Banking

What is a Bank Account?

  • A financial account, which stores money on behalf of a customer
  • Two most common types: transaction accounts(or checking account) and savings accounts
    • Transaction: easy and immediate access to money
    • Savings: allows the customer to earn interest therefore limited access to moneyA piggy bank inside a safe
  • Why is a bank better than a piggy bank?
    • Keeps your money safe and secure
    • Helps you develop sound financial management
    • Creates financial stability
    • Helps you plan for emergencies              
    • Offers financial services to help you manage spending, saving, payments, and investments

Why should you have a Bank Account?

  • Security
    • Kept in a safe place and easy access to transferring large sums of money
  • Convenience
    • Easy access to fast cash from an ATM and simple online shopping through a debit card.
  • Earning interest
    • Having a savings account which acquires interest helps protect you from inflation
    • Overall, helps organize and manage your spending through statements​​

A man is holding a piggy bank outside of a building labeled ‘bank’”

Factors to consider in choosing banking services

1. Accessibility

  • 24-hour access
  • Online banking
  • Mobile banking
  • Smartphone apps
  • Direct deposit

2. Account features

  • Account fees
  • Overdraft protection
  • Availability of funds
  • Interest rates
  • ATM & debit cards

3. Location

  • Online only
  • Physical locations
  • ATM locations
  • Convenience
  • Proximity 

Checking Account Fees to be aware of

  • Monthly Service FeeA microscope focused over the word “Fees”
    • Also called a maintenance fee
    • Bank might charge this monthly just for having the account
  • Per-Check Fee
    • A fee for every check you write
    • Some banks may charge after writing a certain number of checks
  • Check Printing Fee  
    • A fee for printing checks you purchase from your bank
  • ATM-Use Fee
    • A fee for using an ATM whether from your bank or from another bank
    • Using another bank’s ATM, that bank may charge an additional fee
  • Overdraft Fee
    • Also called NSF fees
    • Charged when you do not have enough money to cover expenses you are making
  • Returned Deposit Item
    • A fee associated with cashing out a check you wrote yet you do not have enough money in your account
  • Stop-Payment Fee
    • A fee associated with asking the bank to stop a check from being paid
    • A bank may not always be able to stop the check in time
  • Teller Fee
    • Some banks may charge a fee for making deposits or withdrawals through a teller more than a set number of times each month