BANKING

More Than Just a Saving

 What Will We Gonna Discuss

Definition and Various Types Pros & Cons of The Effective

Types of of Financial Having Multiple Use of Savings
Banking Institutions Saving Accounts Accounts
1
 TYPES - based on the type of business
they conduct.

Commercial Bank

Provide services to private individuals and

businesses.

DEFINITION Retail Bank

Banking is an industry that handles cash,
Provides credit, deposit, and money
credit, and other financial transactions management to individuals and families.
for individual consumers and businesses.
Banking provides the liquidity needed for
families and businesses to invest in the
future.

HOW IT WORKS
Banks are a safe place to deposit excess
cash, and to manage money through
products like savings accounts,
certificates of deposit, and checking
accounts.
TYPES - others
Community Banking
Smaller than commercial banks.
Internet Banking
Provides services via the world wide web.
Savings and Loan Banking
Offer a higher interest rate to depositors.
Investment Banking
Finds funding for corporations through
initial public stock offerings or bonds.
 TYPES - others

Credit Unions
Provide low-cost and more personalized
services for the members.

Merchant Banking
Provide mezzanine financing, bridge
CENTRAL BANK (BANK financing, and corporate credit products
for small business.
INDONESIA)
To achieve this goal, BI is supported by three Sharia Banking
pillars: Conforms to the Islamic prohibition against
1. Establish and implement monetary policy. interest rates.
2. Manage and maintain the smooth
operation of the payment system.
3. Regulate and supervise banking.
2
REGULATORY FRAMEWORKS
FOR FINANCIAL INSTITUTIONS
Central Banks
Responsible for the oversight and
management of all other banks.

Retail and Commercial Banks

Internet Banks
Credit Unions
Savings and Loan (S&L) Associations
FINANCIAL INSTITUTIONS
Investment Banks An organization that deals in a variety of
Brokerage Firms monetary transactions, such as cash
Assist individuals and institutions in buying deposits, loans, exchanging securities,
and selling securities among available and raising capital.
investors.
Insurance Companies
Help individuals transfer the risk of loss.
Individuals and businesses use insurance
companies to protect against financial loss
due to death, disability, accidents, property
damage, and other misfortunes.

Mortgage Companies
Originating or funding mortgage loans.
While most mortgage companies serve the
individual consumer market, some
specialize in lending options for commercial
real estate only.
What is the main difference
between a bank and other
financial institutions?
Non-banking financial institutions is that
the latter cannot accept deposits into
savings and demand deposit accounts,
whereas these are the core business for
the former.
 1 2
One Account? Multiple
Account?

Better you watch this first!

www.youtube.com/watch?v=AOaKZS8fdzU
THE NEGATIVE SIDE OF HAVING
MULTIPLE BANK ACCOUNTS
One potential issue is that it could end up being time-consuming to manage
and transfer between multiple accounts.

In addition, having more than one savings account could become costly if each
financial institution has monthly fees and/or charges for transferring funds
between them.

Therefore, think carefully about how many accounts are really necessary for
your financial goals before you commit!
TIPS FOR MANAGING MULTIPLE
SAVINGS ACCOUNTS EFFECTIVELY
First, it’s important to make sure that each individual account is fit for purpose.

Second, consider setting up separate automatic transfers from your main

account into each individual savings account to ensure regular contributions. If
possible, keep any emergency funds in higher-yield accounts to maximize their
growth potential.

Third, review your progress periodically to make sure you are staying on track
and meeting your goals for each account.
THE EFFECTIVE
USE OF SAVING
ACCOUNTS
SAVING ACCOUNT BANK
PRO CONS

Earn Interest Admin Fees

Easy to Open Low APYs
Accessible Funds No Tax Benefits
FDIC-Insured Account Restrictions
Low Risk FDIC Insurance is Limited
HOW TO USE a SAVING ACCOUNT

A good first step Once you have a After diversify Enjoy You Day!
when you start six-month You may opt to put an I don't know what I
saving money. emergency fund additional portion of have to write here...
Look for savings It can be your income toward
accounts with minimal advantageous to retirement savings in
fees, a good interest diversify. Explore even riskier
rate, a low minimum other savings vehicles investments that have
balance requirement, that offer a higher rate much more upside
and solid customer of return but might be potential.
service. less liquid or riskier.
 HOW TO MANAGE YOUR SAVINGS
ACCOUNT EFFECTIVELY
Don't Go Overboard
If you put too much into savings, you can set yourself up for failure just as surely as if you save
too little.

Separate Your Savings

To keep your savings from dwindling over time, it’s better to find an entirely separate financial
institution, even an online-only bank, and transfer funds to it for savings purposes.

Choose the Right Type of Savings Account

Besides typical savings accounts, you might want to explore more long-term options for saving.
 HOW TO MANAGE YOUR SAVINGS
ACCOUNT EFFECTIVELY
Work Toward Savings Goals
It’s really important to have firm goals established that you are working toward. It’s not enough
to just commit; you have to know what you’re saving for and how much you need to accumulate.

Utilize Direct Deposit

The idea is to have the savings put aside automatically so that you don’t notice the money or
have to save it yourself.

Check in Regularly
With online banking, you’re always a quick login away from knowing how your savings are doing.
 HOW TO MANAGE YOUR SAVINGS
ACCOUNT EFFECTIVELY
Save From Every Source of Income
Whenever you have money coming in, no matter the source, save part of it.

Treat Your Savings as Off-limits

Dipping into your savings for any reason should be a last resort. For your emergency savings,
tap into those funds only in the event of a bona fide emergency.

Make a Commitment to Save

Of Course!

Pay Down Debts

If you can pay off debts and keep them paid off, you’ll free up income that would otherwise be
taken by interest charges and monthly debt payments.
 Quote

“The best way to predict the

future is to create it.” –
Quote By Peter Drucker
Management Consultant
REFERENCES
BANKING
1. https://id.wikipedia.org/wiki/Bank_Indonesia
2. www.thebalancemoney.com/what-is-banking-3305812
3. www.bi.go.id/id/tentang-bi/profil/Default.aspx

FINANCIAL INSTITUTION
1. www.thebalancemoney.com/what-is-a-financial-institution-5190896
2. www.investopedia.com/ask/answers/061615/what-are-major-categories-financial-institutions-and-what-are-their-primary-roles.asp

One or Multiple Account Saving Plans?

1. www.youtube.com/watch?v=AOaKZS8fdzU
2. www.quickanddirtytips.com/articles/the-pros-and-cons-of-having-multiple-savings-accounts/

The Effective Use of Saving Accounts

1. www.thebalancemoney.com/savings-account-pros-and-cons-5218325#toc-how-to-use-a-savings-account
2. credit.org/blog/how-to-manage-your-savings-account-effectively/
THANK YOU
FATHURRAHMAN ADZANI - 215020200111052