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 money
- 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
- 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
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
- Monthly Service Fee
- 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
Updated: November 10, 2021