Bank Accounts

“Bank Accounts: What You Should Know”

Overview
How to Choose the Right Bank Banking Terminology Types of Bank Accounts Features of Checking Accounts How to Write a Check Other Bank Services

How to Choose the Right Bank
Location
 Is

it close to home or campus?  Will I need a car to get there?  Will I have easy access to an Automatic Teller Machine (ATM)?

Services
 Is

it open when I need to use it?  Does it offer the services I need?

How to Choose the Right Bank
Costs
 How

much are the fees? (ATM, monthly, per-

check, etc.)

Requirements to Open an Account
 Documents  Minimum

(UB Card, proof of address, etc.)

Balance  Minimum Transactions or limits

Banking Terminology
Deposit: to put money in the bank
 Bank

deposit (noun)

Withdraw: to take money out of the bank
 Withdrawal

(noun)  Overdraw: to take more money out of your account than is available

More Banking Terminology
Interest: money which your bank account earns
 Fixed

interest rate: unchanging rate of interest  Variable interest rate: rate of interest which changes regularly

Types of Bank Accounts
Checking Accounts
 Permit

you to write checks up to the amount of money in the account

Savings Accounts
 Earn

interest on the money in the account  May not have check-writing or ATM privileges

Types of Banking Accounts
Money Market accounts
Permit limited check writing  Pay variable interest


Certificates of Deposit (CD’s)
Exist for specified time periods (30 days - 10 years)  Pay fixed or variable interest  Charge a penalty if the money is withdrawn early


Features of Checking Accounts
Minimum deposit


Minimum amount of money required to open account

Service fees
Monthly statement fee  Per check fee  Debit card (ATM) fee


Minimum balance
Required amount of money in account  You must pay a fee if amount falls below minimum balance.


More Features of Checking Accounts
Interest
Interest-bearing accounts pay interest  Interest-free accounts do not pay interest


Other Fees


Nonsufficient Funds (NSF) fee


Fee for writing a check for “bouncing a check” (writing it for more money than is in your account) Fee for sending money electronically from another bank



Wire transfer fee


More Features of Checking Accounts
Overdraft protection
Protects you from overdrawing your account  Money is automatically taken from your savings account if you write a check or make an ATM withdrawal for too much money.


FDIC protection
Federal Deposit Insurance Corporation  U.S. government agency which insures your bank account up to $100,000


What You Need to Open An Account
Passport or other official government I.D. Copies of immigration documents UB Card (may be optional) Address in U.S. Minimum required deposit

How to Use your Checkbook

How to Write a Check

How to Keep Your Check Register

How to Reconcile Your Bank Statement

ATM Cards
ATM = Automatic Teller Machine ATM card = plastic card with a personal code Provides 24-hour access to your money Used to deposit money into or withdraw it from your account Access to your money is free if you use your bank’s ATM


If you use another bank’s ATM, you may be charged a fee by the other bank and your bank.

Debit card
Card which is used to make purchases  Money is taken directly from the account


Credit card
Card which is used to make purchases  Owner of the card is billed for the purchases and pays later


Important ATM Card Tips
Keep your card in a secure place
 Do

not write your personal code on your ATM card or keep it with your card.  Keep your ATM receipts and write them in your checkbook.  Review your monthly bank statement for accuracy.

Debit Cards
Plastic card with a personal code Also used as ATM card Used to make purchases Amount of purchase is withdrawn directly from your bank account

Credit Cards
Plastic card with a personal code Can be used as ATM card if procedures are followed Used to make purchases You will be billed for the amount of the purchase. If you don’t pay your bill each month, you will be charged interest.

Types of Credit Cards
Private Label
 Can

only be used in one place  Examples: Department Stores, Gasoline Companies

General Label
 Can

be used in many places  Examples: Bank Card, Major Credit Card (VISA, American Express, MasterCard, Discover)

Shopping for a Credit Card
Annual Fee? Annual Percentage Rate? Computation Method? Grace Period? Finance Charge? Credit Limit? Card Incentives?

Maintaining Good Credit
Credit Agencies The Credit Process
Credit Report  Credit Rating  Credit Score


Equifax  Experian  TransUnion


Establishing a Credit History

Things to Do to Establish and Maintain Good Credit
What can everyone do to establish and maintain good credit?
       

1. Pay all bills on time 2. Have both a checking and savings account at a local bank 3. Avoid late fees 4. Know your budgetary limits 5. Monitor your credit card balances 6. Prioritize your needs and wants 7. Request a copy of your credit report each year 8. Use your credit card through secure channels

Managing Credit Issues and Concerns
Warning Signs
 Delinquent

payments  Default notices  Repossession  Collection agency notices & calls

Managing Credit Issues and Concerns
Resources and Assistance
 Be

proactive  Communicate with your bank or creditor  Explore debt consolidation  Consider credit counseling

Consumer Credit Counseling Service of Buffalo, Inc. 40 Gardenville Pkwy. Suite 300 West Seneca, NY 14224 Tel. (716) 712-2062

Preventing Fraud
Do not accept a personal check from someone you don’t know well. Keep your ATM, debit and credit cards and your checkbook in a safe place. Check your monthly bank statements to be sure the deposits and withdrawals are correct. If your card is lost or stolen, call your bank or credit card company immediately! Avoid carrying large amounts of cash.

Banks with ATM’s at UB
HSBC Key Bank M&T Bank

Bank of America
Free Student Checking for 5 years
 No

monthly charges  No minimum balance  Free online banking with unlimited bill pay  Unlimited check writing  Free Bank of America Visa Check Card  Free Stuff Happens rebate card

Bank of America
1 Full Service ATM on UB’s North Campus (Nov 06) 1 Full Service ATM on UB’s South Campus (Nov 06) 1 Full Service ATM across the street from the South Campus (next to Tim Horton’s) Full-service Bank of America banking center, drive-in & ATM ten minutes by foot from UB’s North Campus Wire transfers

HSBC Bank
Free checking
No monthly or per-check fee  No minimum balance requirement  Unlimited check writing  Free online banking & bill payment  Free online bank statements  Free 24-hour telephone banking


No-fee MasterCard debit card with unlimited use

HSBC Bank
2 ATM’s on UB’s North Campus 1 ATM on UB’s South Campus Full-service HSBC branch, drive-in & ATM ten minutes by foot from UB’s South Campus Wire transfers

M&T Bank
Totally free checking
 No

monthly or per-check fee  No minimum balance requirement  Unlimited check writing  Free online banking

M&T Bank
Free Visa Debit Card
 Use

at any STAR, NYCE, CIRRUS or VISA ATM worldwide  Unlimited use

2 ATM’s on UB’s North Campus 2 ATM’s on UB’s South Campus Full service M&T branch, drive-in & 2 ATM’s across from UB’s South Campus

THANK YOU VERY MUCH!