Illustration of the Rule of Three to select a financial institution

1. Two Banks and a Credit Union: Deposit Account Edition
Make a list of local financial institutions and search the web sites for two local banks and a
credit union to gather information about the features of their CDs and deposit accounts
(i.e., checking and savings accounts). Discuss differences between the two banks and
credit union in terms of cost, convenience, and other features and select the best one.
Product and Service Features
Bank #1 Bank #2 Credit Union
Savings Accounts
Federal Account Insurance*
Minimum balance requirement on savings
account to waive monthly fee
Interest rate on savings account
Certificates of Deposit (CDs)
Interest rate on 1-year, 3-year, and 5-year
certificate of deposit (CD)
Opening minimum balance for CDs
CD penalty for withdrawals made before
maturity date
Checking Accounts
Minimum balance requirement on
checking account to waive monthly fee
Interest rate on checking account
Overdraft, NSF, or returned item fee (for
insufficient funds to cover check amount)
Fees and Services
Returned deposited item fee (for deposited
checks with insufficient funds)
Cost to use ATMs at another bank or
location
Online banking services offered and costs
Description of banking programs for
students
Cost of money orders and cashier’s checks
*FDIC insurance for banks and NCUA insurance for credit union
Which of the three financial institutions has the best deposit account features and why?