Introduction to Bank Accounts

Questions? Why do some people choose not have a bank account? What are some advantages to having a bank account? What is the difference between a bank and credit union?

Advantages to having a bank or credit union You money is safe from loss, theft or fire Each account is insured p to $100,000 by the FDIC (banks) or the credit unions Canceled checks are proof that you paid a bill Ability to use checks Enable you to keep track of how you spend our money

Credit Unions Non-profit and owned by its members while a bank is for profit that makes money from charging fees and lending money Credit unions serve groups that share something in common: profession, neighborhood, ect

Account Verification Services Has anyone you know ever been denied a bank account when they tried to open one? How do banks find out about your past account history? What can you do if you are denied a bank account because of incorrect information?

Key points on Verification Services: ChexSystems is the major national account verification company If you ever overdrew on your checking account and then abandoned the negative balance, you might be listed on the ChexSystems database. Reports about overdrafts or closed accounts remain on file for years You have the right to dispute inaccurate information You can get a copy of your report If you have been denied a bank account Your checks were stolen or you are a victim of another type of bank fraud

Types of Accounts Free Checking Direct deposit Electronic Transfer Accounts Internet banking Online bill payment Low minimum balance for seniors and students

How can you use your debit card? At an ATM or POS (point of sale) terminal, your PIN is needed At stores and restaurants that accept credit cards The money is immediately deducted from your checking account If you debit card is stolen alert your bank as soon as possible. The longer you wait, the more money you might be responsible for

Why is it important to enter checks into your check book register? So that you don’t bounce checks So that you know how much money you have in the bank So that you can track your spending and stick to a budget

Opening a Bank Account What do you need to bring with you when you go to open an account? Photo ID (drivers license) Proof of address such as a utility bill Social security number

Ask these questions when opening an account: What is the minimum $ needed to open an account? What is the interest rate on the account? Is there a monthly fee? Is there any way to avoid the fee? What happens when my account balance falls below the minimum requirement? Is there a maximum number of checks I can write a month? Is there an ATM fee?

ATM Card Access money at ATM ATM fees

Sample Application

Sample Check