The FEPS (Financial Empowerment and Problem Solving) Program

The FEPS (Financial Empowerment and Problem Solving) Program

The FEPS (Financial Empowerment and Problem Solving) Program is generously funded by the Ontario Ministry of Community and Social Services and delivered in partnership with: These FEPS training materials and support documents created by West Neighbourhood House for the FEPS program. Basic Banking Services

Understanding the Basics of Banking Services in your community At the end of the workshop You will be able to: Decide what type of bank account meets your needs Identify some of the savings account options

available to you Understand the different banking services in your community Financial Institutions Banks Financial institutions licensed by the federal government. Its primary activities include lending money, deposits, investments and securities.

Trust Companies Financial institutions licensed by the federal or provincial government. A Trust Company can lend money like banks Financial Institutions Credit Unions Are cooperative financial institutions that are owned and controlled by its members and

regulated by the provincial government. They provide full financial services to the membership. If you bank at a credit union you are a member too! Financial Institutions Opening an Account Opening an account in Canada is fairly straightforward. 1. You do not need to be employed 2. No minimum balance is required

3. You will need to present identifications Each Financial Institution has specific guidelines, check with each one about Their specifics when you are looking to open an account. Financial Institutions Opening an Account A bank account provides access to banking services including direct deposit, pre-authorized bill payments, ATM machines, on-line banking and direct debit.

Opening an account is fairly straightforward. 1.You do not need to be employed 2.No minimum balance is required 3.You will need to present identifications Financial Institutions Allowable Identification To open an account, you must present two pieces of identification such as: A drivers licence issued in Canada

A Canadian or foreign passport A Certificate of Canadian Citizenship or Certification of Naturalization Permanent Resident card or Citizenship and Immigration Canada Form IMM 1000 or IMM 1442 A birth certificate issued in Canada Financial Institutions Allowable Identification Contd A Social Insurance Number card issued by the Government of

Canada An Old Age Security card issued by the Government of Canada A Certificate of Indian Status issued by the Government of Canada A provincial health insurance card with photo Each province regulates the use of allowable identification separately. Please check with the bank that you choose on what is approved and what is not!

Financial Institutions Types of Bank Accounts Saving Accounts Chequing Accounts TYPES OF ACCOUNTS Saving Accounts These accounts usually have a higher interest rate

than other accounts It is used for putting money into that you do not need immediately so you can allow it to grow. Why open a Saving Account? Creating an emergency fund Saving for a future purchase (tuition, furniture etc) TYPES OF ACCOUNTS Type of Saving Accounts Short Term Accounts Allows flexibility to access your money easily. Fees are usually based

on minimum balances. Term Deposit An investment product where you deposit a fixed sum of money for a set period of time and are paid interest. These can include; GIC Guaranteed Investment Certificates; RESP Registered Education Savings Plan; RRSP- Registered Retirement Savings Plans; RDSP Registered Disability Savings Plans. Samples of Registered Investment

Accounts RRSP Registered Retirement Savings Plans A plan registered with the Government through which you can save funds for your retirement years. RESP Registered Education Savings Plans

This plan helps with savings for education. It will grow tax free until a child named in the RESP needs the funds to pay for a post-secondary education program. The government provides a fund matching program. TYPES OF ACCOUNTS Registered Investment Accounts cont... RDSP Registered Disability Savings Plans

A savings plan designed for people with disabilities in Canada. A RDSP can assist families and individuals save for the long-term without effecting ODSP benefits now. The government provides a matching funds in some situations. TFSA Tax Free Savings Account You can invest up to $5,000 per year and not pay any tax on the interest earned.

TYPES OF ACCOUNTS Chequing Accounts a safe place to keep money that you plan to use often to pay bills and make purchases. You can write cheques, pay bills on-line, withdraw from ATMs, withdraw at the bank. These accounts earn less interest than a savings account, and may have higher transaction fees. Shop around to get the best prices on fees to meet your needs!

Shopping for an Account Step. 1 Determine Your Banking Needs Do you want to earn interest? Will you have a lot of transactions in a month? Step. 2 Shopping Around Visit banks and financial institutions, or call their Customer Service Line. A Customer Service Representative will tell you about the package that best meets your personal needs and how much it will cost.

Financial Institutions Affordable Banking Services Accounts priced at $4 or less per month are available at some financial institutions. You need to shop around to ensure you are paying for only what you need. Discounted or free services are offered to youth, students and seniors. Ask your bank if you qualify! Overdraft, lines of credit, and low-rate credit cards are alternatives to high-cost payday loans

Alternatives to High Cost Loans Personal Line of Credit A flexible way to get extra funds for things like: unexpected home renovations, car repairs, or other emergency costs You can withdraw up to the approved credit limit. Once you've paid it back, you can use it again without re-applying Low-Rate Credit Card Low annual interest rates apply to clients with a good credit rating Always talk to your bank about the best rate available

Pay on time or you could lose your low interest and poor credit rating Banking in Canada Bank Statements Your bank will send a statement every month which will show you all the activities/transactions in your account. These include deposits, withdrawals', bill payments, service fees, interest earned etc. You can read them on-line daily, have your bank mail

you a statement monthly, or you can have them emailed. There is a cost for the paper statement. Banking in Canada Bank Statements cont... Regularly check your statement to make sure it is correct and there are no transactions that you did not make. If you have questions or concerns, you must call your bank immediately.

Banking in Canada Account Statements Banking in Canada Other Services Safety Deposit Boxes Wire Transfers Paying your bills on-line, over the phone or through the ATM.

Purchasing certified cheques, money orders or money drafts Exchanging currency Banking in Canada Service Complaints What can I do if I have a problem with a Financial Institution? 1. Work out the problem with a customer service rep. 2. Contact the Branch manager

3. Contact the banks Ombudsman 4. Contact the Ontario Ombudsman for Banking Services and Investments (OBSI) Banking in Canada Fringe Financial Services What are they? Payday loans companies, cheque-cashing services and pawnbrokers. These companies charge high services fees and

interest rates. When looking for services, be sure to compare costs associated with Fringe Services to that of regulated Financial Institutions Banking in Canada Fringe Financial Services Fringe Financial Services are easily accessible and many

people do not understand the dangerous interest and charges Banks provide a lot of the same services for free For Example: Government Cheques FFSs charge a fee to cash, Financial Institutions do not! You dont even need an account to cash these cheques! Banking in Canada Service Complaints What can I do if I have a problem with a Fringe Financial

Service? 1. Work out the problem with a customer service rep. 2. Contact the regional or area manager 3. Contact the Ontario Ombudsman for Banking Services and Investments (OBSI) 4. Call the Ministry of Consumer Services (Ontario Government) Banking in Canada

Using the ATM ATMs (Automatic Teller Machines) can be used to access your accounts. You can deposit, withdraw, pay bills, transfer funds and view your balance. When creating your PIN (personal identification number) be careful! Dont use codes like birthdays or anniversaries and dont tell anyone your PIN! Use the machines at your bank to avoid unnecessary fees and charges There are nearly 700,000 ATMs in Canada

Questions? Thank you! United Way Toronto would like to gratefully acknowledge the wonderful support of Alterna Savings Credit Union, Consolidated Credit Services of Canada, Credit Canada, JVS of Toronto, and St. Christophers House. As well, it would like to thank the voluntary

efforts of the Adult Learning Consultants Tracy and Maggie! For more information or help Contact the FAPS worker at: St Christopher House Agincourt Community Services Jane Finch Community and Family Centre PLEASE HAND IN YOUR EVALUATION SHEETS THANK YOU!

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