“Bank Accounts: What You Should Know”

Overview Banking Terminology How to Choose the Right Bank Types of Bank Accounts Features of Checking Accounts How to Write a Check Credit Cards, Debit Cards & ATM Cards How to Maintain a Good Credit History & Prevent Fraud

Banking Terminology Deposit: to put money in the bank Bank deposit (noun) (also called “credit”) Withdraw: to take money out of the bank Withdrawal (noun) (also called “debit”) Overdraw: to take more money out of your account than is available PIN: Personal Identification Number

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 Note: Interest rates change over time and vary greatly. There are many factors that influence them.

Questions to Ask Yourself What will you need to do when you use your bank account? Save money and earn interest? Withdraw money frequently? Write checks? Wire money home and receive wire transfers?

Questions to Ask Yourself (cont.) How do you want to carry out those banking transactions? At the bank? Online? Using an Automated Teller Machine (ATM)?

How to Choose the Right Bank Location Is it close to home or campus? Can I easily walk there? Will I have easy access to an ATM? Costs How much are the fees? (ATM, wire transfers, etc.)

Types of Bank Accounts Checking Accounts Savings 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 May have limits on the number of monthly transactions

Types of Banking Accounts Money Market accounts Permit limited check writing Pay variable interest Limits on the number of monthly transactions Certificates of Deposit (CD’s) Exist for specified time periods (30 days - 10 years) Pay fixed or variable interest Generally, have higher interest rates than savings accounts Charge a penalty if the money is withdrawn early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 fees Per check fee Debit card (ATM) fee Minimum balance Required amount of money in the account (not always required) You must pay a fee if the amount falls below the minimum balance (called an “overdraft fee”)

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 “bouncing a check” (writing it for more money than is in your account) Fee for overdrawing when using a debit card Wire transfer fee Fee for sending money electronically to another bank or receiving money from another bank (incoming or outgoing) Foreign ATM fee Fee for using another bank’s ATM

More Features of Checking Accounts Overdraft protection Protects you from overdrawing your account Money is automatically taken from your 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 (temporarily changed to $250,000 until December 31, 2013)

What You Need to Open a Bank Account Passport or other official government I.D. Copies of immigration documents UB Card (may be optional) Address in U.S. (not a University office) Address in your home country U.S. Phone Number (required by Bank of America) Minimum required deposit Proof of enrollment (may be optional)

How to Use your Checkbook 4/17/2017 How to Use your Checkbook

How to Write a Check University at Buffalo Write in numbers: How much is the check for? Joe Student 123 Main Street Amherst, NY 14226 MM/DD/YYYY University at Buffalo 100.00 One hundred and 00/100------------------------------ Joe Student Person #: 3555-5555 Write in letters: Who is the check for? Write in letters: How much is the check for? Write today’s date here in this format: Month/Day/Year Write your UB Person number here Sign YOUR name here

How to Keep Your Check Register

How to Reconcile Your Bank Statement

ATM Cards Issued by the bank when you open a checking or savings account ATM = Automated Teller Machine 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 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 PIN on your ATM card or keep it with your card. Do not choose an easy PIN to guess (Ex. “1234” or your birthdate) Do not share your PIN with anyone else! Keep your ATM receipts and write them in your checkbook register.

Important ATM Card Tips Put your cash in an envelope before depositing it in an ATM, if necessary. (Note: Bank of America and HSBC do not use envelopes.) Review your monthly bank statement for accuracy.

Debit Cards An ATM card is sometimes also a debit card Used to make purchases Must use a PIN to access your money Amount of purchase is withdrawn directly from your bank account Some banks charge a fee each time you use a debit card

Credit Cards Used to make purchases 4/17/2017 Credit Cards 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. It might be possible to withdraw money, but you will be charged a fee.

Types of Credit Cards Private Label General Label Can only be used in one place Ex: department stores, gasoline companies General Label Can be used in many places Ex: Bank Card, Major Credit Card (VISA, American Express, MasterCard, Discover)

Choosing a Credit Card Annual Fee? Finance Charge (Interest Rate)? Yearly fee charged to use a credit card Finance Charge (Interest Rate)? Interest rates vary greatly (8%-32%, sometimes even higher) Annual Percentage Rate? Yearly cost of borrowing

Choosing a Credit Card Computation Method? Grace Period? Credit Limit? How finance charges are calculated Grace Period? Allows you avoid finance charges if you pay your balance in full before a certain date Credit Limit? Amount of money you are allowed to borrow

Choosing a Credit Card (cont.) Late Fee? Fee you will be charged if you do not pay the amount due by a certain date Card Incentives? Benefits to using a particular credit card Airline miles, cash back, reward points, etc.

Maintaining Good Credit Credit Agencies Equifax Experian TransUnion The Credit Process Credit Report Annualcreditreport.com Credit Rating Credit Score Establishing a Credit History

Things to Do to Establish and Maintain Good Credit What can everyone do to establish and maintain good credit? 1. Know your budgetary limits 2. Prioritize your needs and wants 3. Pay all bills on time 4. Avoid late fees 5. Monitor your credit card balances 6. Have both a checking and savings account at a local bank 7. Use your credit card through secure channels 8. Request a copy of your credit report each year

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 Keep your ATM, debit and credit cards and your checkbook in a safe place. If your card is lost or stolen, call your bank or credit card company immediately! Never respond to an e-mail request for your bank account information! Visit www.ftc.gov for advice about what to do.

Preventing Fraud (cont.) Check your monthly bank statements to be sure they are correct. Do not accept a personal check from someone you don’t know well. Beware of scams that ask you to deposit a check!

Important Reminders If you move or change your phone number, be sure to give your bank your new address and phone number! Be sure to keep your PIN number in a place where no one can find it!

Banks with ATM’s at UB Bank of America HSBC

Bank of America Electronic Banking Debit Card – Keep the change Bank When You Want, Where You Want Checking Accounts That Fit Your Schedule Electronic Banking Debit Card – Keep the change Deposit Image ATMs Text Banking Online Banking Optional Bill Pay Online Paperless Statements

Bank of America 1 Full Service ATM on UB’s North Campus 1 Full Service ATM on UB’s South Campus 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 Student / Choice Checking Bank at Work No monthly or per-check fee for prospective students for 4 years No minimum balance requirement for prospective students for 4 years Unlimited check writing Free online banking & bill payment Free online bank statements Free 24-hour telephone banking Bank at Work Premium banking packages for students who work at UB and have direct deposit No-fee MasterCard debit card with unlimited use

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

M&T Bank M&T @ College Checking No monthly service charge or minimum balance Unlimited check writing Free M&T Web Banking and Web Bill Pay Free M&T Visa Check Card (debit card) 4 Free non-M&T ATM transactions per month 4 Surcharge rebates per month Free first order of 50 checks Free incoming international and domestic wire transfers Free PIN/POS (Point of Sale) transactions Overdraft protection available with free Savings account

M&T Bank No ATM’s on campus currently, but that may change Full service M&T branch, drive-in & 2 ATM’s across from UB’s South Campus

Interested in learning more? “Living on a Shoestring: How to Live Cheaply as a Student” Thursday, September 16 3:30-4:30 Capen Hall 31, North Campus ISSS semester workshops: www.buffalo.edu/intlservices/workdesc.html

THANK YOU VERY MUCH!