madison Altwies

A commercial bank is a for-profit institution that offers a full range of financial services, including checking, savings, and lending. The most common types of accounts commercial banks offer are savings accounts, checking accounts, and certificates of deposits (CD).

A savings account is the best way to safely save up your money while earning interest on it. A checking account offers many more deposit and withdrawal options from that of a savings accounts. However, yet many do not collect interest on your money in the account. A certificate of deposit is a savings alternative in which money is left on deposit for a stated time period to earn a specific rate of return.

When polled, two Southington High School senior business classes, only 48% of students said that they cUITently have a savings account. When asked about having a CD, none of the students said that they had one. Some students were more knowledgeable to the banking industry and the economy. One student said that a CD is a "waste of money right now," while another student said, "CD? That's a compact disc right?"

These surveys showed the knowledge that some high school students know much more about the facts of banking while others know very little. To those that do not know much about the banking industry, it would be extremely beneficial in the long run to learn how to properly save their money, and know the different ways in which commercial banking can help you.

Press Release #2 Credit

Unio~----

b Elizabeth Massucci,

avid Gardner, Bryan Jannetty, Madison Altwies

In today's world, there are many different ways to safely keep track of your money. Some include commercial banks, online banking and credit unions.

Credit unions are non-profit organizations owned by their members and organized for their benefit. Usually its members have some common bond like a membership in the same labor union. Credit unions offer a variety of services such as checking accounts, loans, credit cards, ATM's, and investment services.

Unlike commercial banks, which are owned by stock-holders, credit unions are always in constant contact with their members. My classmates and I recently interviewed Hannah Zmarlicki, the SHS branch manager of the Achieve Credit Union. She shared a lot of important information from her experience working at the credit union. According to manager Zmarlicki, credit unions usually have higher interest rates on savings and certificates of deposits. Also, there are usually lower rates on loans.

Altogether, there are fewer and smaller fees at credit unions. The main advantage of credit unions is the fact that they are non profit. This feature means that the earnings of the organization are returned back to its members. Unlike commercial banks, whose profit~

and earnings are divided among the bank's stock-holders for the benefit of the

bank (not its members.) My classmates and I also asked Manager Zmarlicki what her opinion was on teenage students and their money saving habits. She said that from her experience there are kids who are very good at saving their money, and are responsible with putting the money they earn into accounts. However she also has encountered kids who can barely maintain their account, and would rather spend their money once they receive it instead of save it for later. Either way, credit unions are a great option for keeping money safe, with their low fees and loan rates and high interest rates every member can benefit somehow.

Press Release #3 On-Line Banking

by Elizabeth Massucci David Gardner Bryan Jannetty, Madison Altwies Online banking is changing the way the banking system works. Online banking offers many advantages such as faster transactions and higher interest rates on both certificates of deposits and savings accounts. Another advantage is being able to readily access your account information or set up automatic payments on bills. Money is able to be quickly and easily transferred from account to accounts.

Online banking company's interest rates are able to be higher because they pay substantially less money to employees because they do not need branch employees. They are able to cut back and let the automated system do the work of many employees. This gives the company some leniency on the interest rates to make them higher compared to regular commercial or credit unions with many local branches throughout the country.

The biggest concern with online banking is that the account information is not properly secured. Everybody is afraid that people will be able to hack into the network and steel money. The truth to this myth is that your money is very secure. The companies use a very safe encryption system that ensures that no hacker online is able to steal your hard-earned money. If you are still unsure about the safety, ask your bank to see if they offer a 路l28-bit encryption system. Even if your money does somehow get stolen, you may feel better knowing that the FDIC (Federal Deposit Insurance Corporation) insures your money up to $250,000.

We are in the age of technology. Paper is becoming more and more obsolete as each year progresses. The internet is connecting everybody together making most information available in a few quick clicks. This quick access to information offers many benefits in a variety of ways; one of which is banking.