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Banking module

Trainer’s introduction
Banking institutions, including banks, trust companies, credit unions and caisses populaires, are
essential tools for managing personal finances, yet many people do not know how to use them
effectively and at least cost.

The mini-module covers the basics of how banking institutions work for those who are not
familiar with Canadian banking institutions. The second covers ways to select the banking
services that participants need and how to minimize the cost of banking services. Mini-modules
3, 4 and 5 cover how to avoid fraud and other problems related to banking services.

Learning objectives
After completing the module, learners will be able to:

• Describe the basic services offered by banks, trust companies, credit unions and caisses
populaires, including deposit services, card services and loans
• Explain the differences between chequing accounts, savings accounts and term
deposits, and when to use each of them
• Read an account statement to identify any errors or unauthorized transactions
• Explain how to correct any errors or unauthorized transactions
• Describe what deposit insurance covers and what it does not
• Compare savings resulting from different simple and compound interest rates
• Apply the Rule of 72 to estimate the doubling time for an investment
• Describe the fees typically charged for banking services and strategies to reduce or
minimize the fees
• Describe the rights of access to basic banking

Materials/equipment required
• Copies of selected mini-modules or activities for participants
• PowerPoint file: Banking
• PowerPoint projector and screen
• Internet connection (if using)
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Time required
To do all the activities in this To complete the module in
module would require one hour, focus on:
approximately:
Introduction • 10 minutes • Activity 1
1: Basic banking • 20 minutes • Slides 6 to 7
2: Banking accounts and • 30 minutes • Slides 13 to 14
packages • Activity 4
• Activity 6
3: Alternative financial • 10 minutes
arrangements
4: Your rights and • 20 minutes • Slides 23 to 25
responsibilities
5: Banking and fraud • 20 minutes • Slides 32 to 34
Action plan • 5 minutes • Activity 11

Suggested activities and PowerPoints

Use the slides and the online modules. The text provides additional information, items that are
not easily represented in a slide, worksheets and other references.

Select the slides you will need for your presentation. You will not need all the slides if you don’t
plan to cover all the topics.

Introduction
Customize the agenda as needed. Introduce the workshop topic and outline the contents.

Slide 1: Banking title page

Banking
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Slide 2: Agenda

Agenda
Start time: ______
Break time: ______(10 minutes)
End time: ______

Please set phones to silent ring and answer outside of the room

Activity 1. Icebreaker: Banking services

Raise the topic of banking by asking for a show of hands for different types of banking
services. E.g.:
• How many people have a savings account? A chequing account? A debit card? A bank
loan?
• How many know what their banking services cost each month?
• How many have compared the services and costs at different financial institutions
before choosing the one they have?
Extend the discussion by asking questions such as the following:
• If there’s one thing you want to learn in this session, what would it be?
• What’s the most important thing to know about using banking services to manage
your personal finances?
• If there’s one thing you could already tell your best friend about using banking
services to manage your money, what would it be?
Conclude the activity by summarizing some things people already know, and how the session
is going to build on them to help participants use banking services more effectively to
manage their personal finances.

Slide 3: Banking

This module covers:

• The basic services that financial institutions offer
• How to choose the type of banking account you need
• What your rights and responsibilities are when using a financial institution
• How to keep your accounts safe
• What to do if you think someone may be using your account illegally
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Mini-module 1: Basic banking

Slide 4: Title slide: Basic banking

Basic banking

Overview

Slide 5: Basic banking

This section covers:

• Basic banking services, such as deposits and card services
• How the deposit insurance system keeps your deposits safe
• How to use banking services for your everyday needs

Banking services

Slide 6: Banking services

Banks, credit unions, caisses populaires and trust companies offer:

• Deposit services
• Card services
• Loans
• And other services

Slide 7: Deposit insurance

• Protects depositors if insured institution cannot return deposits

• Different deposit insurance systems:
o One for institutions regulated by federal government
o Others for institutions regulated by province or territory
• Check which insurance system applies to your deposit
and what the insurance limits are
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Slide 8: Ways to do your banking

• In person
• By phone
• By desktop Internet or mobile device
• By automated teller machine
• By debit card reader (point-of-sale terminal or POS)

Banking for your future

Slide 9: Banking for your future

Consider automatic transfer to savings account

• Save for emergencies
• Prepare for big expenses
• Start on long-term savings and investments

Activity 2. Banking for your future

Have participants fill in the Banking for Your Future worksheet. Prompt discussion by asking
questions such as the following:
• How many people already have an automatic transfer to a savings account?
• How many people think they or their friends can regularly achieve a savings goal
without an automatic bank transfer?
• How does an automatic bank transfer make it easier to save for important financial
goals?
o Answer: If your money is in your savings account instead of your chequing
account, you’ll be less likely to spend it. You’ll just adjust your spending, but
the money will still be there if you need it.
• What’s the best amount to have transferred automatically to a savings account?
o Answer: The best amount is different for everyone, depending on their own
financial needs and goals. But financial experts suggest aiming for at least 10
per cent of your monthly income after you have paid off any high cost loans. If
you save more than 10 per cent, you’ll achieve your savings goals faster.
• Why do you think more people don’t set up an automatic transfer to a savings
account?
o Answer: They may not know about them, or how to set one up. They may
worry that they can’t get by with less money to spend.
• When would deposits in a savings account not be the best financial choice?
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o Answer: If you are paying interest on debt, even at a low rate, it is usually
better to pay off the debt first. The return on a savings account will not likely
be better than that from avoiding interest payments on debt, especially when
taxes are considered.

Activity 3. Summary of key messages

Have participants review the topics covered.
Have participants in pairs or small groups discuss and write down the three or four most
important things they learned during the session.
Ask a few to compare their lists with the Summary of key messages (in the text or
PowerPoint slide). Clarify any misunderstandings and point out how the messages build on
the topics participants identified in the first activity.

Slide 10: Summary of key messages

• Deposit institutions include banks, credit unions, caisses populaires and trust
companies
• They help you manage your money and keep it safe
• Main services include deposits, debit card services and loans
• Services are available:
o In person
o Online by phone or mobile
o Through automated teller machines

Mini-module 2: Banking accounts and packages

Slide 11: Title slide: Banking accounts and packages

Banking accounts and packages

Overview

Slide 12: Banking accounts and packages

This section covers:

• The main features of chequing and savings accounts
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• The interest paid and how it affects your savings

• The account fees you’ll pay and how to reduce them
• How to read your account statement

Slide 13: Savings accounts

• Pay higher rate of interest

• May not offer debit card or chequing
• May have fees on basic transactions
• May have limit on number of free transactions
• May require one or more days to transfer money

Best for money you won’t need for day-to-day expenses

Slide 14: Chequing accounts

• Pay lower interest, or none at all

• Include debit cards and chequing
• May offer basic services at no fee
• Usually allow more free transactions
• Minimize delay for withdrawals, transfers and cheques
• May offer special rates for certain groups

Best for day-to-day banking

Fees and costs

Slide 15: Banking tools

Click here to view page online

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Activity 4. FCAC banking tools

Click the slide image to demonstrate the FCAC Banking tools page if you have an Internet
connection. Explain that the Banking Tools are interactive tools to help Canadians choose the
best accounts for their needs.
Ask participants for selection data that they are interested in and then show the results.
Point out the tabs at the top of the results table, which provide information on additional
account features.
Have participants use the selector tool during the session or later to find an account that best
suits their needs.

Slide 16: Interest

Interest paid on your accounts adds to your savings

Savings accounts normally pay compound interest:

• Interest on interest previously paid into your account

Some investments pay simple interest:

• Interest is calculated on the original amount only

Activity 5. Interest calculator

Go to the interest calculator online.
Ask participants for interest calculations that they are interested in and then show the
results.
• E.g.: How much interest would you earn on $1000 at 1%, 5% or 10% per year under
various conditions?
• What would you have to earn to save a million dollars for your retirement, to save for
a mortgage or a vacation?
Point out that interest contributes to savings, but not as much as making regular
contributions to a savings account.
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Slide 17: Account statement

Refer to module for complete example

Activity 6. Account statement

Point out the key elements of an account statement, including:
1 – Your financial institution’s name and address
2 – Your name and address
3 – The time period that the statement covers
4 – Your account number
5 – The amount in the account at the start of the period
6 – Column shows transactions the financial institution has recorded
7 – Account fees charged by the financial institution
8 – Column shows money taken out of account
9 – Column shows money put into account
10 – Column shows total amount in the account

Advise participants to check their account statements at least every month to check for
errors or any fraudulent transactions.
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Slide 18: Manage your fees

Manage your account fees to reduce your banking costs

• Watch how many transactions you make
• Use the cheapest method to do your banking
• Get only the records you really need
• Watch your account balance
• Ask for special fees based on your age or minimum balance
• Negotiate for lower fees

Activity 7. VIDEO: Banking tips

Screen the video, Banking tips.
Introduce the video and give participants a copy of the video response sheet. Have them
answer the questions on the sheet as they view the video and when it ends.
Following the video, ask some participants to share their comments with a neighbour or with
the group.
Extend the discussion by asking questions such as the following:
• What tips have you used in the past to manage your banking costs?
• Which tips from the video would work best for you?
• Can anyone describe how they resolved a service or cost problem they had with a
financial institution?

Video response sheet

Name: _________________________________ Date:

________________________________

Name of video: _______________________________________________________________

What points in the video do you agree with? What points in the video do you disagree
with?

What points in the video do you need more information about?

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If you had to summarize the video for a friend, what would you say were the most important
points?

Activity 8. Summary of key messages

Have participants review the topics covered.
Have participants in pairs or small groups discuss and write down the three or four most
important things they learned during the session.
Ask a few to compare their lists with the Summary of key messages (in the text or
PowerPoint slide). Clarify any misunderstandings and point out how the messages build on
the topics participants identified in the first activity.

Slide 19: Summary of key messages

• Pick a convenient location

• Get only the services you need
• Pick the account with the lowest fees for the services you need
• Compare rates before you open an account
• Check your account statements every month

Mini-module 3: Alternative financial arrangements

Slide 20: Title slide: Alternative financial arrangements

Alternative financial arrangements

Slide 21: Alternative financial arrangements

Alternative financial arrangements include:

• Payday loans
• Cheque-cashing services
• Finance companies
• Unregistered services in ethnic communities
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Slide 22: Risks of alternative financial arrangements

• They are not regulated like banks

• They offer less security
• They often charge higher fees

Read about Payday loans

Mini-module 4: Your rights and responsibilities

Slide 23: Title slide: Your rights and responsibilities

Your rights and responsibilities

Slide 24: Your rights and responsibilities

This section covers:

• Your rights when you use a regulated financial institution
• The responsibilities you have to keep your account secure
• How to make a complaint about a financial institution

Slide 25: Consumer rights

• Right to open an account when you present the correct ID in person

• Many banking institutions offer a basic chequing account for $4/month
• Right to information about your account in writing
• Right to cash many government cheques for free
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Slide 26: Your responsibilities

• Read and understand account agreement

• Check your account statement regularly
• Report anything you think is not right
• Keep your account documents, passwords and PINs secure

Slide 27: The debit card code

A voluntary code that protects you when you use debit card services in Canada

You must:
• Choose a PIN that is hard to guess
• Keep your PIN secure
• Check your account statements
• Report problems to your financial institution

For more information, contact FCAC

Slide 28: Making complaints

Financial institutions must have a way for customers to make complaints

• Step 1: Discuss problems with local branch

• Step 2: Ask for review by senior bank official
• Step 3: Ask for review by an independent official
• Contact federal, provincial or territorial regulator

For more information, contact FCAC

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Activity 9. Summary of key messages

Have participants review the topics covered.
Have participants in pairs or small groups discuss and write down the three or four most
important things they learned during the session.
Ask a few to compare their lists with the Summary of key messages (in the text or
PowerPoint slide). Clarify any misunderstandings and point out how the messages build on
the topics participants identified in the first activity.

Slide 29: Summary of key messages

• You have rights at your financial institution

• You can complain if your rights are not honoured
• Independent officers can help

Mini-module 5: Banking and fraud

Slide 30: Title slide: Banking and fraud

Banking and fraud

Slide 31: Banking and fraud

This section covers:

• How debit card fraud happens
• How to protect yourself from debit card fraud
• What to do if you are a victim of debit card fraud
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Slide 32: Debit card fraud

Can happen with:

• An altered card reader or ATM
• A thief who watches you enter your PIN
• A separate card reader
• A stranger who steals your card and PIN

Slide 33: Protect yourself from debit card fraud

Debit card tips:

• Choose a PIN that’s hard to guess
• Hide your PIN and don’t share it
• Keep your debit card in a safe place
• Don’t lend your card
• Swipe your card yourself (or watch it)
• Notify the card issuer if:
o Your card stops working
o Your statement shows a purchase you didn’t make
o Your statement does not show a purchase you did make

Slide 34: If you are a victim of fraud

If your card or PIN has been stolen or compromised:

• Contact the company that issued the card
• Contact your local police
• Contact Canada’s two main credit bureaus:
o Equifax Canada (www.equifax.ca)
o TransUnion Canada (www.transunion.ca)
• For more information, FCAC

Tip:

If you have time, show the video from the Fraud module, Debit and credit card fraud, or have
participants view it on the Your Financial Toolkit website.
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Activity 10. Summary of key messages

Have participants review the topics covered.
Have participants in pairs or small groups discuss and write down the three or four most
important things they learned during the session.
Ask a few to compare their lists with the Summary of key messages (in the text or
PowerPoint slide). Clarify any misunderstandings and point out how the messages build on
the topics participants identified in the first activity.

Slide 35: Summary of key messages

• Stay alert to fraud. It can happen to you!

• Keep card, PIN and other information secure and confidential
• If you become a victim, tell the company that issued the card and the police

Action plan

Activity 11. Action plan

Have participants review the Action plan.
Have participants check off any action that they may need to take.
Ask participants to decide when and how they will take the action they need.
Ask if any participants are willing to share their plans for action, using the Action plan slide if
necessary.
Extend discussion with questions such as the following:
• What’s the first step you need to do to better manage your banking?
• What items on the checklist need the most work?
• What makes some items on the checklist harder to do than others?
• What other types of problems with banking services do you need more information
about?
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Slide 36: Summary of key messages